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UK-Justice
UK-Justice, Barrister
Category: UK Bankruptcy Law
Satisfied Customers: 16193
Experience:  Called to the Bar in 2007
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Hello I have a bankruptcy petition against me. I have

Resolved Question:

Hello

I have a bankruptcy petition against me.
I have tried an IVA but its looks like the main creditor (who has the casting vote) will not back it (even though we have done everything they have requested and indeed possibly do.
The court date is in a few weeks time where I would presume an order will be made.

I have a smallish portfolio of rental properties (in my personnel name) and wondered how the process works.
Looking after the properties is a full time job for me as I take an income out of it (my only source at present).

Can the properties be sold even though this would take away my income stream?

As several of the properties are in negative equity would the ones in the black be sold or would the portfolio be looked upon as a whole?

Is it set in stone that a third party could make a contribution to bridge the difference between the mortgage and the equity thus removing the property from the bankruptcy? Or does it depend on the receiver?

Can this third party make this offer before the receiver informs the mortgage company thus relieving the necessity of more incurred costs by the mortgage lending possible instructing their own receivers?

Would the rents be collected? And how would I pay for maintenance, ground rents, service charges, estate agent fees etc.

If you would like me to ask these questions one at a time then please answer the first one and I will leave feedback and then copy and paste.

Many thanks
Submitted: 1 year ago.
Category: UK Bankruptcy Law
Expert:  UK-Justice replied 1 year ago.
Thanks for your question, I will do whatever I can to help you. Please remember to rate my answer SMILEY FACE OR ABOVE.

How much is the debt, when is the petition to be heard?
Customer: replied 1 year ago.

The debt is with a bank and runs into hundreds of thousands.


Simply a development that went wrong and the bank in question should of held and waited but sold the property very quickly and for very little.


It has been adjouned several times and this is the last hearing at the end of the month.


 


Even in good times and selling the properties for max value it would never cover the debt - maybe 15p in the pound

Expert:  UK-Justice replied 1 year ago.
I have a smallish portfolio of rental properties (in my personnel name) and wondered how the process works.

The Official Receiver would then become the owner. It would be a matter for the OR whether to continue to rent the properties out, whether to sell one or more of them or allow you to remortgage to get a loan for the bankrupt amount.

Looking after the properties is a full time job for me as I take an income out of it (my only source at present).

The OR would then consider how much you earn and what steps to take.

Can the properties be sold even though this would take away my income stream?

Yes, this is possible.

As several of the properties are in negative equity would the ones in the black be sold or would the portfolio be looked upon as a whole?

No - individually.

Is it set in stone that a third party could make a contribution to bridge the difference between the mortgage and the equity thus removing the property from the bankruptcy? Or does it depend on the receiver?

Yes, it is a matter for the OR

Can this third party make this offer before the receiver informs the mortgage company thus relieving the necessity of more incurred costs by the mortgage lending possible instructing their own receivers?

Yes they can negotiate direct with the OR

Would the rents be collected? And how would I pay for maintenance, ground rents, service charges, estate agent fees etc.

The OR would deal with all that. Income would come to the OR and he would deal with the estate and any liabilities as a result.

I hope this helps.



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UK-Justice, Barrister
Satisfied Customers: 16193
Experience: Called to the Bar in 2007
UK-Justice and other UK Bankruptcy Law Specialists are ready to help you
Expert:  UK-Justice replied 1 year ago.
I'm just following up with you to see how everything is going. Did my answer help?

UK-Justice

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