Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • CStar75
    • By CStar75 18th Jun 19, 10:17 PM
    • 6Posts
    • 0Thanks
    CStar75
    Annulment
    • #1
    • 18th Jun 19, 10:17 PM
    Annulment 18th Jun 19 at 10:17 PM
    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.
Page 1
    • Minkym00
    • By Minkym00 19th Jun 19, 5:57 PM
    • 136 Posts
    • 53 Thanks
    Minkym00
    • #2
    • 19th Jun 19, 5:57 PM
    • #2
    • 19th Jun 19, 5:57 PM
    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?
    • CStar75
    • By CStar75 20th Jun 19, 2:47 PM
    • 6 Posts
    • 0 Thanks
    CStar75
    • #3
    • 20th Jun 19, 2:47 PM
    Annulment
    • #3
    • 20th Jun 19, 2:47 PM
    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.
    • Minkym00
    • By Minkym00 21st Jun 19, 3:17 PM
    • 136 Posts
    • 53 Thanks
    Minkym00
    • #4
    • 21st Jun 19, 3:17 PM
    • #4
    • 21st Jun 19, 3:17 PM
    The best way to deal with this is via a bridging loan. You canít 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. Youíll get back any surplus.
    Unless you can find a third party to buy out your husbandís beneficial interest.
    A bridging loan is your least worst option.
    • CStar75
    • By CStar75 21st Jun 19, 3:58 PM
    • 6 Posts
    • 0 Thanks
    CStar75
    • #5
    • 21st Jun 19, 3:58 PM
    • #5
    • 21st Jun 19, 3:58 PM
    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.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

2,473Posts Today

7,012Users online

Martin's Twitter