Bankruptcy Advice

Trustee in Bankruptcy Advice and News From Antony Batty & Co, London

Trustee in Bankruptcy cases with Investment Properties. The Practical and Legal Considerations

Here at Antony Batty & Company LLP, our insolvency practitioners are seeing more Trustee in Bankruptcy cases which include investment properties. Our experience is that such cases are far from straight forward and that great care needs to be taken by the Trustee in Bankruptcy.  In this article we give some bankruptcy advice which summarises some of the practical and legal considerations that need to be considered in such cases.

See our infographic detailing the appointment and role of a Trustee in Bankruptcy.

Practical Considerations for Trustee in Bankruptcy Cases with Investment Properties

If you are looking at a long-term rent collection strategy, then you need to be mindful of any deadlines to redeem the mortgage and consider whether Capital Gains Tax will be payable, as an expense of the bankruptcy, in the event of any disposal.  The Trustee is liable to account for income tax in respect of rental income received, via the bankrupt, and needs to make an allowance for payment of the same.

What you might sometimes have to consider is whether the mortgage is paid by the Trustee.  The Trustee isn’t obliged to make payment, but obviously the mortgagee may well end up appointing a Law of Property Act Receiver to collect the rent on their behalf if it hasn’t.  This means that the Trustee is unlikely to be left with any future recovery from this property.

Legal Considerations

Bankruptcy Advice: Trustee in Bankruptcy cases with Investment Properties – Our Conclusion

When giving bankruptcy advice, our insolvency practitioners have found that these bankruptcy cases are far from straight forward and require the Trustee in Bankruptcy to be flexible in managing the competing interests of the Trustee, mortgagee and tenant.

You have to have an agent you can trust to assist with the management of the property and ensure that it is maintained to comply with the legal requirements of the Landlord and Tenant Act.  Finally, you hope you have a good tenant who engages with the Trustee.

For bankruptcy advice, please contact or call our insolvency practitioners in London on 0208 088 0633. The initial meeting is FREE of charge.

 

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