Portland Business & Financial Solutions The way forward, made brighter

Stephen Thomas Sleep

I have recently passed the anniversary of my appointment as trustee of the bankrupt’s estate on 25th February 2016 and therefore I am providing creditors with an update as to the progress during the bankruptcy.

The principal asset in the estate is the debtor’s freehold property which is solely owned by him.  Following my appointment, I arranged for a local agent to provide me with a valuation, however they were unable to view the inside of the property and therefore only a desktop valuation could be provided.  I also obtained a redemption figure from the mortgagor which confirmed that there was significant equity in the property.

The debtor indicated that he wished to remain at the property with his two children that lived with him and therefore I gave him the opportunity to put forward his proposals for the release of the equity.  I also requested that two internal valuations be conducted to establish the true value of the property. 

As the debtor was not in a position to put a proposal for the release of the equity, he agreed to market the property for sale.  To date one offer has been received but was rejected on the recommendation of the agents as they considered it to be much lower than the value of the property.

The debtor has a claim in Electric Light & Power Store Limited, a company which he was a director of. The company was placed in to liquidation in January 2015 and the Official Receiver’s report indicated that the debtor was owed approximately £38,000 in respect of his loan account.  I contacted the liquidator of the company who advised that a claim had previously been submitted for £8,152.  I requested that the debtor provide me with documentary evidence of the exact amount he is owed but this has not been received to date. It is anticipated that there will be a small dividend payable to the debtor’s estate in due course.

During the year I have spent a significant amount of time pursuing the debtor for information.

It is anticipated that there will be a dividend payable to unsecured creditors however the quantum and timing is uncertain at this stage as it will be dependent on the recovery from the debtor’s property and his director’s loan account in the liquidation of Electric Light & Power Store Limited.

Creditors are able to access further information in my annual progress report here

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