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Old Bankruptcy

Posted: February 1st, 2021, 5:06 pm
by Much2Broke
Hi guys

I need a quick bit of advice. I declared myself bankrupt in 2009 and as my home was in negative equity I was allowed to remain in it. The problem is now that I am on an interest only mortgage that will soon be coming to the end of the term and need to sell my property to be able to pay it off. I know that a bankruptcy restriction has placed in the title register that prevents me from selling. So what I'm really trying to find out is what my options are if I can't stay and I can't sell.

Thanks.

Re: Old Bankruptcy

Posted: February 2nd, 2021, 12:09 am
by cavebat
Can I suggest having a look at https://debtcamel.co.uk which is the website of the Fool who used to advise on the Dealing With Debt board on the old Fool site?

Re: Old Bankruptcy

Posted: March 14th, 2021, 7:07 pm
by smilingpolitely
Since 2002, a trustee in bankruptcy only has 3 years to deal with a bankrupt's home. If the trustee does not take any action, the property automatically reverts to the bankrupt.

First check that the restriction is still on the title. If it is, contact your trustee asking him/her to consent to its removal.

Re: Old Bankruptcy

Posted: March 14th, 2021, 7:13 pm
by Lootman
smilingpolitely wrote:Since 2002, a trustee in bankruptcy only has 3 years to deal with a bankrupt's home. If the trustee does not take any action, the property automatically reverts to the bankrupt.

First check that the restriction is still on the title. If it is, contact your trustee asking him/her to consent to its removal.

Yes, I thought that the whole point of a bankruptcy being discharged is that the restrictions, debts and claims go away, and the bankruptee gets a fresh start. Any debt that went uncollected is written off and the creditor is out of luck.

It would be very odd if someone was condemned to live in the same house forever because of a stale written-off debt.