advice please

[rachel33]

Hello,

I was declared bankrupt on the 29th June 2007 and I have received a charging order on our property which is dated 3rd July 2007, it was for an unsecured loan with NR. Does anyone know if this will be removed as it is dated after I was declared? We are hoping to keep our home with family help.
I was feeling quite calm but I can feel the stresses building up again!
Thanks
Rachel

[MelanieGiles]

As the charge has been made post-bankruptcy it will be invalid. You should advise your Trustee in bankruptcy about the paperwork you have received, and they will then deal directly with the Land Registry and Northern Rock.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[rachel33]

Melanie,

I have just looked again at the charging order and although it is dated 3rd July 2007, on reading further on it states that the charging order was made by Gateshead County Court on 21st June 2007.
Will this make any difference?
Thanks
Rachel

[MelanieGiles]

Was it an Interim Order made on 21 June 2007, or a final order? And what was actually done on 3 July - is that merely the date of the letter to you confirming the charge?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[rachel33]

Melanie it states its an interim charging order. It also states that we have to reply by 24th July 2007. the 3rd July just seems to be the date of the letter.
Thanks
Rachel

[MelanieGiles]

The interim order is therefore defeated by the bankruptcy order, so on this occasion Northern Rock have failed to secure their debt. Obviously this means that you are left with equity in the property, which will need to be realised for the benefit of all creditors, but I note that you have family support for this to protect your home.

Problem solved!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[rachel33]

Thanks Melanie, yet again your advice is truly brilliant! I suppose if it had gone through then we wouldn't have had any equity as the amount of equity at the moment isn't huge, but I want to pay back as much as I can.

Thanks again

Rachel

[MelanieGiles]

Yes Rachel - but you would have had to pay Northern Rock as a secured creditor - which may have had certain advantages for you as you may not have needed to then use family money to purchase your beneficial interest. This would, of course,have preferred Northern Rcok over all of the other creditors.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[rachel33]

I suppose that is why they tried to pursue the order very quickly!
Thanks again
Rachel