Repossession Process - Bankrupt

[Scottish Roddy]

Hi folks

 

My Wife & I are resigned to losing our home but are concerned about two things:

 

(1) Having some control over the timing so we can pack our things and make other arrangements for accommodation.

 

(2) Avoiding the humiliation of eviction. We've been in our home for 20 years and don't want all the neighbors to know.

 

My Wife's bankruptcy was discharged over a year ago, mine started on 7th of his month. The trustee (AIB) have sent us consent forms to dispose of the property.

 

Meantime, today the sheriff's officers served us will "Calling up Notices".

 

Does anyone know what happens now. Is it a repossession or will the trustees have precedence and sell the property? Will we be evicted & when?

 

Much obliged for any advice.

 

Rod.

[bluedogx]

Hi

 

Read your post but dont have a definitive answer. I can find out more tomorrow.

Who sent the calling up notice? Do you have northwest arrears?

[Scottish Roddy]

Hi bluedogx

 

Thanks for replying.

 

The calling-up notice was served by lawyers on behalf of our mortgage lenders RBS.

 

Not sure what you mean by "Northwest" arrears. We do have mortgage arrears of approx £5k

 

Rod.

[bluedogx]

Sorry. Meant mortgage arrears. Typing on a phone - not ideal with predictive text!

 

The trustee has no powers to stop a repossession but will hold an inhibition usually.

 

The homeowner and debtor protection Scotland act 2010 can help. All cases must call in front of the sheriff, pre action requirements must be carried out etc. I think you should find a money adviser locally to help you.

 

Is there equity? Would you get anything back once creditors have been paid ?

 

B

[Scottish Roddy]

On paper BD there is a little equity but not nearly enough to cover debts. (maybe 24k v's 60k).

 

I thought that the trustee would have to sell the property, pay off the mortgage and distribute any excess to our unsecured creditors.

We have consent forms to sign to allow them to do that.

 

We have had money advice from the local Advice Shop. In fact it was the advisor there who told us not to worry as the trustee would put the house on the market and would need to be reasonable about entry date. The thought of summary eviction is what really scares us

 

Just not sure how the RBS and the Trustee (Accountant in Bankruptcy) cooperate if at all?

 

Have to phone the AIB tomorrow anywhow.

[bluedogx]

The secured lender takes priority. If you didn't have mortgage arrears it would be as already advised.

 

Have you had housing advice? RBS should have sent a section 11 notice to your local council advising of potential homelessness when you got the calling up notice. You could apply as homeless or find a private let.

 

You could also consider walking away and not waiting for the sheriff officers to arrive. Although it's not as scary as some of the posts on here from people in England.

[bluedogx]

Found this out today

 

A trustee in bankruptcy should lodge a notice of their intention to sell with the secured creditor. This then stops the creditor from enforcing their security - unless the trustee has not been pro active in dealing with the sale in which case the secured creditor can call up the security. In which case the trustee only has the right to any free proceeds from the sale

 

B

[Scottish Roddy]

Thanks again BD.

 

I think the bit after "unless" is what applies to our case.

 

I've been busy today talking to the bankruptcy trustee and to the RBS's lawyers (Anderson Fyfe).

 

It appears that in the wake of the Calling Up Notice the RBS are still willing to negotiate a monthly payment to halt repossession proceedings.

 

Of course, it depends what we can scrape together - so we'll be discussing this over the weekend.

 

After speaking to the Anderson Fyfe, I called back the trustee to find out how they would react to such an agreement.

Apparently, they would revive their interest in the property and seek our consent (which we'd grant) to sell.

The sale by trustee route with negotiated date for vacating property is much preferable to the eviction by sheriff's officers route.

 

Can we pull this off I wonder...

[bluedogx]

Whether the trustee revives his interest in selling will be dependant on RBS now. However they are generally ok.

 

The homeowner and debtor protection act makes sure that banks have to take all reasonable courses of action to avoid repossession. It should only be a last resort. This includes getting time to sell.

 

If you get the house on the Market soon, no sheriff sill grant possession or eviction until a reasonable time has passed.

If RBS let the trustee take over it'll be fine. no reason why they wouldn't. Also remember that a payment arrangement to trustee will have to take into account the mortgage payment.

 

B

 

B