mortgages for bankrupts repossessions and right to buy

FAQS | page 1 | page 2 | page 3 |

WHAT DO I NEED TO DO TO GET MY DISCHARGE?

If you have been bankrupt for more than six months we always suggest that you telephone the Official Receiver and ask whether or not you have yet obtained your discharge and if not whether they are considering an early discharge. Once you have received confirmation that the Official Receiver has given you your discharge then you will need to contact the court dealing with your bankruptcy and pay them a fee of £60 to obtain your certificate of discharge. Most mortgage lenders will require sight of this before they will give you a mortgage.

THERE IS ENOUGH EQUITY IN MY SHARE OF THE HOUSE TO REPAY ALL MY CREDITORS. CAN I GET THE BANKRUPTCY ANNULLED?

We would always recommend seeking annulment where possible as this will ensure all of your creditors are repaid in full. It is possible to obtain re-mortgages for annulments. In such instances our brokers and the solicitors engaged on your behalf to deal with the conveyancing will also deal with the application to the court to get the bankruptcy annulled.

WHAT IS AD VALOREM DUTY? I HAVE SEEN REFERENCE TO IT ON ONE OF THE LETTERS I RECEIVED FROM MY TRUSTEE

The Official Receiver/Trustee is obliged to pay any monies that they receive from realisations in your estate into the Insolvency Services Account at the Bank of England. As soon as these funds are banked a tax called ad valorem duty, is applied. In effect it is a tax on bankrupts which goes to pay the Insolvency Service’s costs. In certain instances it is possible to circumvent this. This can make a considerable saving to you.

HOW DO MORTGAGES FOR BANKRUPTS GET PAID?

The brokers we use charge an arrangement fee. We are paid by the broker. We therefore only get paid by results. If we cannot obtain a re-mortgage/mortgage for you then we will not be paid.