is there a limit on the equity

[garmag]

is there a limit on the equity that can be purchased by a relative when declared bankrupt.my O R says it has to be below 12k but i have not read this anywhere

[MelanieGiles]

Hi there

There is no limit on the equity that can be purchased by a relative. I do not understand what the OR means - are you sure that this is what they said?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

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[garmag]

Yes every time i have mentioned the property he has said as long as the agent employed by them to value our house says it is below the 12k equity then we can buy it out but if its above that limit then we have to move out.it is strange that the official receiver is addament that the maximum equity allowed is 12k.my property is mortgaged for 195k approx and i purchased for 203k therefore if i can only go 12k in equity then in a yr my property has to be below 207k now.
has anyone heard of this before?i am realy hoping the OR is wrong because we are in the fortunate position that if northern rock allow us to stay in our property (as we have not defaulted ever on our mortgage with them-although they are our largest creditor on an unsecured loan) then my father-in-law has offered to pay the equity for us.any other views or help would be appreciated

[carlmcmullen]

How strange.....

I have never come across this before and i to can not find any legislation that states this.

There is no maximum. The OR's job is to maximise realisations, and should there be £20k equity in the property and your father in law offered to purchase this for £20k or even slighlty less, then it is in the OR's best interests to accept this offer - what is his other alternative, force sale and put on the open market, pay solicitor fee's, estate agents fees and might not meet the asking price and do the creditors out of money.... I think not.

You need to get some clarification on this as i belive there may have been a misunderstanding.

[MelanieGiles]

Sorry Garmag - but you are definately misunderstanding the OR's position. There is no limit on the amount a family member could pay for your beneficial interest in the property. Can you get the OR to put his position in writing as this may be a little clearer.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[garmag]

Thanks for your response.i realy am bemused why i am repeatedly told this but i will definately challenge this supposed ruling.i did question it at the interview because if house prices in the south of england have risen it wont be by much over the last ten months and like i said there is only a 3k amount left to put me over the 12k limit and i bought up the facts that there would then be a lot of fees to pay out of the equity which would almost definately make the or"s profit less than what they would get if the equity was bought by a relative now but i was told again that there has to be a limit.
i will be speaking to them tomorrow for more information on this matter but from what you are saying i am hopeful that we can keep our house as long as the equity that the OR decides is paid regardless of what the amount is.would i be right to think this way?

[Adam Davies]

Hi
Please let us know how you get on with this point.
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[garmag]

Hi,i have spoken to my official receiver again today before he leaves his job.He is still standing by what he said but to be honest his explanation of why confused me even more.It was basically that if the preperty equity was less than 12k then we had the option of someone buying the beneficial interest but if it was over the 12k mark then it had to be sold.What i have realised today is that i beleive he does not realy have a clue what hes talking about.
Upon further investigation today and various phone calls to people including the insolvency service helpline,i am repeatedly told that there is no limit as i have been told on this site so that is what i beleive to be true and i am just going to wait for further correspondance from the OR and take it from there so thankyou to the people that posted replys to my question it realy helped.

[MelanieGiles]

The gentleman at the Official Reciever's office is telling you absolute rubbish. The next time you call (and I suggest that this is first thing Monday morning) insist on speaking to the Office Manager and if they will not speak to you the Official Reciever himself.

I suspect that what this obviously junior member of staff is trying to tell you is that when equity reaches a certain level, the OR's office will no longer deal with the case but it will be referred to a private sector insolvency practitioner. If this happens, at least you may gain a better understanding of what the correct procedure is.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Adam Davies]

Hi
I have asked a contact in The Insolvency Services to clarify this point and will post back when[and if] i receive an answer
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp