How long does an IP have to prove title

[RayG]

Does a Trustee in Bankruptcy or an Insolvency Practitioner routinely place a caution on any unregistered land or property which a bankrupt claims to have an interest in or is suspected of having an interest in? I am thinking for instance of a case where a person became bankrupt and his trustee registered a caution on unregistered land adjoining his house which he had used informally as a parking area. The case dates back to 1997. The IP in question has slumbered on this claim. How long does an IP have to prove title to such an asset and then to realise it for the benefit of the creditors?

[MelanieGiles]

Hi Rayg and welcome to the forum

A Trustee in bankruptcy should always place a restriction on land which vests in the bankruptcy estate as a matter of course at H M Land Registry.

If the land in question is not deemed to be part of the matrimonial home (unlikely in your case) and title to the land can be proven, there is no timelimit in which the Trustee has to realise said asset, but they would not be acting in the best interests of creditors if they failed to take steps to realise same.

[RayG]

Melanie
Thank you for that reply. This caution has been on the register for a number of years. The IP did try to instruct an agent to sell a few years ago but was informed that the land was in my adverse possession and had been so ever since I purchased the adjoining property. The instruction was then withdrawn. I would surmise that if the IP had any title deeds - which I doubt - he would have applied to the court for a possession order against me. Or do IPs have a habit of sitting on claims such as cautions until land is developed, in order to maximise their potential claim?

[MelanieGiles]

IPs can sit on land if they feel it is the creditors best interests to do so. The best way forward would be to get the Trustee to make a declaration of his/her interest so that you know where you stand.

[RayG]

The IP was sent a questionnaire seeking information as to the nature of their claim but this was ignored. They will not deal with anyone in adverse possession and are not obliged to answer any questions until an application for registration is notified to them. At this point - and not before - they must defend the caution. If they cannot, the application for registration will be completed. The textbook says it is unwise for those in adverse possession to appear to be negotiating with cautioners such as this because the legal basis of any claim in adverse possession is absolute denial of any counterclaims. If you know of any lawyers with practical knowledge and experience of such a case I would be pleased to contact them.

[MelanieGiles]

What part of the country do you live in Ray?

[RayG]

Colchester area

[MelanieGiles]

This firm would seem to come with good credentials. I don't know them personally, but they seem to have a good grounding in insolvency.

http://www.birkettlong.co.uk/people/mod ... w_details/

If you were to consider a firm based in London, I would look at Moon Beaver who have some excellent insolvency lawyers and I could personally recommend Stephen Allinson who would take great delight in challenging your Trustee!

[RayG]

Thanks, you have been most helpful.