Our inhouse insolvency experts provided him relief and explained that the property would be seen as an asset of his Sequestration, however, if he was able to obtain third party funding, he could retain ownership of the property by paying a sum determined by the available equity in his property to the Trustee thus renouncing the interest.

Our team at Middlebrooks submitted the application to the Accountant in Bankruptcy and an award made.  It was determined that there was £26,000 of equity in the debtor’s share of the property following a valuation and collection of redemption statements.

After successful negotiation, a proposal of £12,000 was received.  This was submitted to the Accountant in Bankruptcy and circularised to creditors.  The AiB agreed to the proposals and 3 out of 5 creditors also responded in agreement.  The proposal was therefore accepted.

Our team at Middlebrooks submitted a formal renunciation to the Registrar of Scotland confirming the Trustee no longer held an interest in the property and the debtor was able to reside in the property with his family.

The funds were ingathered from the third party shortly thereafter.

The debtor received his discharge from Sequestration at the first anniversary and the case was closed.  The debtor was then debt free and still owned his home”.