After bankruptcy

[Simonbanks]

After making someone bankrupt how long does the OR realistically take to access and distribute from assets?

According to the first report their is plenty to go round but most of this is retained within property.

I am aware that if kids live at home (they do in this case) the house can’t be touched for a year but I am also aware of his monthly income and outgoings from a court application he made. Seems he regularly spent hundreds a month just in the pub and I can’t believe that this is considered a ‘necessary’ expenditure.

So I guess my question is whether the OR will start to take monthly amounts as well as waiting on the house to start paying back creditors and if so when, otherwise the builder won’t really feel or see any difference to his way of living and to all intents and purposes it won’t impact him, at least not yet.

I have never done this before so I apologise for all the questions as I am just trying to learn as I go

thanks in advance

[atticus]

Prepare for a long wait. If there are minors resident in a jointly owned property it will be a long time before the house is sold.

[Simonbanks]

Prepare for a long wait. If there are minors resident in a jointly owned property it will be a long time before the house is sold.

Hi, yes I appreciate that, but there was more to my question re his monthly income, so do you know what happens with this?

[atticus]

The OR can seek an income payments order.

[Simonbanks]

The OR can seek an income payments order.

Hi, again I appreciate this but when are they likely to do this as bankruptcy only lasts a year. If nothing is set up for lets say 10 months, and then an IPO is raised, this will only in essence need to be paid for 2 months, then bankruptcy is discharged!!

[atticus]

Are you in communication with the OR?

[Simonbanks]

Are you in communication with the OR?

I have provided a proof of debt on their request, and have been contacted to be advised of the debtors assets.

[atticus]

Have you shared the information you have? Have you made suggestions? Have you asked what he is doing?

If not, why not?

[Simonbanks]

Have you shared the information you have? Have you made suggestions? Have you asked what he is doing?

If not, why not?

yes I have

[Missimaxo]

IPAs and IPOs usually last for 3 years from the date they are agreed whether that is month 1 or month 10 of bankruptcy. They can be varied if the persons circumstances change. With regards a property, if there is equity it is possible that a private IP trustee will get appointed to deal with it, their fees can be astronomical to be honest. Quite often the creditors see very little return as the first thing paid from any assets are the fees. They won’t deal with the equity for 1 year if it’s the family home and by law they have up to 3 years to deal with it, first port of call would be negotiating with any joint owner or family member to try and have the share bought out, which is usually quicker and cheaper in terms of fees. If after 3 years no agreement has been reached then the trustee/ OR can apply to court for a sale of the property but this will cost more in fees so in turn less to creditors. If there isn’t enough equity to warrant this action then they will place a charge on the property so the equity won’t be realised until the property is eventually sold.

honestly I wouldn’t be expecting any significant return on what you are owed quickly, it will take a long time. You should receive annual reports to creditors and receipts and payments accounts (after the first year) telling you what has been realised, what fees have been charged, and any distributions to creditors.

[Simonbanks]

Thanks. He is still trying to fight this now asking for an oral hearing of reconsideration. It’s futile but he can try. I just hope interest continues to mount on his debt as there is quite a bit of capital in assets compared to his debts including likely fees so in the long run it will just cost him even more.