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tsl1969
Starting Member
United Kingdom
4 Posts |
 Posted - 17 May 2010 : 13:33:37
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Hi everyone - new to the site today.
I have recently gone into BR and I'm trying to get clarification on my options around my home. I currently have a mortgage of £160,000 and a secured loan of £50,000. If my parents by the 'benficial interest' in the property - what does this really mean? Do I get to keep the house? Will the mortgage and the secured loan go into my bankruptcy? Will they be able to still take the house? I can actually afford to keep paying the mortgage as it will be cheaper than renting, it's just the secured loan payments I can't afford. Sorry for so many questions, but I'm a little confused! Thanks in advance. |
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Daniel Griffiths
Junior Member
United Kingdom
268 Posts |
Posted - 17 May 2010 : 13:58:14
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| Hi Can you advise as to whether you have petitioned your own bankruptcy, or have you been made bankrupt by a creditor, |
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tsl1969
Starting Member
United Kingdom
4 Posts |
Posted - 17 May 2010 : 15:12:53
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| Hi - yes I've petitioned my own bankruptcy at Croydon CC. |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 17 May 2010 : 15:40:13
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Hi TSL
What is value of home ?
yes if your parents buy the BI you will be able to keep the house, however if they buy the BI you or they will be still responsible for mortgage AND secured loan.
regards Richard |
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Daniel Griffiths
Junior Member
United Kingdom
268 Posts |
Posted - 17 May 2010 : 15:41:57
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Hi
I am therefore just a little concerned that you seem to have done this without taking advice on how the home will be treated in bankruptcy. Your mortgage and secured loan are not provable debts in bankruptcy and will need to be paid or your home will be repossessed, if that happens the shortfall on the sale if any, will be included in the bankruptcy. The beneficial interest you pay to the trustee in bankruptcy will simply remove the home from the attentions of the creditors, the interest itself will be the profit in the home after the total of the loans secured upon it are taken from its value,
hope that helps |
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tsl1969
Starting Member
United Kingdom
4 Posts |
Posted - 17 May 2010 : 15:43:40
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Hi Richard
Thanks for your reply, my house is valued around £165-£170,000.
Seems a pointless exercise to do this then, as one of the reasons for the bankruptcy is the fact that I can't afford the secured loan. Oh well, renting here I come! Thanks. |
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tsl1969
Starting Member
United Kingdom
4 Posts |
Posted - 17 May 2010 : 15:50:49
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| Hi Daniel, I did seek advice from the CAB and an Insolvency practitioner, but the Official Reciever said I should seek advice again to see if there was any other way of keeping my home. I just wanted clarity of the BI issue. I was aware that I would 99.9% have to hand over the keys to the house when I petitioned. Thanks again, just wanted to be absolutely sure in my mind I'd checked every avenue. |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 17 May 2010 : 15:56:37
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Hi TSL
now that we have established that your house is in negative equity and you cannot afford to stay at the property.
we need to plan your moving to another property, yes i agree with Daniel this should have been sorted before going BR, any way it has not so what can be done ?
Do not rush to move out of the house, I think that the OR will allow you upto 3 yrs, your mortgage provider and secured loan provider will not be so relaxed, they will probably get court orders in about 6 months.
visit your local council NOW and speak to the housing department, get your position with them clarified.
your parents will i think better help you by offering to be guarantors to the rented property or helping with the deposit.
And in answer to your next question definatly not is the answer but others may disagree, !
regards Richard |
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BR with Mortgage and Secured Loan - Help!
