Can the bank refuse to sell a bankrupt's house?

Are there any cases in which a bank could refuse the sale of NE properties and hold these throughout bankruptcy or is the release of these properties a must in a bankruptcy case?

In bankruptcy, the Offical Receiver will surrender the property to the bank.

If it's jointly held, it may be sold to the other joint owner.

But the bankrupt will be released from the debt.

Brendan

Tx Brendan

JayPee said:

Are there any cases in which a bank could refuse the sale of NE properties and hold these throughout bankruptcy or is the release of these properties a must in a bankruptcy case?

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I'm not sure exactly what you are thinking, but the whole idea behind the mortgage is that it is secured against the property - you fail to pay or go bankrupt the bank gets the house and it would be the same with any other secured creditors. In addition they would become an unsecured creditor for any shortfall against the remaining assets, but since there are not likely to be any other assets it really does not matter.

Hi Jim, there seems to be a lot of conflicting answers on the question of surrendering the properties. Some say sell before bankruptcy (although this depends on the bank allowing this) some go for allowing the OR to sort it and others go fo volentary surrender. Just trying to figure out best option and why?

I am not sure there is confusion as to what to do-but that there are many options and factors to consider and each case or circumstance is different.

If you are going bankrupt, (If I am not mistaken you are considering this) then it does not really matter whether you sell with the banks permission or just go bankrupt (they get whatever they get) and as you are going bankrupt,what ever the shortfall is, won't concern you.

If you were trying to come to a deal with the bank, without declaring bankruptcy, then it would be better to sell to minimise cost incurred by the bank in selling and to maximise sale price for you (given you will be taking this deficit as an unsecured loan) something that the bank won't really care about.

I am pretty certain that if you search these threads really well and thoroughly using different words/phrases, you will get lots of info to help you formulate the best way forward for you and your own circumstances.

Best of luck with it.

Tx Luter, just seems to be a mine feild out there and even the professional advice is conflicting, just treading carefully atm.Tx again

Hi Jay Pee

In most cases, you are better off trying to sell the house first.

• You will now have only unsecured creditors and it's possible that you will be able to sort out the problem with a very short Debt Settlement Arrangement. So no need to go bankrupt.
• If you are going to the UK, it will be a lot simpler and the Official Receiver will be a lot less interested in you.
• If you are going to the UK, it will probably be better for arguing that your COMI is in the UK.
• In general, you will get more money and this is good for everyone.
• In cases where the mortgage is less than the value of the property, it will be especially important that you maximise the selling price.

If you are staying in Ireland, it may be worth keeping the house and letting the Official Assignee deal with it

• If you have a joint mortgage , the other owner will become fully liable for the whole mortgage anyway.
• If you own the house jointly and if the mortgage is less than the value of the property, the Official Assignee will sell it off to the joint owner, probably at a decent price.

tx Brendan, all advice is helpfull in one way or another and much appreciated

A query- how can you sell the property if the bank hold the deeds? can you force them to release them for sale??

Nope. The bank holds all the cards.

I have actually been told by a solicitor that there are clauses that can force bank to release the deeds