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Annulment

edited 30 November -1 at 1:00AM in Bankruptcy & Living With It
4 replies 1.2K views
CStar75CStar75 Forumite
30 posts
10 Posts First Anniversary
edited 30 November -1 at 1:00AM in Bankruptcy & Living With It
My husband was sadly made bankrupt 6 months ago by one creditor due to historic business debts he has been made liable for. We have a joint property with equity that could pay off the bankruptcy which I understand is in someways, a fortunate position to be in. We are too young for equity release options. We've explored expensive bridge loans with sale exit routes as we cannot find a lender willing to lend otherwise. I cannot afford to pay what's owed alone and don't have anyway to fund it. Lawyers and the OR have suggested annulment as the best option but interested to hear if I should sell without the bridge loan instead. Has anyone had trustees involved and can they force a sale when we have school aged children and the debt is not joint? I have read it on sites such as CAB but haven't yet heard anyone who has personally been down this route. Lawyers and supposed annulment specialists have issued large bills and I'm fed up paying out without a resolution. The annulment court hearings have been repeatedly adjourned as problems with paperwork and proof of debt from smaller creditors aren't forthcoming so lenders cannot commit fully without this. We have paid some smaller creditors off in full as advised but they fail to prove payment - what can we do as an annulment would fail in any case? Any advice would be welcome as I want to ensure we do what's best for our family in the long run, without the need to unsettle and potentially uproot us further away from family/school as what we would be left with, would force us outside our local area due to affordability. Are there other options we could explore? Many thanks.

Replies

  • Minkym00Minkym00 Forumite
    408 posts
    100 Posts First Anniversary
    ✭✭
    Some more info would be useful here please.

    - How much was the bankruptcy debt for and what gave you paid off already?
    - How much equity is there in the property? And is his share 50%?
    - Has an IP been appointed as trustee or is it still with the OR?
    - Can you clarify on what basis have you been seeking an annulment? If you’ve not paid in full (you said you couldn’t afford to) then why you are seeking annulment yet?
  • CStar75CStar75 Forumite
    30 posts
    10 Posts First Anniversary
    Hi

    Many thanks for your reply. Please see answers below:
    The bankruptcy debt is for £55k plus creditor court costs supposedly £19k (not seen in writing) plus OR costs of almost £9k
    - remaining equity would be £165,000 after all debts unsecure and secure have been paid off, including the main mortgage with a 50/50 share
    - It is still with the OR
    - We're looking to annul by paying in full with the equity either by a bridging loan finance with a sale exit route or a sale triggered by us, not using a loan. I wondered what would be cost effective as the OR said trustees would be involved if I trigger the sale? I personally cannot afford to buy my husband out either.
    - The OR asked us to put the annulment paperwork in court within 3 weeks of his first appointment even though nothing had been paid off, which seems a bit back to front to me.

    Thank you.
  • Minkym00Minkym00 Forumite
    408 posts
    100 Posts First Anniversary
    ✭✭
    The best way to deal with this is via a bridging loan. You can’t sell the property yourself as the OR will have put on a restriction as soon as they became aware of the asset.
    If you are unable to get a bridging loan then the OR will appoint an IP as a trustee. The IP will then force a sale and will also charge extortionate fees which will be paid from the equity. You’ll get back any surplus.
    Unless you can find a third party to buy out your husband’s beneficial interest.
    A bridging loan is your least worst option.
  • CStar75CStar75 Forumite
    30 posts
    10 Posts First Anniversary
    Thank you so much for taking the time to offer help by replying. I agree you're absolutely right a bridge is the way forward - maybe just needed the assurance. The creditors and the system is brutal and I'm looking forward, however painful the process, of being free from the situation we're in. Best regards.
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