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luckyone
Starting Member
United Kingdom
35 Posts |
 Posted - 08 May 2010 : 13:22:35
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| Hi we need help,we have just recieved proposals for an iva but realisictly the payments are too high and the thought of struggling for the next five years is weighing us down. Now thinking bankrupcy is the only option but we have our own property and dont really know much about what happens in bankrupcy. We have a suplus amount each month would we pay this into the bankrupcy any help much appreciated.We owe £115.000 on the mortgage and it would probably sell for £120.000 as its needs alot of work. |
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debtinfo
forum expert
2826 Posts |
Posted - 08 May 2010 : 14:21:58
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Since you use the words we, then i will presume that you would both be going bankrupt. When you go bankrupt your beneficial interest (BI) transfers to the Official Receiver. You or someone you know can buy that back for you. If the property is in negative equity then you buy it back for £1. If there is equity then the OR will want something near what it is worth.
What happens if you cant afford it?
Inititally if there is less than about £10,000 of equity then the OR will just put it on the self for 2 years and nothing will happen. They have 3 years in total to deal with it. After 2 years they come back and again see if you can buy the BI. If you cant they will do one of 3 things, if there is still no equity then at the end of the 3 years you get the BI back for free. If there is a small amount of equity they will put a charge on the property. If there is a lot of equity they will apply for an order of sale.
If at the start of the case there is more than about £10,000 of equity then the case will probably be passed to an Insolvency practitioner, who you normally have up to 12 months to come to a deal with before the property is sold.
If you have a surplus income of more than £100 individually then the OR will ask you to pay an IPA which is between 50 an 70% of that surplus
hope that helps |
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kendog
Starting Member
United Kingdom
6 Posts |
Posted - 08 May 2010 : 18:48:10
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sorry to bother you again in so confused getting conflicting advice will we definately lose our house and be forced to sell it if we have any equity in it(this is what we told by an iva company). Then we have been told that you dont have to lose your house im totally confused and not very good with technical jargen any help much appreciated thanks
kendog |
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debtinfo
forum expert
2826 Posts |
Posted - 08 May 2010 : 19:13:58
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basically, if you have a small amount of equity (less than £10,000) and cant afford to buy it then you will have 3 years to find the money, at the end of the 3 years if there is still a small amount oq equity you still wont lose the house just have a charging order put against it.
If you have have more than £10,000 at any point and cant get someone to help you buy it then you will lose the property at some point. In any event you would usually have 12 months before you could be forced out |
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kendog
Starting Member
United Kingdom
6 Posts |
Posted - 08 May 2010 : 19:23:15
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Thanks and sorry for sounding so thisck just totally different advice from people. The iva company told us we would lose the house straight away. I have been advised to get two valuations is this the case
kendog |
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debtinfo
forum expert
2826 Posts |
Posted - 08 May 2010 : 19:54:35
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you mean the IVA company that you will be paying fees to for the next 5 years if you sign up with them? The best thing to do is to get free independant advice from the likes of the CAB, CCCS or national debtline.
It is true that the house will be safer in an IVA, but it isnt automatic that you will lose it in a bankruptcy.
Do get some valuations so you hav more info to make your decision on |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 08 May 2010 : 20:46:12
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Hi Ken Dog
1) In bankruptcy you may loose your house if you have consderable equity in the property,(lots and lots of equity ) even then you would have three years to realign your family. I know many Bankrupts who have retained their house
Kendog can you please confirm that you are also lucky one ?
if so from your information provided you do not have considerable equity, so the next thing is, can you continue to pay the mortgage payments and are they appropriate for the type of property and equivallant rent for the area.. let me explain if you are paying a mortgage of £2000 and you can rent a similar make size and design property for say £500 the Official receiver may elect to ask you to move. (3 years down the road) so to resolve this check on www.rightmove.co.uk, the value of your property and the price to rent a similar property in the same post code.
if you have a repayment mortgage it will be slightly higher then interest only but as long as the price to rent is say within a couple of hundred pounds of the mortgage it should not be a problem you staying put in the same house,
Donna, debt info is correct in suggesting speaking to CAB or CCCS but you probably wont be able to speak to them until monday, no doubt you have already had sleepless nights and are really worried, however I know that some of the experts will take calls over the weekend most if not all will provide the first phone for free, use this communication to obtain the real answers about Bankruptcy,(should have typed all avenues of dealing with debt changed on edit) not scare mongering to get you to sign up for a scheme which is not appropriate for you.
I know if you send paul @ reviva an email he will do his best to speak to you very soon
Their are many options to dealing with debt, all of the options are right in certain circumstances.
Hope I have not spoken to much jargon.
good luck and keep posting regards
Richard |
Edited by - Richard P on 08 May 2010 20:53:03 |
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Richard P
Senior Member
United Kingdom
1701 Posts |
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kendog
Starting Member
United Kingdom
6 Posts |
Posted - 09 May 2010 : 07:40:36
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Hi all yes kendog and unluckyone are the same people thanks for all the advise
kendog |
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Hi we need help
