Note: You must be registered in order to post a reply. To register, click here. Registration is FREE!
T O P I C R E V I E W
jb6
Posted - 17 September 2009 : 13:29:51 I am just about to file for Bankruptcy my petition is almost completed. I have been advise as I have very little disposable income £230 that this is my best root and a IVA will not be accepted.
I have unsecured debts of £67,000 and since my wife lost 50% of her self employed income we have been topping up the pot every month with our savings which after 10 months are now almost all go and their is no change in our situation.
My question is as follows I have a net salary of £2529 per month plus we get child benefit and Tax Credit ( for two children) this come to £179 so a total of £2708
I have been advised by insolvency.co.uk that if I when Bankrupt and as I have no assets, even thought the House we have is currently valued at £180,000 ( negative equity ) with a Mortgage of £204,000 and a secured loan of £5000. As our Mortgage £1050 and the Secure loan is £162 - he advise me as this is a high amount the Official Receiver or Trustee could and would potentially force a sale - making us rent a property instead to free more disposable income - even though this would also add £30,000 to my Bankruptcy.
Is this true,
Your thought and help are appreciated
5 L A T E S T R E P L I E S (Newest First)
jb6
Posted - 28 September 2009 : 22:16:36 Well thank you for your help - one week to go and am not looking to the process. Thanks anyway
Reviva UK
Posted - 17 September 2009 : 21:19:13 They can ask for an IPA and definately pursue an IPO.
However if the mortgage payments are not too out of step with the rental market then there are other things that can be considered too.
1. The Official receivers handbook gives guidance about high mortgage payments but also advices them - in the same paragraph !!! - that the pursuit of an IPA should not be pursued if it makes somebody homeless.
I have also had some success arguing the following points.
a. If the OR advises someone to stop paying the second mortgage so that an IPA can be achieved this is paramount to giving mortgage advice which they are not regulated to do.
b. By pursuing an IPA in these circumstances this probably causes the debt to increase dramatically so there are some consequences here:- the mortgage company would not be happy because the debt would created by the actions of the OR and there may be a position for the mortgage company to take legal action.
c. By imposing an IPA and causing the house to be reposessed the "bankrupts" would need to find somewhere else to live. Now being bankrupt with a bad credit history would mean that 6 months rent would usually be needed. There are also other costs in moving that would be an issue.
I have met an OR that was shocked when I asked for £8K for 6 months rent and moving costs.
If you believe you have a position then you need to argue your point.
Posted - 17 September 2009 : 21:01:22 The OR will not force a sale, but they can ask for an IPA which will make it impossible to pay the mortgage & secured loan if they think that these amonts are unreasonable
jb6
Posted - 17 September 2009 : 13:52:31 Yes - this is only a three bedroom House in Oxforshire and Rentals in the area start at £850
RHB
Posted - 17 September 2009 : 13:47:05 I think it would depend on if the house has way more space than you need & there are cheaper rental pssibilities. Is that a fair price for the part of the country you live in?
