I declared myself bankrupt in August 2010, losing 1 of my properties in the process, but still living in another with negative equity. I've just put all the papers in to the land registry to get the title deeds back in my own name but before I can do this I needed confirmation from a solicitors who had an Interim Charging Order in order to do this. This was there response:"Thank you for your email. You have not informed me of the nature of the proposed disposition and have, therefore, not complied with the requirements of the Restriction. Please provide details. I look forward to hearing from you."I've obviously contacted the OR who said they would respond in 5 days, but I'm concerned.A final charging order was never granted or a date set for an hearing as they (the company with the interim CO) got a Final Charging Order on the property I lost. This was not the sole reason for the bankruptcy and I was told by the OR and by other IP's that the Interim Charge would be part of the bankruptcy.Can someone please advise? Thank You
Province/Country relating to question : UK - Leicestershire
Hello,I will do my best to help you with this.In losing the other property, has that discharged all debts to creditors?
Hi John,No the property was repossessed. It wasn't rented, in negative equity and I couldn't keep up repayments on it.They originally got an interim charging order on the property in question, then an interim and final charging order on the property I lost. At that point I declared myself bankrupt to consolidate my position at that stage.I obviously took advise on all this and was assured by 2 IP's and the OR that the interim charging order would be dismissed in the bankruptcy as it wasn't final and there had been no application to make it final.This came out of the blue today when I received the letter from the land registry and its a hassle I really don't need after just getting everything back on an even keel.I would appreciate any help you could give.ThanksSteve
Hi SteveWho has the benefit of the interim charging order please? I am thinking about whether it follows that making yourself bankrupt means that the interim order will be dismissed.
Hi John,It's a solicitor firm on behalf of an individual for a civil case 10 years ago - and that's another story all together lol.Just want all this over and done with lol and my flat back. All I've done is follow the advise I've been given by people who should know.Thanks
SteveI have checked the Insolvency Act. It is correct that, as the order was not made final, it should now be discharged. It is hard to understand why it has not been made final for all these years. As I understand it, Steve, there is not going to be any disposition of the property. All you wish to do is remove the charging order and have the restriction on sale lifted. It should be enough, for you to achieve that, if you explain to the Land Registry that you have now been made bankrupt and that the Insolvency Act provides, in those circumstances, that any interim orders which have not been made final, should be discharged. It follows that the restriction, which is based on the charging order, should also be removed. John
John, That's great and has really put my mind at rest waiting for the OR to get back to me. Reading many threads regarding this I have a sneaky suspicion that the OR may not have informed the person with the interim charge as when I spoke to them today,it appeared all new and they wanted to see my bankruptcy order. It was only after I produced that and the letter from the Land Registry they sent me that response which threw me a little. Would I now be best to reply to that message? With what? or wait for the OR and maybe go straight through the Land Registry?Really appreciate your help and will make payment with thanks.Steve
SteveThere is no reason not to respond to the email. Perhaps you could say that there is no disposition of the property but that, since there was no final charging order and a bankruptcy order has now been made, you understand that the result is that the interim order will be discharged and that it follows that the restriction will then also be removed. Also let him know that the OR will be in touch. All the best with it SteveBest wishesJohn
Solicitor and Advocate
Hi John,Absolute nightmare. This goes from bad to worse. I've just received the copy from the solicitor attached showing a final charging order was made on the property a month after the interim order.I never received any notification of this to attend court, I never received this document from the solicitors, court or the land registry and it doesn't show on any of the land registry documents I've ever had in my possession.I'm at an absolute loss and cannot honestly believe this is happening.If you have any help or advise it would be much appreciate. More than happy to pay for this advise, but not sure how at this stage after already making a payment.ThanksSteve
Hi SteveI'm sorry to hear that but don't panic. If you were never served with notice of the final charging order hearing, then the final charging order was not validly obtained. You will need to apply to the court to have the order set aside/discharged on the basis that it was never served.This is something the OR will be able to help you with so please raise it with him. In terms of a further payment for this advice, once you are happy, if you click ACCEPT again your card will be charged.BestJohn
Hi John,No never received anything an obviously checked all debts and the implication of them leading into the bankruptcy. Again I've just purchased the land registry for my property as I did before the bankruptcy and here again are the findings:B: Proprietorship RegisterThis register specifies the class of title andidentifies the owner. It contains any entries thataffect the right of disposal.Title absolute1 (06.01.2005) PROPRIETOR: STEVEN BOOTH of Flat 2 Berridge House, 8Millstone Lane, Leicester LE1 5JN.2 (06.01.2005) The price stated to have been paid on 6 December 2004was £155,000.3 (06.01.2005) RESTRICTION: No disposition of the registered estate(other than a charge) by the proprietor of the registered estateor by the proprietor of any registered charge is to be registeredwithout a written consent signed on behalf of Grandteam Limited byits secretary or conveyancer or without a certificate signed by aconveyancer that the provisions of clause 2.11.2 of the registeredlease have been complied with.Page 2 of 3B: Proprietorship Register continued4 (06.01.2005) RESTRICTION: No disposition of the registered estateby the proprietor of the registered estate, or by the proprietorof any future registered charge, is to be registered without awritten consent signed by the proprietor for the time being of theCharge dated 6 December 2004 in favour of The Royal Bank ofScotland PLC referred to in the Charges Register.5 (22.07.2008) RESTRICTION: No disposition of the registered estateis to be registered without a certificate signed by the applicantfor registration or his conveyancer that written notice of thedisposition was given to Scott Paul Adcock care of Geoffrey LeaverSolicitors at 251 Upper Third Street, Central Milton Keynes, MK91DR being the person with the benefit of an Interim charging orderon the beneficial interest of Mr Steven Booth made by the MiltonKeynes County Court on 10 July 2008 under claim number 5MK04784.6 (28.07.2010) BANKRUPTCY NOTICE entered under section 86(2) of theLand Registration Act 2002 in respect of a pending action, as thetitle of the proprietor of the registered estate appears to beaffected by a petition in bankruptcy against Steven Elliott Boothpresented in the Leicester County Court (Court Reference Number885 of 2010 ) (Land Charges Reference Number PA 110615/10 ).7 (29.07.2010) BANKRUPTCY RESTRICTION entered under section 86(4) ofthe Land Registration Act 2002, as the title of the proprietor ofthe registered estate appears to be affected by a bankruptcy ordermade by the Leicester County Court (Court Reference Number 885 of2010) against Steven Elliott Booth (Land Charges Reference NumberWO 111197/10).No disposition of the registered estate is to be registered untilthe trustee in bankruptcy of the property of the bankrupt isregistered as proprietor of the registered estate.C: Charges RegisterThis register contains any charges and other mattersthat affect the land.1 (06.01.2005) REGISTERED CHARGE dated 6 December 2004.2 (06.01.2005) Proprietor: THE ROYAL BANK OF SCOTLAND PLC (Scot. Co.Regn. No. SC90312) of Mortgage Centre, Royal Bank House, CartsdykeAvenue, Cartsburn East, Greenock PA15 1EF.3 (03.06.2009) Equitable charge created by interim charging order ofthe Leicester County Court dated 7 May 2009 in favour of BabyBottles Wholesale Limited.NOTE: Copy filed.End of registerAs you can see no final charging order!!Can you shed any more light on this from this or let me know where I may stand as the solicitors do have a final charging order, but I was never given chance to appeal it and it was never for whatever reason added to this?Thanks again.Steve
SteveThanks for the information. Please bear in mind that, first and foremost, the final charging order is obtained in paper form from the Court and stands without need for further registration. The notice that is given to you is by post to your address, in advance of the final hearing. Registration of the final charging order is something different. That is done in order to notify any potential buyer of the property that someone else has an interest in it. A restriction is placed on the register in order to actually prevent a sale to an interested buyer, other than with the consent of the charge holder. In your case here it may be that the final charging order was obtained but that it was thought that there was no need for further registration or that the firm made a mistake in failing to register. Again, I don't think you need to panic. You will stand a good chance of having the order set aside and the OR will help you pursue this. BestJohn
Thanks John,The solicitors in question were on the phone to the Land Registry in Leicester yesterday with regards XXXX, XX maybe a mistake has been made? At my expense by the looks of thing as I would never have held onto the property if I knew this was the case.Spoke to the OR this morning and forwarded them all the relevant information but they didn't seem very helpful?What would you recommend? See what the OR have to say then see a specialist solicitor? Thanks
Steve, Yes, see if the OR wishes to help with setting the final charging order aside on the basis of failure to serve notice of the hearing. If not, Irfan Munir at MWG solicitors may be able to help you with this. John
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