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
    • WobTimus_Prime
    • By WobTimus_Prime 6th May 18, 3:28 PM
    • 7Posts
    • 1Thanks
    WobTimus_Prime
    The sale of my family home as a result of bankruptcy
    • #1
    • 6th May 18, 3:28 PM
    The sale of my family home as a result of bankruptcy 6th May 18 at 3:28 PM
    Good afternoon all,

    Iím desperately seeking advice with regards to the sale of my family home which is jointly owned with my wife and is mortgaged.

    I made myself bankrupt in December 2015 with debts totalling £50000. Up until April this year I have been dealing solely with the OR making regular IPA payments. I received a letter in April from a company called Mazars (the new trustee) informing me that they intend to sell our home to realise my interest.

    I believe there is going to be £70000 equity if not more so I know they are definitely going to try and sell it as we have no way of raising us 50% of that amount to buy my interest. We are waiting on a valuation through Mazars which is taking place on Wednesday.

    We donít want to move as itís our home but this is made worse by the fact my wife is 6 months pregnant.

    What I want to know firstly is can anyone explain in simple terms the process of the trustee trying to sell our house and likely timescales?

    Secondly do we have any other options that I might not be aware of? My brain is well and truly frazzled from reading various information online.

    Lastly I was doing some reading of the guidance notes designed to help OR deal with someoneís interest in a property. Please see below:

    31.3.158 Basic process for realising the bankruptís interest in a property

    The basic process for the realisation of the bankruptís interest in a property is that (subject to a minimum property value Ė see paragraph 31.3.159) a letter [note 5] is sent to the bankrupt and/or any joint owner to establish if any party wants to make an offer for the bankruptís interest (guidance on this process, and the subsequent sale, is in paragraphs 31.3.159 to 31.3.173).


    We never received a letter from OR asking if we wanted to make an offer for the property. We have only just received that from Mazars. Does this constitute any breach in the process from a legal point of view. I know Iím probably clutching at straws here but Iím trying to do everything I can to enable us to stay in our family home, at least until we had the baby.

    I would be enormously grateful if anyone could give me some advise so that I know where I stand after the trustee has completed their valuation.

    Many Thanks!
Page 1
    • maxmycardagain
    • By maxmycardagain 6th May 18, 5:15 PM
    • 4,691 Posts
    • 3,748 Thanks
    maxmycardagain
    • #2
    • 6th May 18, 5:15 PM
    • #2
    • 6th May 18, 5:15 PM
    wait for their valuation, disagree with it, get 3 of your own, spin it out.

    your wife is entitled to half the equity raised when it is sold (assuming she didnt go bankrupt and the debts were solely in your name...
    Dont worry, be happy
    • maxmycardagain
    • By maxmycardagain 6th May 18, 5:17 PM
    • 4,691 Posts
    • 3,748 Thanks
    maxmycardagain
    • #3
    • 6th May 18, 5:17 PM
    • #3
    • 6th May 18, 5:17 PM
    I have a befuddled memory of non-BR joint mortgagee's being offered the equity buy out for a very small % of the actual equity assuming it could be raised...
    Dont worry, be happy
    • TheGardener
    • By TheGardener 6th May 18, 5:18 PM
    • 2,475 Posts
    • 2,419 Thanks
    TheGardener
    • #4
    • 6th May 18, 5:18 PM
    • #4
    • 6th May 18, 5:18 PM
    Mortgages are not really my area but - 50% of the equity belongs to your wife so that reduces the ORs potential return to £35K and the OR will also need to factor in the costs of selling the property and the Trustees fees and their own fees so they usually accept an offer much lower than 50%. Is there anyway you can raise anything to offer the OR?
    • WobTimus_Prime
    • By WobTimus_Prime 6th May 18, 6:55 PM
    • 7 Posts
    • 1 Thanks
    WobTimus_Prime
    • #5
    • 6th May 18, 6:55 PM
    • #5
    • 6th May 18, 6:55 PM
    I think the max we could offer would be about 7500 the only other thing we could do is remortgage but that!!!8217;s going to be hard with the BR on my record. Our lenders already said no.
    • theoretica
    • By theoretica 6th May 18, 7:48 PM
    • 5,407 Posts
    • 6,743 Thanks
    theoretica
    • #6
    • 6th May 18, 7:48 PM
    • #6
    • 6th May 18, 7:48 PM
    I imagine they need the valuation first, before they can consider what offer they might accept, so they have not necessarily missed that step.
    But a banker, engaged at enormous expense,
    Had the whole of their cash in his care.
    Lewis Carroll
    • WobTimus_Prime
    • By WobTimus_Prime 6th May 18, 8:02 PM
    • 7 Posts
    • 1 Thanks
    WobTimus_Prime
    • #7
    • 6th May 18, 8:02 PM
    • #7
    • 6th May 18, 8:02 PM
    I was just wondering if the OR should have given us the option before it was passed to Mazars but that!!!8217;s a minor point anyway.

    I really wanted to get a grip of the process and our options.
    • silvercar
    • By silvercar 6th May 18, 10:51 PM
    • 38,128 Posts
    • 160,330 Thanks
    silvercar
    • #8
    • 6th May 18, 10:51 PM
    • #8
    • 6th May 18, 10:51 PM
    Could your wife or any other family member (or friend) make an offer to buy your beneficial interest? That is something you should be investigating now.

    I don't know the exact figures, but with an equity amount of £30k, the OR is going to want something. If you could chip the valuation down a bit, then there may be the possibility of the OR registering a charge on the property rather than insist on the property being sold.

    You want the valuation as low as possible, so don;t make the house too tidy, or the rooms too well lit, no need for the smell of coffee/ fresh bread.
    • WobTimus_Prime
    • By WobTimus_Prime 7th May 18, 8:24 AM
    • 7 Posts
    • 1 Thanks
    WobTimus_Prime
    • #9
    • 7th May 18, 8:24 AM
    • #9
    • 7th May 18, 8:24 AM
    As I!!!8217;ve mentioned unfortunately we wouldn!!!8217;t be able to raise much and no family members to contribute.

    Can anyone explain the process if my wife contests the sale which I believe is her right. Obviously we!!!8217;d rather come to some sort of arrangement and buy back the interest but not sure that!!!8217;s gonna be an option.
    • TheGardener
    • By TheGardener 7th May 18, 11:24 AM
    • 2,475 Posts
    • 2,419 Thanks
    TheGardener
    As silvercar says - pushing for a charge on the property might be an option and they may accept that along with anything you can raise to add to the pot. If you have to move you can ask for the IPA to be adjusted down too - all of which reduce the amount the OR /Trustee will get overall by pushing for a sale.
    • maxmycardagain
    • By maxmycardagain 7th May 18, 7:12 PM
    • 4,691 Posts
    • 3,748 Thanks
    maxmycardagain
    I think the max we could offer would be about 7500 the only other thing we could do is remortgage but that!!!8217;s going to be hard with the BR on my record. Our lenders already said no.
    Originally posted by WobTimus_Prime
    1st - dont offer the maximum... start at £2500

    Every offer/counter offer is another month anyway

    2nd - your wife might be able to get a loan against her equity?

    (as a last resort)

    When we had our home repo'd 30 years ago Birm Midshires came after me for £30,000

    after a year they took £3000
    Last edited by maxmycardagain; 07-05-2018 at 7:14 PM.
    Dont worry, be happy
    • Samsung_Note2
    • By Samsung_Note2 8th May 18, 1:40 PM
    • 640 Posts
    • 278 Thanks
    Samsung_Note2
    Probably of no help in this case..when we went joint bankrupt,as above we asked three local "friendly" estate agents to pop round for a cuppa and a piece of cake and give us a valuation.

    Obviously being the utterly honest person im not..i felt obliged to say we were going bankrupt,well it just so happens all three agents all estimated nearly the same figure or with in a couple of grand,who would have thought hey..lol

    Just so happens all three were all under the value of the mortgage and would be a loss for the OR to sell.

    Happily were now eight years on and roughly £60,000 in equity.
    • WobTimus_Prime
    • By WobTimus_Prime 8th May 18, 8:11 PM
    • 7 Posts
    • 1 Thanks
    WobTimus_Prime
    Well that would be ideal if we could do that but there!!!8217;s no way we!!!8217;re gojng to be in negative equity which in normal circumstances would obviously be great but not the case here.
    • maxmycardagain
    • By maxmycardagain 9th May 18, 11:37 AM
    • 4,691 Posts
    • 3,748 Thanks
    maxmycardagain
    Well that would be ideal if we could do that but there is no way we are going to be in negative equity which in normal circumstances would obviously be great but not the case here.
    Originally posted by WobTimus_Prime

    as said, only half of any "possible" equity would go to the IS, after the costs of selling and settling up with your missus they would be lucky to see £15,000 (if that) .......... and youd have a decent amount yourselves, but I think the IS will do a deal, lump sum and/or a payment plan...
    Dont worry, be happy
    • Samsung_Note2
    • By Samsung_Note2 14th May 18, 11:30 AM
    • 640 Posts
    • 278 Thanks
    Samsung_Note2
    Well that would be ideal if we could do that but there!!!8217;s no way we!!!8217;re gojng to be in negative equity which in normal circumstances would obviously be great but not the case here.
    Originally posted by WobTimus_Prime
    If three independent agents all valued it in a favourable light towards you..then the half of the equity would be less...less money to find.?
    • maxmycardagain
    • By maxmycardagain 16th May 18, 6:29 PM
    • 4,691 Posts
    • 3,748 Thanks
    maxmycardagain
    If three independent agents all valued it in a favourable light towards you..then the half of the equity would be less...less money to find.?
    Originally posted by Samsung_Note2
    certainly less interesting for the IS or the collectors
    Dont worry, be happy
    • WobTimus_Prime
    • By WobTimus_Prime 24th May 18, 5:32 PM
    • 7 Posts
    • 1 Thanks
    WobTimus_Prime
    Quick update, the trustee has had their valuation done and it shows £40,000ish as my half of the equity. We!!!8217;ll likely get our own valuations done.

    They have suggested that because of my wife!!!8217;s pregnancy we could agree to a protective possession order which could suspend the enforcement for 6 months.

    Does anyone know anything about this particular option?

    Thanks in advance !!!55357;!!!56397;
    • silvercar
    • By silvercar 25th May 18, 9:04 AM
    • 38,128 Posts
    • 160,330 Thanks
    silvercar
    Sounds like they are offering to secure a possession order but not enact it for 6 months. I've never heard of that, and you will want to check on the legals. Be careful what you are signing!

    To me it appears that they are giving you 6 months grace in return for you not contesting the possession. Does it also commit you to losing the £40k equity for your share? Or will the proceeds of the sale be calculated the sale is complete.

    If they took you to court, they may or may not win, they would incur costs, which may make them more likely to investigate other options eg a charging order.

    If you do go ahead, you may as well stop paying the mortgage - no point protecting the equity in the property if you are going to lose half of it! Save it as a rent deposit.
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

140Posts Today

1,345Users online

Martin's Twitter
  • Watching Theresa May... seriously would anyone in their right mind truly want her job right now!

  • RT @thecheekypostie: @MartinSLewis Thanks to this, I have just skim read it. To those in Scotland - on page 548, Dounreay is mentioned by n?

  • Today's twitter poll: The 585 page draft agreement of the withdrawal of the UK from the EU has been published. A? https://t.co/8YLkPyzqYM

  • Follow Martin