Bankrupt - possibly losing the house

[cashdesk]

Hi,

 

I was declared bankrupt in 2009 and as it is approaching 3 years the OR is asking for valuations and settlement figures for the house. It looks like after paying off the secured loans (£130k) there will be anywhere between £0k and £15k equity in the property. This is based on 3 valuations by estate agents:

 

£130k to £135k

 

£140k to £145k but test the market at £150k

 

Asking price of £140k to £150k to acheive a minimum figure of £135k

 

These are the figures in the letters from the estate agents, but I have no idea how the OR will interpret them. Will they take the highest amounts, add them together and divide by 3, or take an average from each estimate?

 

Once the have a figure, I know that there are 3 options:

 

Do nothing, there isn't enough equity

 

Place a charging order on the house

 

Force a sale

 

Lets say they decide the property must be sold. Who sells it? Is it me that has to sell it, or do I move out and the OR sells it via auction? This is what I really need to know, as I will no doubt have to go to court and I would like to be able to point out that if sold at auction it would possibly achieve a lower price than on the market. If I am the one who has to sell it, what if I can't find a buyer? What if potential buyers see that the windows need replacing (something 2 of the estate agents didn't care about) and that there is damp throughout? What if I am only offered a price well below the ORs valuation? I could realistically stay in the property for the next 10 years putting potential buyers off, but I would rather get it all sorted out now.

 

So, if anyone can tell me who does the selling in this situation I would be most grateful.

[tonycee]

Hi.

 

Its not yours to sell. Its unlikely based on the equity that they will do anything other than take an average, and ask you to purchase their interest in the property. If you could get 3 estimates showing zero equity, the purchase price from them could be as little as £1