mortgages for bankrupts repossessions and right to buy

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The official receiver/my trustee has written to me asking whether or not I want to buy back my share of the matrimonial home. Is this right?

Once a bankruptcy order has been made against you, any interest that you have in a property will vest in the Official Receiver/Trustee. If therefore you owned a property jointly with your spouse you will need to buy that share back.

What is the 'use it or lose it' principle?

From 1st April 2004 when the Enterprise Act came into force, the Official Receiver/Trustee has three years from 1st April 2004 or from the date that the bankruptcy order was made [whichever is the later] to realise their interest in your property or they lose their right to it. This means that where there is any equity in your share of a property, the Official Receiver/Trustee will take steps to realise it. If they do not then they will lost all rights over it after three years.

There is only a nominal value to my share of the matrimonial home. Is it worth trying to buy this back?

Although there is now a time limit on the Official Receiver/Trustee of three years in which to realise their interest in your property, with the average value of a house in the UK currently at nearly £200,000, it only takes a small rise in house prices to increase the nominal value of the Official Receiver/Trustee's interest. In cases where there are no assets of any value and negative equity the case will be dealt with by the Official Receiver. The Official Receiver will normally 'sell' his interest in your property back to you for a nominal sum of say £100 together with his legal costs. Many people have found out, to their cost, that ignoring the offer received from the Official Receiver to purchase for a nominal value ultimately cost them tens of thousands of pounds, as property prices rose by in excess of 10% per year.

What can Mortgages For Bankrupts do for me?

At Mortgages for Bankrupts we have helped discharged and undischarged bankrupts buy back their home for a fresh start. In most cases either we or the specialist brokers we use will negotiate directly with the Trustee on your behalf. In many cases we have secured a reduction in the level of the sum claimed and/or negotiated a reduction in the level of fees and disbursements claimed by the Trustee. Our initial consultation is free.