Hi bettertoburnout.

I'm not sure why this distinction is being made. Hopefully Mark, Kevin, Shona or Chris can share any views that they might have on the subject when they next visit the forum.

Can't see how it would make any difference whether the debts were business-related or not. Maybe they are just trying to get to grips with the figures more closely to aid their understanding of the situation at the time. Given that you are relying on the value of assets in the business to prove your solvency then this is fair enough.

Were you in partnership with anyone else, bettertoburnout?

HI,NO I WAS A SOLE TRADER SO ALL THE DEBTS AND ASSETS WERE MINE.

Forgive me if this seems rather familiar . Have you posted on this theme before ?. I to have / are in the same situation , Maybe Mark can use edited extracts from my situation to help you , as it seems very similar . Never the less I will be looking to get my pound of flesh back . As very tired of being a victim and suffering ill health due to this . So will be claiming back , plus interest what was taken from me .[:0]

Hi Pinalta,this has been ongoing for some time now,if you have been in the same situation I'm sure you know how distressing it is.We are dreading the letter from the trustees in case they dispute the figures and we have to go to court.We were due to finish the trust deed this november,but it could drag on for months more now and we have no idea if we are going lose our house or not.We can't afford legal advice as we earn too much,but all our money goes to payments to the trustees.Any advice would be appreciated.

Hi bettertoburnout

After you released the £50k and paid this to your debts, did you have other debts which remained unpaid or did this clear everything?

Mark

Hi Mark,I still had debts of around £25,000 after I paid the £50,000.Most of this was accumulated because I was renting commercial premises and the sub tenant went bust leaving me large debts.The landlords would not let us out of the lease so I was paying rent on empty premises for 2 years.

Hi bb

I still don't get where the Trustee is coming from. Paying the £50k to your debts is not a Gratuitous Alienation. No argument.

Their only 'in' would be the transfer of the property into joint names and therefore the transfer of one half share of the property. If you can show you were solvent, includng the value of your one half share of the property after the transfer, then all routes for a successful action are closed.

Mark

Hi Mark,finally received a letter from the trustee saying they have dropped their claim for gratuitous alienation,after I proved I was solvent at the time of the transfer.We now have to settle the half of the property which my wife agreed to buy out when the trust deed was first taken out.The amount agreed then was £12,000 ,but now they want £16,000 as they say the value of the house has increased.Do you think this is reasonable? Also,if we make an offer of £12,000 are they likely to accept given the alternative hassle,ie reposessing the house and having to market it etc. the house on the market?

Hi bb

Glad it's resolved and you can at least look forward.

It appears to be fairly common where a Trustee will threaten action on the basis of a Gratuitous Alienation in the hope that people will buckle under the pressure.

Re the property offer, it is difficult to tell. However you make a good point as the Trustee would require to raise an Action of Division and Sale to force the sale of the property as your wife retains an interest.

If I was you i would ceratinly make the offer and ask the Trustee to seek the approval of the offer from the creditors.

Mark

Mark

Well done , hope all goes well for you , I'm still waiting on my Trustee to bring it , as I indicated I want to rumble . Standing your ground under pressure is good advice . In particular , when you have the facts to back up your stance , I am still hanging on and I will not give in until they carry me out in a box .[:)]

Hi Mark ,thanks for advice ,I will let you know how I progress.Hi also to pinalta for your encouragement,I hope all works out for you too,and to anyone else in this situation,just don't give in and accept the situation if you know are in the right.

Pleased to hear that you have made some positive progress bettertoburnout. Definitely worth trying to negotiate in repsect of amount needed to buy out equity - after all even if they reject any offers you are no worse off.

Hi Kevin,great news,the trustees have put the offer to the creditors and it has been accepted with no objections.We will shortly be making the payment and hopefully will be released soon.
5 years on it's a great relief to see light at the end of the tunnel.

That is great news bettertoburnout. Congratulations to you.

Kevin isn't currently posting on the site but I bet he's reading this and is also pleased for you.