Breach Of Tomlin Order with Trustee

[mic76686]

Hi! I have a tomlin order with a trustee to settle an application made against me regarding a bankruptcy order for a family member. This order was signed in December 2015. I was scheduled to make 3 separate payments and the last payment is due at the end of this month.

I have made 2 of the payments but will be late with my 3rd payment. The trustee has a restriction on my property in terms of the order.

The order states that If payments are not made by the deadline then - all of the payments in so far as they have not been paid shall be deemed a liquidated sum and payable immediately in its entirety and without deduction or set off and interest shall accrue on that sum at the judgement rate from the payment due date to the date of the breech.

It also says I will pay the costs for enforcement.

Can anyone please let me know what will happen when I breach this order? Is it likely that the trustee will take me to court to enforce this order or can I contact the court to let them know?

Thanks
Mike

[nemesis45]

Re: Breach Of Tomlin Order with Trustee

Hi! I have a tomlin order with a trustee to settle an application made against me regarding a bankruptcy order for a family member. This order was signed in December 2015. I was scheduled to make 3 separate payments and the last payment is due at the end of this month.

I have made 2 of the payments but will be late with my 3rd payment. The trustee has a restriction on my property in terms of the order.

*******The order states that If payments are not made by the deadline then - all of the payments in so far as they have not been paid shall be deemed a liquidated sum and payable immediately in its entirety and without deduction or set off and interest shall accrue on that sum at the judgement rate from the payment due date to the date of the breech. *********

****It also says I will pay the costs for enforcement. ********

Can anyone please let me know what will happen when I breach this order? Is it likely that the trustee will take me to court to enforce this order or can I contact the court to let them know?

Thanks
Mike

Good morning Mike, welcome to LB,

You have the answer in **** terms if the order you have quoted above***

You should attempt to contact the trustee and explain why you will be late paying and exactly when you can pay, it will of course depend on the trustee's attitude.

nem

[Unregistered]

Re: Breach Of Tomlin Order with Trustee

Hi Nemesis45,

Thanks for your reply. I have contacted the trustee to confirm when I can pay.

But I would just like to know what the trustee will persue to do legally from the last date of the order according to the terms. Will the trustee go to court to seek an order as I have breached the order? If this is the case then how long could this take?

Also when the order states the amount will be deemed a liquidated sum. Could someone please let me know what this means?

Thanks
Mike

[nemesis45]

Re: Breach Of Tomlin Order with Trustee

Hi Nemesis45,

Thanks for your reply. I have contacted the trustee to confirm when I can pay.

But I would just like to know what the trustee will persue to do legally from the last date of the order according to the terms. Will the trustee go to court to seek an order as I have breached the order? If this is the case then how long could this take?

Also when the order states the amount will be deemed a liquidated sum. Could someone please let me know what this means?

Thanks
Mike

Good morning Mike,

The trustee is able to apply to the court for judgment in their favour immediately and a CCJ would be made.

Immediate payment in full of all outstanding amounts and costs.

nem

[mic76686]

Re: Breach Of Tomlin Order with Trustee

Good morning Nem,

Thanks for your reply. I have a payment I can make within the next few weeks that would bring the outstanding balance down to approx £20k.

If I was to go to court and receive a CCJ do you think the court would allow me to pay in instalments as I have not been able to get a loan for this amount.

Mike

[nemesis45]

Re: Breach Of Tomlin Order with Trustee

Good morning Nem,

Thanks for your reply. I have a payment I can make within the next few weeks that would bring the outstanding balance down to approx £20k.

If I was to go to court and receive a CCJ do you think the court would allow me to pay in instalments as I have not been able to get a loan for this amount.

Mike

Hello Mike,

If you can talk to the Trustee, be upfront/honest on the situation is my recommendation!

nem

[mic76686]

Re: Breach Of Tomlin Order with Trustee

Hi Nemesis,

My deadline to pay the last payment of £74k was yesterday and I did not meet it. Today I have received a Statutory Demand hand delivered to my property for the outstanding amount. The wording is:
Statutory Demand under section 268(1)(a) of the Insolvency Act 1986. Debt for Liquidated Sum Payable Immediately Following a Judgement or Order of the court.

What can I do know? I have already written to the trustee over a month ago to confirm that I will use all the proceeds of my buy to let property that I have on sale at the moment.
This will hopefully complete by the end of this month and I will be able to have £50k from the sale. I have a loan application for the remaining £24k in process but the lender has confirmed they will not release the funds until the £50k from the flat sale is paid to the trustee.

Please you please give any advice I would be very grateful.

Kind Regards,
Mike

[Diana M]

Re: Breach Of Tomlin Order with Trustee

Can anyone please let me know what will happen when I breach this order? Is it likely that the trustee will take me to court to enforce this order

It appears that the answer to your question in your first post on this thread last month is 'Yes' judging by what has arrived today. They've issued a statutory demand.

You only have a certain number of days to deal with this issue which is the first step to petitioning for bankruptcy.

Post up a bit more background to this legal situation.

Di

[mic76686]

Re: Breach Of Tomlin Order with Trustee

Hi Diana,

Thanks for your reply. I am trying to pay of a Tomlin Order that I signed in December 2015 in regards to a bankruptcy settlement for my mother. To cut a long story short my mother was forced into bankruptcy in 2012 by liquidators of her companies. Prior to my mother going bankrupt she sold a property to me in 2010 below market value. The reason it was sold below market value was because the mortgage providor would only provide this product for the sale as I had a bad credit history.

The trustee of my mothers bankruptcy questioned this transaction and wanted to take me to court to persue the property be put back into my mothers bankruptcy estate. I disputed this claim and we made a settlement in court that I would pay the trustee £112k by way of a Tomlin Order in 3 instalements.

I have paid the first 2 instalements. My last instalement was due two days ago. I have written to the trustee over a month ago that I am selling a buy to let property that I have and the sale is taking longer than expected. Im hoping to complete in 2 weks time. This will raise £50k. The remaining £24k will come from a secured loan I am arranging now with a loan provider. The loan provider will only release the funds once the sale has gone through so I have no option but to wait.

I do not dispute that I owe the money as I have signed the tomlin order to say I will pay. I do not want to go bankrupt either.

Is there any way I can ask for more time given the fact that I should be able to pay the full amount within 2 months?

Kind Regards,
Mike

[Diana M]

Re: Breach Of Tomlin Order with Trustee

Is the property in your sole name or joint names (you've referred to there being a 'Restriction' on it)?

Have you sent the Trustee in your mother's bankruptcy evidence of the sale of your Buy to Let property perhaps by the solicitor carrying out the conveyancing stating the anticipated completion date, and also evidence of funds which will be made available from the secured loan (on your home?) such as the loan offer?

I would think it's wise to alert the solicitor who's handling the conveyancing of your BLT property to the situation and see whether the same firm can also deal with the Statutory Demand issue.

Presumably the Trustee has solicitors acting for them?

Di

[mic76686]

Re: Breach Of Tomlin Order with Trustee

Hi Diana,

Thanks for your reply. Yes the property is solely in my name. Yes the trustee put a restriction on the property as part of the terms of the tomlin order. This restriction has been there for over a year. I haven't sent any details over of the sale yet to the trustee so I will do that asap.

Yes the trustee has solicitors dealing with this and they know about the loan application as the lender has already contacted them to confirm how much money they need to remove the restriction.

Okay I will check if the solicitor dealing with the sale can deal with the statutory demand.

As confirmed my intention is to set aside the demand on the grounds the funds would be available asap. Would that be possible?

Thanks
Mike

[nemesis45]

Re: Breach Of Tomlin Order with Trustee

Hello Mike,

If you can talk to the Trustee, be upfront/honest on the situation is my recommendation!

nem

Hello Mike,

You will have to apply to the court for the SD to be set aside you will have to prove that you have or will have the funds to pay off the debt.

You can also show the court that you have attempted to negotiate time to obtain the necessary funds but have been ignored.

nem

[mic76686]

Re: Breach Of Tomlin Order with Trustee

Hi Nemesis,

Thanks for your reply. I will have a shot at applying to have the application set aside.

Kind Regards,
Mike