Beneficial Interest-Equity

[BlueShoes]

Sorry just posted this in wrong place, forgive me if you have read it in weekend postbag! (It's been a long day![:(])


Hello[:D]
If the difference between house value and mortgage owed is £5000 for example, and we file for bankruptcy, does the OR automatically offer the BI to us to buy back? (ie £2500 each)
I read the OR may decide to sit on the BI for up to three years, in the hope that the equity will rise, and a greater amount of money can be secured for creditors.
If this happens, and say the BI rises to £20,000, does one still get first refusal as it were? And what happens in the meantime?
Or once BR has been approved, do we approach the OR to buy back the BI ( a family member is going to provide the funds if neccessary)
And do we offer the full amount?
Or is there room for negotiation?
We are really confused by this.
Blue
btw-we really don't want to lose the house as we have just had lots of work done (the reason for most of our recent debt) and are very settled in the area (schools/work/friends/neighbours etc)

[MelanieGiles]

He cannot offer it to you to buy back - but will allow you to find friends or family to provide the funding. The Trustee has up to three years from the date of his appointment to deal with his interest in the property, but they generally do not sit on matters simply to try and generate more funds. At any time during the bankruptcy, anyone can make an offer to purchase the Trustee's interest, and his duty to the creditors is to get the best deal for creditors. You will need to offer the full amount, as there is no justification for paying less, and there is little room for negotiation.

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

[BlueShoes]

Thanks Melanie.
That makes a bit more sense, I think!
Blue