Robert 'Crab Bait' White consents to losing his houses

[Chaos]

Robert White
Urgent message to my 70 followers.

Is that really all he has after all his time and effort? How sad.

He'd have a few dozen more if he didn't block anyone asking awkward questions.

or if he could afford to purchase more.

[ArthurWankspittle]

I fear the bankruptcy has at long last bitten and reduced him to abject penury devoid even of a living allowance from the bankruptcy practitioners.

Interesting point. If you don't discuss your needs with your receiver presumably he has no obligation to give you an allowance.

[notorial dissent]

But if he did that then he'd have to admit it was really happening and I don't think he can do that and still keep peddling his line of bull. I question that he has 70 followers let alone 70 friends.

[SteveUK]

Can't we have a whip round and send him some REs?

[hucknallred]

Looking at his Lis Pendens, only 1 of his rentals has been sold. Would the OR be now raking in the rental income & maintaining the mortgages I wonder?

[ArthurWankspittle]

Would the OR be now raking in the rental income & maintaining the mortgages I wonder?

If that makes the most economic sense, yes. I expect the OR has a duty of care to the debtors, so the "best" way forward may be to keep the rent rolling in.

[longdog]

I also assume the bankruptcy people will be collecting the rent but that then leaves the question of whether or not they are paying the mortgages.

On the one hand they'll clear the debts that he owes quicker if they don't pay the mortgages but on the other hand they can pay the mortgages, take the left-overs for rent and make some easy money for themselves by doing pretty much nothing for years and charging a handsome fee for doing it. As Bobby's discharge has been suspended indefinitely I don't suppose they're bothered how long they drag it out for.

[notorial dissent]

I would assume that the Receiver has a fiduciary responsibility to the estate to protect and preserve it as best they can, and that would/should include paying the mortgage payments as to do otherwise could end up costing them part of the corpus and should leave them open to mismanagement claims from the debtor. If they couldn't make the payments then they should be selling them not sitting on them. Now, if in paying the estates bills then there isn't anything lest for the debtor then I wonder what happens.

[AndyPandy]

I would assume that the Receiver has a fiduciary responsibility to the estate to protect and preserve it as best they can, and that would/should include paying the mortgage payments as to do otherwise could end up costing them part of the corpus and should leave them open to mismanagement claims from the debtor. If they couldn't make the payments then they should be selling them not sitting on them. Now, if in paying the estates bills then there isn't anything lest for the debtor then I wonder what happens.

What happens with the home property that now has a possession order against it? Presumably, all of Crab Baits properties are under the control of the OR so can this still be repossessed and sold by the bank?

[exiledscouser]

The IP “stands in the shoes” of the bankrupt as if they were him. The banks who lend against property in almost all cases will have the “first charge” registered. They can, at any time exercise their charge and call it in, mostly but not exclusively because of a repayment default.

Their interest if registered before the bankruptcy stands unaffected as is their right (within the terms of the loan agreement, freely entered into by the lender) to seek repossession if those very same terms are breached.

When a bank does seek possession they are usually at the end of a long road. It may ultimately cost them money if the sale costs do not exceed the outstanding mortgage together with all the ancillary costs, estate agents, auction houses etc.

Sometimes there will be significant equity as with Neelu so, happy days, everyone gets paid.

In Crabby’s situation choosing not to keep up repayments on his loans would lead to repossession but it’s clear that the IP has got a grip on both the tenants and the letting agents so the rental money will be coming his way and the various mortgages will I think be getting paid still.

The IP need only identify those properties he can sell in which there is sufficient equity to meet whatever Crabby now owes. And then sell them and do so at his leisure as every passing month is a payday for him - IP companies are always the first to be paid out of a bankrupt’s estate.

They’ll win in the end despite Bob’s posturing.

[aesmith]

What happens with the home property that now has a possession order against it? Presumably, all of Crab Baits properties are under the control of the OR so can this still be repossessed and sold by the bank?

Making a wild guess Crabbie's stopped paying the mortgage, the IP won't pay it on his behalf as there's no benefit to the estate. Bank will have first call on the proceeds, IP will get any balance. If there's any after Crabbie's pissed around disrupting the sale.

Another wild guess, possibly the one rental property that was sold didn't have a tenant, or wasn't paying it's way. Depending on the figures the other properties may be raising enough to keep bank, property management company and IP happy. I would have thought it would be more efficient to simply sell the portfolio complete with tenants if that was possible.

As for Crabbie himself, it looks like he may have been receiving rental income for something like six or eight months after bankruptcy, presumably without paying mortgages. That should have build up a decent nest egg somewhere.

[Siegfried Shrink]

As for Crabbie himself, it looks like he may have been receiving rental income for something like six or eight months after bankruptcy, presumably without paying mortgages. That should have build up a decent nest egg somewhere.

I am guessing that that should have racked up a few possible offences against the insolvency acts as well.

[exiledscouser]

Crabbie facing new problems. The link is to the Fmotl fails FB page and for those who don’t do faceache, it’s a letter to Bob from Solicitors informing him that an order for possession has been granted for casa Crab.

Oh dear, the final countdown is under way.

[The Seventh String]

Depending on the figures the other properties may be raising enough to keep bank, property management company and IP happy. I would have thought it would be more efficient to simply sell the portfolio complete with tenants if that was possible.

It depends on what the going rate for such properties is. The receiver can make a judgement about any business owned by a bankrupt that the debtor’s are best served by delaying a sale until a suitable buyer can be found. Especially if the business continues to be a trading concern.

There’s probably no great rush to sell. From what I’ve seen Crabbie appears unlikely to be discharged any time soon and the debts seem mostly to be owed to banks or things like council tax rather than impecunious individuals or other small businesses. A receiver isn’t supposed to take an unreasonable amount of time to realise assets but what counts as “unreasonable” is a judgement call and the receiver would have to be acting in a clearly less than competent way to be open to serious legal pressure from debtors.

I had some dealings with ORs on behalf of clients when I was an advice worker and they generally came across as quite professional, reasonable, aware of the “real world” and straightforward to deal with. If you mess a round with them though they have one great advantage over the bankrupt. Every minute spent considering the case, every letter read or sent, every phone call, every meeting, even every paper clip is billed to the assets of the bankrupt. I saw a couple of cases where at sale the fixed assets of the bankrupt realised more than the debts but the bankrupt saw next to nothing of it because they’d “spent” it all by being “clever” and massively increased the OR’s fees. Needless to say they were not happy clients.

As for Crabbie himself, it looks like he may have been receiving rental income for something like six or eight months after bankruptcy, presumably without paying mortgages.

On the face of things that seems possible - and attempting to insert a mate as “letting/managing agent” and rent collector probably hasn’t done him any favours with the receiver on that front either.

[ArthurWankspittle]

Crabbie facing new problems.

Very much oh dear. That's the "if you didn't know about it you will be leaving shortly"/"leave soon under your own steam or we'll arrange your leaving for you shortly" letter. We are down to weeks before things happen.

[hucknallred]

Crabbie facing new problems. The link is to the Fmotl fails FB page and for those who don’t do faceache, it’s a letter to Bob from Solicitors informing him that an order for possession has been granted for casa Crab.

Oh dear, the final countdown is under way.

I hope this appears on a future episode of CPWTIA

[AndyPandy]

Crabbie facing new problems.

Very much oh dear. That's the "if you didn't know about it you will be leaving shortly"/"leave soon under your own steam or we'll arrange your leaving for you shortly" letter. We are down to weeks before things happen.

This is all, now soooo predictable!

I think it'll be well into the New Year before there's any attempt at enforcement of the possession order, along with the inevitable accompanying UTooooob video. This will be followed by the real eviction, with Police involvement and at least one arrest, hopefully, unlike Dean Renshaw Crabbie will keep his pants up! They'll be much gnashing of teeth and cries for the Common Law Court to 'take action.

They're then be the retake of the boarded up property, along with another embarrassing video, a 2nd eviction and arrest, followed by security (with dogs) costing thousands of pounds a week.

They'll be harassment of the Estate Agent, followed by a fire sale auction, then Crabbie will slowly whimper off into sunset, no wiser but certainly a lot lighter in the assets department!

[hucknallred]

We know he's an idiot but maybe not that much of one?
Speculation I know but maybe he knew the game was up before he started his antics? A failed nightclub with huge debts, 10 buy to lets that maybe weren't covering costs?
He's at over 18 months stringing this out, Jimmy one cell didn't last that long after bankprutcy.

I can't help thinking he's got a lot of cash under the mattress safe from the OR.

[notorial dissent]

I'd say from the looks of it that our little Quail is fast running out of time and a place to hang his hat. He's going to get tossed out on his hindermost a t this point and he is going to have nothing left by the time it is all over and done with.

[AnOwlCalledSage]

I can't help thinking he's got a lot of cash under the mattress safe from the OR.

It would have to be a well stuffed mattress and would depreciate. Hiding money is quite difficult nowadays and even if we exclude bankruptcy matters and the Official Receiver, any attempt to repatriate mattress cash to capital and savings would swiftly be dashed by the latest Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017. Any cash amount over £8,800 immediately invokes them and even lesser amounts in non-cash transactions draw suspicion. I had to account for a £2,000 direct transfer to my sister's solicitors to pay a retainer for a domestic violence case. And that's without even looking into the algorithms banks run on accounts in the background.

I don't think he has much left. What we actually have here is a simple case of braggadocio that got out of hand. Like many of these FOTLer idiots, the opportunities to get off the escalator without too much damage have been many, but they are compelled by hubris to hang on until they lose everything.