UK bankruptcy and judgement made by bank afterwards

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binchy

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Hi I was made bankrupt in Belfast in June 2013 and discharged in June 2014.Most of my assets were in southern Ireland.My query is about one property I used to own.I had a loan from my local credit union for a house that is not finished. Im back living in Ireland again in my old neighbourhood. My house is still unfinished and I enquired about buying it back from the credit union.My first problem is that a certain bank has placed a judgement on this property in December 2013.Is this possible?And secondly the property is still in my name (even though the credit union have been notified by the OR in Belfast)and the credit union have a lien on the property.Is there any way of buying this back?
 
In order to provide guidance I would need the following information:

  • Current market value of house.
  • How much is the credit union owed.
  • What type of "lien" do they have: is a mortgage, solicitors undertaking etc
  • How much was the judgment mortgage for.
  • Has the Official Receiver renounced his interest in the property

Jim Stafford
 
Hi Jim

Thank you for your reply

  • Current market value is €25,000
  • credit union owed €60,000
  • Lien--they have the lien registered with the Property registration Authority(they have the right to hold the property as security until the loan is repaid)
  • Judgement mortgage is for €157,000(the bank also have the judgement on another 4 properties I used to own)
  • Yes,OR has renounced his interest

The bank were informed I was bankrupt before these judgements were made.

Thanks for any help
 
Given that the OR has renounced his interest, you are now the legal and beneficial owner of the site = you are responsible for any public liability claims = you should secure the site and make sure it is safe and you should also consider taking out public liability insurance.

Whilst you are the legal and beneficial owner of the site, it is still subject to the credit union charge. In my view, it is not subject to the judgement mortgage, but the bank might argue that point given the circumstances. I have not done a search on any case law on the subject: your solicitors can do that to confirm the position. It seems to me that you have two choices if you wish to try and retain it:

  • Firstly, determine if the credit union are prepared to provide you with a new loan for the market value. If they are, then instruct your solicitors to write to the bank and request them to lift the JM. If they do not lift the JM, then threaten legal proceedings. Given that there is no "value" here, the bank should lift the JM.
  • Ask the credit union to appoint a Receiver and buy it back from the Receiver. In this way you do not have to deal with the JM.

Jim Stafford
 
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