VIC Bankruptcy and Property Caveat - Do We Stand a Chance?

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21 April 2016
My husband has just been released from bankruptcy. We have a joint property.

3 years ago, when the bankruptcy commenced, the trustees asked me to pay 50% of the equity in the home to "buy out" my husband's share or they could sell the home. It was a small amount as we had very little equity then. They also placed a caveat on the property.

I replied to them in writing and stated my intention to buy them out but proposed a payment plan which I clearly set out. They replied saying they would get back to me with an answer. Weeks went by and no reply, so I called and left a message. No call back. I didn't chase them again.

Now 3 years, later they are telling us because no deed of agreement was drawn up, we are now liable to pay them 50% of the equity in our home at the current market rate (about a $200K increase in value). They have asked local agents for a kerbside valuation.

We paid them an admin fee of $2500 to manage the bankruptcy and have paid them money over the years when my husband has been over threshold, tax returns etc. He only declared bankrupt for just under $40K. Now they are saying we need to pay them around $75-$100K (still waiting on the valuations) to get my share of the house back and the caveat removed. I have the email from 3 years ago clearly asking them to advise of next steps.

Do we stand a chance?