I am considering bankruptcy following a failed business, I have £69k of debt. I have a joint property valued in April at £160k. My mortgage is £151k, leaving £9k equity.
How would the OR/Trustee value the equity? Would the £9k be split equally between my and my partner? What about the £4k early repayment fees on the mortgage? Would that be taken of the 9k and then divided up, leaving only £2.5k to buy out the OR's interest?
Hey chequebook, welcome to the forum. I'm not an expert but I don't think the OR takes early redemption fees in to account. Please wait for an expert as I may be completely wrong. Viki X
The equity would be based upon your share of the property - usually 50% and the early redemption penalty is rarely taken into account by the Official Receiver, so your share is likely to be £4.5k.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com
Working out the equity? Advice pls
Posted - 29 June 2008 : 20:29:30
