Hubby's potential Insolvency / bankruptcy

[Gingerheid]

I am certain that the IP will have set you up with the best advice; they come expensive but they are the experts.

 

(When you say IP you do mean an IP, and not a salesman from an IVA company?)

[Gingerheid]

Glad the meeting went well, and more importantly that you're taking it ok.

 

I'm sure it'll be for the best and the beginning of something better.

[Gingerheid]

Which hearing is first, and have you also guaranteed the Lloyds debt?

 

If you hope to keep the house these could be quite significant.

[Gingerheid]

Did you get advise from the IP the OR's ex interest in the house?

[Gingerheid]

In reality the breathing space usually comes from

 

"If you have to take us to court to kick us out it will cost (a couple of thousand or so) and you'd have other expenses, but I can offer the value less a couple of thousand and you'll have the benefit of having the money faster.

[Gingerheid]

The car is going to be a problem, as bankruptcy legislation really doesn't allow for bankrupts to provide other people with cars.

 

There is, on the face of it, no basis for exempting it as your husband clearly doesn't need it, and it is not a tool of his trade for the same reason. There is also no basis for allowing your husband a cheaper replacement, again because it is his bankruptcy and he doesn't need it.

 

This leads you to look at who actually paid for it. The registered keeper can indeed be different from the owner.

 

Was the car originally bought on credit? If yes whose name was the agreement in? How was it paid for? If from a bank account, whose? If it was a joint account was your husbands's car also paid for from it? If funds from a credit card were used, in whose name was the account held? Whose name is / names are on the insurance? If everything was done from joint accounts in joint names, in what proportions of income paid in were your income, his income, and tax credits and benefits? In whose primary name are any tax credit or child benefit claims?

 

Also, according to the Parkers website, how much is the car worth for a Private sale in poor condition?

[Gingerheid]

Gingerheid, thank you so much for the advice. Ironically when hubby returns to work (he has just had an op) this car would be the tool of his trade also.

 

Ok... this is actually yet another fantastic key to the whole thing; your strongest one.

 

You can additionally tell them (Or better still your husband if he is well enough) that even in the event they do not accept the car is yours, he will be better very soon (as I'm sure and hope he will be), that he will be looking for work and has a reasonable chance of finding it (which I'm sure he has), but that he will not have a reasonable chance of finding work unless he has use of a motor car (which from what you say he wouldn't, but you need to explain why).

 

Perhaps a few details to confirm this for them, and that should then be pretty much the end of the story.

 

It's easier if it turns out the car is actually yours though; that obviously removes the value limit.

 

All the best, and all the best for hubby's recovery from the op!

[Gingerheid]

If the situation remains that it's his car this is a problem you can't get over; the value limit is pretty set in stone and it seems clear they'd make something from selling it and giving you £2k.

 

If you can even make the half the car yours in a legal manner, then of course this is edging well down the road of more trouble than it's worth for them.

[Gingerheid]

Oopsadaisy... that was me too. I seem to have two accounts! Never realised until I saw that was my first post and thought "no it isn't...".

[Gingerheid]

When negotiating the value with the Trustee in relation to the value were there to be a forced sale, keep in mind that it's just haggling, it's not set in stone.

 

The Trustee may find it unrealistic that you would cause too many problems with a forced sale. Half of any loss would be borne by you, and the Trustee may find it improbable that you'd want to lose your own money!

[Gingerheid]

Phone up your OR / IP and offer him £1 and a 1/3 share of any proceeds for the assignment of the right of actions in the case.

 

The role of the Trustee is to deal with all assets, so an IP appointed to replace the Official Receiver as Trustee will be dealing with everything.

 

It's likely the suggestion isn't really possible though, unless the bank charges exceed the amount owed to the creditor that charged them. Anything any less and they would just exercise a right of set off, reducing their debt and their claim in the proceeding. This is probably why the IP will regard the exercise as pointless. There's no benefit to you in reducing their claim in the proceedings unless creditors are going to be paid off in full and a surplus returned to you.

[Gingerheid]

Yes. But in these circumstances it may be much better to sell the house yourself with the trustee's agreement, ideally before the year from the date of the bankrutpcy was up. You are much more likely to care enough to make sure you get a sensible price...

[Gingerheid]

Hello

 

A year doesn't seem like that long ago! However I can't remember the exact details of the story, do forgive me for vagueness!

 

The way the property market is going a delay may be no bad thing in terms of seeing any value in the house diminish (if you want to keep it to actually live there that is!).

 

If it was that you are arguing that your interest in the house is bigger than the 50/50 share suggested by paper, you might want to look at some property auction websites, and see if you can find something similar that has sold in your area, or watch for one selling and see what it goes for. There are vast amounts of property being auctioned these days at prices much lower than estate agents would like to think properties are worth, or even not being sold at all. This would help you with establishing a realistic forced sale valuation.

 

If it was that you are arguing that your interest in the house is bigger than the nil suggested on paper, you might want to suggest that the mortgage will no longer be paid if you aren't going to be able to buy the interest (probably discuss with 'your' IP first to see if he thinks it's a realistic threat). Your husband can say this now that he is discharged, as it won't lead to income available to pay an IPA from (it's too late for that), and as the shortfall won't affect him anyway (it would fall into the bankruptcy, what does he care?), and as if you have no interest it wouldn't affect you either.

Edited June 25, 2008 by Gingerheid

[Gingerheid]

Well, if you're not being told wildly different things, and if you're being told what you're thinking, that's a good thing!

 

Keeping searching property auctions; there's alwaysva house that's been repossessed near you, you just need to find it!