what reasonable offer would the OR want ?

[Culedude]

My wife and I have recenlty ben made bankrupt on the 12th November 2007.
The question is about the house. At the moment the market value of the house is around the 165k mark, our current mortgage is 118k,leaving equity of around 47k.
I have seen lots of discussion on the forum regarding equity and would like to know what reasonable offer the OR would want. We have a family friend who is able to help us buy the equity. Also could you tell me the timescale involved ie how long does it normally take for the OR or trustee to get in touch. As i have previously said we were made bankrupt on the 12th November and we still havent heard anything from the trustee, in fact I had to ring him regarding tax and he has said that he has only just got our paperwork.
Going back to the equity problem, if I am declared bankrupt when would I be able to apply for a mortgage to pay back the family friend. I presume this is how it works.
Thanks for any help you can give me.

[ianmillington]

Your position is complicated by the fact that both of you have gone bankrupt.

Firstly, both your interests will have to be realised and secondly you will be far less likely to avail yourself of the 12 months breathing space that accrues under the Family Law Act 1996 by virtue of Section 336 Insolvency Act 1986.

Your friend will probably need to come up with an offer commensurate with or better than the amount the OR would realistically expect to receive under any other means. There will be a lower and a higher figure:

Willing sale less outstanding Mortgage and sale expenses

Forced sale less mortgage and sale expenses (which may include costs of getting a possession order (at least a couple of £k)

A sensible offer will be somewhere in the middle.

Hope that gives you some food for thought. As a general principle I would grab the bull by the horns and contact the Trustee/OR rather than waiting for them to contact you.

Ian