Bankruptcy and LPA Recievers

[Mikeinhull]

Hi,

 

I went bankrupt just over 12 months ago and at the time had 15 buy to let properties.

 

I have recently been discharged from bankruptcy and have been approached by the local council regarding council tax for the 12 remaining properties which haven’t been sold and are still in the hands of the mortgage lenders LPA receivers.

 

I have spoken with The Insolvency Service who was appointed trustees who say the properties were placed in the hands of the lenders LPA receivers prior to going bankrupt and that The Insolvency Service has no authority over them. This means that the LPA receivers can continue to rent the properties out for as long as they like and when a void occurs I still have to pick up the tab.

 

Can you clarify if this is correct as my view is that if a court has ruled that The Insolvency Service has the authority to dispose of all my assets and liabilities, then these 12 properties should have also been included?

[rebel11]

Hi mike

 

Welcome to CAG

 

The guys will be happy to advise as soon as they are available.

 

Please let us know how your problem has been resolved, it could help fellow Caggers.

 

Thread has been moved to the correct forum.

[omgitsme]

Not sure Mikeinhull, i'm also in the same boat, i'm due out of my bankruptcy in sept 2012 and have 22 buy to lets, i'm not even sure which are sold and which ones r still with lpa recievers! I listed all my properties in my bankruptcy and listed all the relevant councils and council tax debts. I'm rather worried that even after going bankrupt, people r still going to chase me for money.

Hi,

 

I went bankrupt just over 12 months ago and at the time had 15 buy to let properties.

 

I have recently been discharged from bankruptcy and have been approached by the local council regarding council tax for the 12 remaining properties which haven’t been sold and are still in the hands of the mortgage lenders LPA receivers.

 

I have spoken with The Insolvency Service who was appointed trustees who say the properties were placed in the hands of the lenders LPA receivers prior to going bankrupt and that The Insolvency Service has no authority over them. This means that the LPA receivers can continue to rent the properties out for as long as they like and when a void occurs I still have to pick up the tab.

 

Can you clarify if this is correct as my view is that if a court has ruled that The Insolvency Service has the authority to dispose of all my assets and liabilities, then these 12 properties should have also been included?

[stu007]

Hi

 

Sadly if it is Council Tax whether a private property, buy to let etc until the properties are sold i am afraid you will be responsible for council tax as council tax is excluded from any bankruptcy.

 

What i think you may need to do is to write to your trustee appointed that is dealing with your bankruptcy and ask for clarification on this matter.

 

Also have a look at this link for the Insolvency Service: www.insolvency.gov.uk/

[Stigman]

Hi

you will be responsible for council tax as council tax is excluded from any bankruptcy.

 

Although I cannot comment on the buy-to-let property status, just to clarify, Council Tax can be included into your Bankruptcy.

 

The Council/Local Authority can however continue to send Bailiffs and recovery action up to your date of Discharge.

 

Stigman

[Stevebourne]

Hi,

 

I went bankrupt just over 12 months ago and at the time had 15 buy to let properties.

 

I have recently been discharged from bankruptcy and have been approached by the local council regarding council tax for the 12 remaining properties which haven’t been sold and are still in the hands of the mortgage lenders LPA receivers.

 

I have spoken with The Insolvency Service who was appointed trustees who say the properties were placed in the hands of the lenders LPA receivers prior to going bankrupt and that The Insolvency Service has no authority over them. This means that the LPA receivers can continue to rent the properties out for as long as they like and when a void occurs I still have to pick up the tab.

 

Can you clarify if this is correct as my view is that if a court has ruled that The Insolvency Service has the authority to dispose of all my assets and liabilities, then these 12 properties should have also been included?

 

Hi, I went bankrupt in sept 09 and had numerous buy to let properties with mortgage express which were included in the bankruptcy. I was discharged in aug 10 but have just started to be hounded by rossendales bailiffs for over £8k in unpaid council tax for the properties which were unoccupied until sold. I have since found out that because the properties were not repossessed in a court but put into recievership with templeton LPA I am indeed liable from the day after the bankruptcy, debts up to day of bankruptcy were included. This all seems unbelievable as templetons did not try and rent the properties out if untenanted, some off them were empty for over 2 years!!. Surely they have some duty of care and cannot just run up debts for people already in financial difficulty???

Would appreciate any thoughts or help on this matter!!

[stu007]

Hi

 

This is from the Insolvency Service on Council Tax:

 

What happens to my council tax arrears in a bankruptcy?

Certain amounts of council tax are classed as provable debts in bankruptcy. These are:

• All arrears outstanding at the date of the bankruptcy.
  
• The monthly instalment for the month in which you were made insolvent where, at the date of the bankruptcy order, the day on which that payment is due has passed and the payment has not been made.
  
• Where you have failed to comply with a reminder notice. This would mean the whole amount of the council tax for the year is due and payable, so the whole sum is a provable debt in a bankruptcy.
  

NB Where there have been no unpaid reminder notices or instalments due there is no provable debt in a bankruptcy for Council Tax. This means you must continue to pay your instalments as usual.

[debtinfo]

Check your council rules, there is normally an exemption if the properties are in the control of a receiver