Just got back with a follow up appointment with the CAB, who were asking my plans for BR.
Before i go any further i would like to add she did seem to know what she was talking about but seemed funny with me at first.
She told me that 'if' i get discharged after a year the house will still be the 'property' of the OR for a further 2 years. I really didnt know this - when i said my husband will buy the BI of the house she told me the fees were £1 plus about £600 court costs if we were in negative equity, but doesnt think that the or will give us the option. Im terrified that they wont allow my husband to do this and the house will still belong to them even once i have been dis-charged.
She also said that if the OR were to ask my husband to buy the BI it would take a long time to ask him - can i not request this on my BR date??
Im so scared that we will loose everything because of me and feel that BR is now not an option - i have no other options left now and am sooo scared and feel like im back at square one all over again
Hi
Strange advice.
You will be discharged after a year unless you get a BR restricton order,very doubtful.
Wht would the OR want the house with negative equity ?
I'm sure the OR will allow you to buy the interest and I thought that the costs were less than £300
Regards
She told me they are likely to keep hold of the house for when the fixed term ends in November 2010 - i really had no idea it would still be in the hands of the receiver for all that time.
How long until my hubby would normally be asked to buy the BI?
and even if there were little equity in the property surely once he bought the BI, it would be hubby that owned it outright.
Im so scared now, we cant loose a house because of me, i will have to think of other ways around it
Hi Moneyworries, I know it's easier said than done but take a deep breath and calm down.
First of all, you will be discharged after a year providing you co-operate with the OR, and I don't think for one moment that you won't! Even if your get a BRO/U you will still be discharged after a year, but subject to the restrictions of BR for the duration of the order.
I don't know a great deal about BI, but as far as I'm aware your hubby can make an offer for the BI as soon as you're BR. If the property is in negative equity the BI can be bought for £211, which is the nominal sum of £1 plus solicitor's costs.
1. You will be discharged from Bankruptcy 1 year maximum from the date of the order. It can be earlier but the OR needs to apply for it and to tell the creditors he is doing so. I
2. What can last longer are the restrictions that go with Bankruptcy (no credit, can't be a director etc). If conduct has been wanting then the OR can apply for a Bankruptcy Restriction Order to extend those beyond discharge.
3. Property. Your husband can make an offer at any time. If the OR /Trustee thinks it will go back into equity in the short term then it's open to him to reject it, but if the OR thinks it won't do so then he will sell your interest for £1 plus (last time I heard) legal fees (i.e conveyancing costs) of £211. The Court does not enter into it.
4. All assets subject to exceptions take a one way trip into the bankruptcy estate and the trustee/OR will legally own them. However, in the case of the house, the trustee has to start the process of realising it or dealing with it within 3 years of the bankruptcy order or it will revert to you (known in the trade as the "use it or lose it" provision). That's what the CAB were referring to.
Hope these posts all clarify things for you
Last edited by ianmillington on Fri Sep 26, 2008 2:57 pm, edited 1 time in total.
Ian Millington
Insolvency Director
PDHL Ltd (formerly Personal Debt Helpline Ltd) www.pdhl.co.uk
Yes i have explored all other options, however this was the only thing left for me to do
Thanks for the advice to all regarding this post - i have had things clarified to me now and its much more clear. I think i really should have not started to panic so soon
