I have a 2nd charge on a property and the present owner has gone bankrupty

[smothershaw]

Could any please advise, We were ment to have a charge placed on a property, 10 years ago, but apparently the solicitor forgot to do this at the time, we have proof that he was meant to do this and beleived until recently that this had been done. The ex then increased the mortgate and we are now also being told by the socilitor that the 10% charge is only on the Net Profit not the price the house was sold for and that we would only get 10% after the bankruptcy costs are paid and of course the mortgate which I understand is the first charge. Is this true, or as they made such a mess 10 years ago, are they trying to get out of paying us any money. Any advice would be helpful. Thank you.

[Count-A-Strong]

According to Professor Stanly Unwin going bankrupty on a mortgate can lead to penalities of the judicicals which can be a serious mandaterry lifeterm. I would seek the help of a respected bannister.

[themas]

It's not clear from your query whether you do in fact have a charge at all. However, whether you do or don't what happens now the owner is bankrupt depends on a number of factors. It can become quite complex. If you have a charge you need to decide whether you are going to rely on the security of the charge or abandon it & prove your debt in the bankruptcy. If you don't have a charge you have to prove your debt in the bankruptcy.

It would be a good idea for you to talk to the Official Receiver dealing with the case. The solicitor will quite likely not be involved in deciding how much (if any) money you get. I think the situation is possibly that if you rely on your security (assuming you have a charge) & are able to get an order for sale - or the mortgage lender gets one - then you will be paid after the mortgage lender is satisfied before the bankruptcy estate becomes involved. I'm not sure about this - you need to get it checked.

If you do not have a charge then you rank just the same as other non-secured creditors. If that is the position & you lose out as a result you might be able to make a complaint against the solicitors for their negligence.

[smothershaw]

thank you for your advice, will go down the last para route, as have proof (oringal letter from solictor 10 years ago) stating they were going to place on the charge as instructed by the courts, but have since found out they did not do their job.