I currently have a dmp set up but after still being charged interest and struggling with my bills my wife and i belive that bankruptcy would be best for me.
The only issue we have though is the house and the money we owe to my wifes mother.
My mother in law remortaged her house and lent £30,000 to us for our deposit for our house and we pay her mortgage payments. It is a joint mortgage for my wife and i. The value of our house is around about what our mortgage is so we might have a small amount of equity or we might be in negative equity.
The questions i have are as follows:
1) How much equity do i need for the OR to force a sale 2) If i get a valuation now for my house and decide to go bankcrupt because i am in negative equity can this valuation be presented to the OR or does it get revalued after my bankruptcy 3) Will any of this affect us paying my mother in law for the deposit she lent us. Will she own any part of our house for lending us the money even though nothing was signed? If so could this help us keep our house?
1) usually the OR wont go for a sale until there is £10,000 of equity (your share). remember though that unless you buy it back the equity owned by the OR may increase in value during the bankruptcy.
2) The OR will accept valuations that are done within 3 months of the selling back of the equity so it is best to wait until the OR is ready to do the deal.
3)did she get a charge on the property. if not it is an unsecured debt and she has no rights over the property. The problem as i see it is the OR will likely not allow the repayments to the mother to be included as essential expenditure on the SOA, if it is an unsecured debt
If your mother-in-law remortgaged her house and got the loan in her name, then this is her debt not yours and you will not be allowed to keep up the payments to her in bankruptcy
hi what we really mean is that if you have a surplus over £100 the OR will take between 50 and 70% of it. this leaves little to use to pay her back, what you do with the pat you keep is up to you though
HelloI currently have a dmp set up
Posted - 06 March 2010 : 20:19:09
