HomeRemortgaging property to pay Bankruptcy Petition debts

Facing a bankruptcy petition is a stressful time but you still have options to resolve it. Remortgaging could be one option. Speak to one of our experts today to explore whether this is an option for you - and avoid a bankruptcy order being made.

The big remortgage problem

The situation may look impossible to you.

  • You have been working hard to make arrangements to pay a debt and assuring the creditor that you can do that.
  • But it takes far longer than you anticipated to process the borrowing or remortgage and the creditor finally loses all patience.
  • The creditor goes ahead with a bankruptcy petition and a notification of the bankruptcy petition is sent to H M Land Registry.  The bankruptcy petition is registered as a restriction against the property you are trying to raise funds over.
  • You are then told that it is no longer possible to raise the funds with the bankruptcy petition in place.

And then the creditor tells you that they will not dismiss the bankruptcy petition until they get paid….

Resolving the problem – how we help

The above problem is quite common – but can be resolved with our help from our bankruptcy team at FWJ.

It is possible with some careful planning and organisation to raise funds over your home or other property with a Bankruptcy Petition in place.

For example,

  • you may have an outstanding tax bill which you have been trying to pay by raising money over your home but HMRC have proceeded with bankruptcy anyway. 
  • HM Revenue & Customs may well have told you that you need what is known as a validation order but in most cases, a validation order will not solve the problem for you.
  • A lender wants to lend and the creditor just wants to be paid. 

We can help to achieve that for you by providing to all parties the legal mechanism which satisfies the lender to enable it to lend and the Court in dismissing the Bankruptcy Petition where the debt is paid.

Speak to our experts

FWJ are regularly instructed to assist with completion of funding and payment to creditors in this situation and have a 100% record where funding is raised in paying the creditor and obtaining the dismissal of the bankruptcy petition.

If you would like to find out more about how we can help – speak to one of our team. If the call is urgent – speak to the head of our bankruptcy team, Sue Brumby direct.

A very successful outcome. I am delighted with the services provided by Bradley and James.

A bankruptcy client the firm helped achieve a successful outcome for

Key contacts

James Roberts

James Roberts

Partner

Bradley Hopkinson

Bradley Hopkinson

Trainee Solicitor

Sue Brumby

Sue Brumby

Partner

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