| Author |
 Topic  |
|
|
Frank Butcher
Starting Member
United Kingdom
6 Posts |
 Posted - 02 March 2010 : 06:10:24
|
Hi Everyone. We entered our IVA in Jan 09. At the end of Jan 09 I lost my IT job. I was forced to take a job as a building site assistence which was paying 75% less than what I was originally earning Fortuntaly with help from family we managed to continue our full IVA payments untill May 09. We then requested a 6 month payment brake.This was acecpted and payments ceased untill Dec 09, where I was still working as a building site assistant. The 6 month brake was added to the duration of our IVA. Our full payments commenced and again with help from family we met the dec payment in full. I fortunatly got back in to full time IT work on Jan 18 2010. I contacted my IP and advised that we would be making the full payment for Jan 2010, and once I had recieved my first full month payslip we can then arrange a variation to the IVA. We met the full payment in Feb. I contacted my IP yesterday and looking at our current i/c & Exp would only be able to afford 1/6 of what the original IVA amount was. My IP stated that our creditors wouldnt accecpt this. We then re jigged the figures and further cut down monthly o/g and went back to my IP with a higher monthly payment, but this is still only 1/4 of the original IVA amount and he said again that its unlikely that our creditors will accecpt this. It was left that I would again look at our monthly o/g and see if we could trim any further.
After reviweing again its looking like we cant realistically commit any further money to the IVA, and am considering B/R.
Can I ask anyone inc the IPs on this forum if B/R means we will loose our home? Its extremely likely that we are in Negative Equity, and have built up arrears as we have been on half payments for the past 11 months.
Should B/R be the only way forward then so be it, but I hust need to know our home will not be taken away?
any help or advice will be much appriciated
Many thanks
FB |
|
|
gettingoutofdebt
forum expert
2418 Posts |
Posted - 02 March 2010 : 06:47:46
|
If your property is in negative equity then you can buy the BI (Beneficial Interest) from the OR for £1 + £211 fees. You would need to keep up with the mortgage repayments.
If there is positive equity then the OR would want to release this. You, or a relative/friend, could give the OR the positive equity money.
When checking the value of your property make sure to tell the Estate Agent that you want a quick sale as this is the price the OR would use. You can tell the Agent that you are moving to another part of the UK to take up employment, etc. if they want to know why you need a quick sale. |
 |
|
|
Frank Butcher
Starting Member
United Kingdom
6 Posts |
Posted - 02 March 2010 : 08:42:53
|
| Hi there and thanks for the advice. How does the BI process work? without the IVA we would be in a position to pay the mortgage, but I want to understand the BI process before we go any further. Also with regards to getting a valuation on th eproperty is this somthing that we do and provide to the OR and are we duty bound to have more than 1 valuation? |
|
|
|
Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 02 March 2010 : 10:06:34
|
The OR will not be interested in your property if you have negative equity.
You would be offered the opportunity to buy the BI for £211.00 plus £1.00. The ORs solicitor deal with all that is necessary. They are TFT, based in Bristol.
It is a deed of assignment - two pages and requires your signature, the OR and a witness - that is it!!
I would only do it if you can afford the mortgage repayments - otherwise best to let it go.
Good luck, Richard
quote:
Originally posted by Frank Butcher
Hi there and thanks for the advice. How does the BI process work? without the IVA we would be in a position to pay the mortgage, but I want to understand the BI process before we go any further. Also with regards to getting a valuation on th eproperty is this somthing that we do and provide to the OR and are we duty bound to have more than 1 valuation?
"There are no problems - only solutions" |
|
|
|
Frank Butcher
Starting Member
United Kingdom
6 Posts |
Posted - 02 March 2010 : 10:32:25
|
Hi Richard, many thanks for explaining. I have also been told the following
"Your home should be safe if it is in negative equity, but do remember that a Trustee in bankruptcy has up to three years to deal with the dwelling house and is not obliged to accept the quick £1 beneficial interest transfer if they feel that by hanging on to it more money could be made if it appreciates in value".
Whats the likelyhood of the above happening?
Also with regards to household contents is there anything that we would have taken from us?
Thanks again
FB |
|
|
|
Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 02 March 2010 : 10:48:07
|
Hi,
Yes, the OR as Trustee in BR has that power.
However, from my experience, the OR does not get too bogged down where there is negative equity - whilst 3 years is a fair timespan, the way the market is going, it is not likely (Unless the wind changes direction!) for the value to soar to make it an interesting proposition for the OR and your creditors.
On your home contents, the OR wil not be interested in your possessions - unless you have a Picasso...! Normal household effects are of no interest to them.
Hope that this assists, Richard
quote:
Originally posted by Frank Butcher
Hi Richard, many thanks for explaining. I have also been told the following
"Your home should be safe if it is in negative equity, but do remember that a Trustee in bankruptcy has up to three years to deal with the dwelling house and is not obliged to accept the quick £1 beneficial interest transfer if they feel that by hanging on to it more money could be made if it appreciates in value".
Whats the likelyhood of the above happening?
Also with regards to household contents is there anything that we would have taken from us?
Thanks again
FB
"There are no problems - only solutions" |
Edited by - Housing on 02 March 2010 10:48:32 |
|
|
|
Frank Butcher
Starting Member
United Kingdom
6 Posts |
Posted - 02 March 2010 : 14:03:39
|
Hi Richard and thanks again for your advice.
With regards to the BI how does this work. I have afamily friend woh can assist us with this but does this mean they will have the right to the deeds of our property?? its about the only thing I dont understand so any help and advice will be greatly appriciated.
Thanks again
FB |
|
|
|
Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 02 March 2010 : 15:02:53
|
Hi again Frank,
No its is not the deeds that are "purchased."
It is the "equity" (known as Beneficial Interest)that is transferred by a deed of assignment.
It sounds complicated, but is not. In doing this, the OR will not have a claim to force a sale if there is equity in the property.
Hope this answers the point for you. Regards, Richard
quote:
Originally posted by Frank Butcher
Hi Richard and thanks again for your advice.
With regards to the BI how does this work. I have afamily friend woh can assist us with this but does this mean they will have the right to the deeds of our property?? its about the only thing I dont understand so any help and advice will be greatly appriciated.
Thanks again
FB
"There are no problems - only solutions" |
Edited by - Housing on 02 March 2010 15:03:18 |
|
|
|
Melanie.n
forum expert
United Kingdom
1282 Posts |
Posted - 03 March 2010 : 09:05:31
|
Hi FrankButcher - Melanie here not sure whether you remember me, but I spoke at length with you prior to your IVA. So sorry to hear of your present situation, If you want to contact me direct I will help you in any way I can to work your way through this process. My details are at the end of this post Melanie
Melanie Nicholas
29 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
email me at melanienicholas@jonesgiles.co.uk
|
|
|
|
Frank Butcher
Starting Member
United Kingdom
6 Posts |
Posted - 06 March 2010 : 10:03:54
|
Hello Everyone
We have decided that BR is the option for us Have spent all week talking to various people and we are happy to proceed with BR. I understand that to fail our IVA we have to miss 3 consecutive payments in order for the failure to comply certificate to be issued, which is then used to prepare our BR case. I am happy with the process, as I have spent most days and nights! talking to a couple of the experts on this forum. One thing I am not clear about is bank accounts. As we are in an IVA we only have one bank account with the Alliance & Leicester (part of Santander) Santander are one of our creditors, so I know we will have to close the account. I want to open a Co Op Cashminder account now. Is there anything form stopping me doing this, closing the A&L account and using the Co-Op account from here on? We havent missed any of our IVA payments yet so its going to be at least 3 months before we can obtain the non compliance certificate, and then set the ball rolling for BR. I just want to make sure if we ditch the A&L account and start using the Co-Op account now and up to our BR court hearing we wont get in to any complications or trouble
Thanks all and have a great weekend
FB |
|
|
| |
Topic |
|
Please can someone give me advice
