Here is an example of somebody who owned the property and went bankrupt. After a three-year period they were evicted from their property and the property was forcibly sold.

XX XX 2012

Dear Sirs

XXXX – In Bankruptcy
Croydon County Court No. XXXX

I was appointed Trustee in Bankruptcy of the above on 3 May 2011 following a Bankruptcy Order on XX XX 2008 as a result of a creditors petition presented to the Court on XX XX 2008.

I now enclose my final receipts and payments account in the above matter and present my final report as follows.

Receipts and Payments Account

The final receipts and payments account is showing a negative balance of -£1387.00. In accordance with rule 6.137 (2) the Insolvency Act 1986, I have reconciled the accounts with that which is held by the Secretary of State in respect of the bankruptcy.

Assets

Interest in Property

The debtor held the sole interest in a property at (address). The Official Receivers agent valued the property on a drive-by basis at £315,00. However, local agents we assess the valuation to be in the region of £280-300,000 following an internal inspection. The property was subject to a mortgage in favour of Acenden in the region of £268,500.

Lawyers were instructed to assist with the eviction of Ms XXXX in order to octane vacant possession in preparation for the sale.

Initial offers were disappointingly only in the region of £250-260,000 but that’s eventually an offer of £285,000 was received. However, following the cost of sale and eviction they were still shortfall to the charge holder and I was therefore unable to accept the offer without first negotiating with Acenden. The negotiations resulted in Acenden approving the cost of sale and accepting a shortfall in order that the sale could go ahead,

Petition Costs

Preferential Creditors
I have not received any preferential creditor claims.

Unsecured Creditors
I received 8 unsecured creditor claims totalling £19,895.95

I have not sought to agree any class of creditor claims as there are insufficient funds with which to pay a dividend.

Trustees Remuneration

My fees as Trustee for administering the bankruptcy was approved at a meeting of creditors held on XX XX 2012 on a time cost basis over time spent by myself and my staff. Time costs incurred totalled £13,160 and although I have not received any remuneration from the Bankruptcy estate, I have received £7500 from sale proceeds which was agreed by the charge holder in respect of costs incurred dealing with the possession and sale of the property.

The balance, together with any further time expended on this case, will be written off upon closure. The time spent to date is shown on the attached analysis,which includes current billing rates.

With regard to the resolution on fees, guidance notes issued by R3 can be found on the R3 website on the following link:- http://www.r3.org.uk/index.cfm?page=1591 selecting Guide to Trustee in Bankruptcy Fees. Alternatively please contact this office should you require a copy.

Final Meeting of Creditors

I enclose notice of the final meeting of creditors, at which this report will be presented. It is not necessary for you to attend the meeting unless you wish to do so. If it is your intention to attend please advise me at your earliest opportunity. Alternatively there is a proxy form attached for you to complete and return.

Here are the actual letters regarding the Trustees involvement in the Bankruptcy:

If you own a property, you stand a damn good chance of loosing it if you go bankrupt. TAKE ADVICE! Some companies will tell you that your property will be protected, then down the line you will be forced to sell it.