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adam
Junior Member
170 Posts |
 Posted - 23 August 2008 : 17:32:29
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| will all secured loans and the charging order i have be gone will they take into account oertime or basic salary thanks |
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John
New Member
United Kingdom
73 Posts |
Posted - 23 August 2008 : 18:09:17
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Hi
I presume you mean will the secured loans and charging order be gone if you declare bankruptcy.
The short answer is no.
If you go BR, choose to stop paying the mortgage or the loan and the house is repossessed, provide you get the timing right then any shortfall in the auction sale price in relation to your borrowings can be written off.
Your earnings will be based on an average of your last 3 wage slips. However, if you had no overtime during that period and then had it regularly you are legally obliged to inform the OR who could check with the Inland Revenue at any time.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 23 August 2008 : 22:18:53
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HI John,
What do you mean by Get the timing right? Please
Thanks
JO
"There is light at the end of the tunnel, if you cant find it, get a brighter torch!" |
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John
New Member
United Kingdom
73 Posts |
Posted - 23 August 2008 : 23:07:28
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Hi Jo
just basically ensuring the shortfall is captured in the BR.
If you go BR and ignore the property then when you do lose it through not paying the mortgage this will not be captured in the BR and you'll probably end up going through the BR process again.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 24 August 2008 : 07:49:24
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So John
How will that work now for us. We put down on the SoA in both secured and unsecured the mortgage, but we have equity in the property and the OR wants there bit.
We will wait till May 31st next year and see what the new mortgage payment will be then if we cnat afford it we will look to find somewhere else, but that will be after discharge hopefully the 4th Aug next year.
If it is way way too high then we were going to stop paying the mortgage so that we could use the 2 or 3 payments that will be missed on a new place to rent. We will of course be informing the OR of our intentions if the house is too much to afford.
Will our home still be captured on the BR as we dont want to end up with a bill at the end of this.
Please advise, as im still learning.
Thanks
JO
"There is light at the end of the tunnel, if you cant find it, get a brighter torch!" |
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John
New Member
United Kingdom
73 Posts |
Posted - 24 August 2008 : 08:50:44
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Hi JO
You've included a possible shortfall on your SoA which will cover you if there is one.
But the OR obviously won't force the sale if there isn't and as you have children he has to wait a year, if that's your choice, to find out. Who knows what the property market will be like in a year from now which is the earliest you plan to leave. Even if you have an estimated £20K of equity at that time, the OR is still far from guaranteed to acheive this through a forced sale.
Who is going to buy it at full market value when hardly anyone qualifies for a mortgage anymore?
If the OR is confident of realising equity through a forced sale then of course unless you can find the likely equity amount from somewhere he will do just that which means the decision as to whether the increased mortgage payment is affordable is academic as you can't stay.
In real terms the decision on whether to stay or not won't be yours to make unless the OR decides there is insufficient or no equity to realise through a forced sale.
You should liaise with your examiner and be sure just how long you can wait to make that decision, if it's yours to make. There must come a time after the point of discharge where if the OR has no interest, and you decide to leave the property, when having included the shortfall in your SoA becomes irrelevant.
Otherwise you could go on for months trying to afford the mortgage then if it fails refer to your SoA and say it's included.
There has to be a line somewhere and I would make sure with your OR exactly when that is.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 24 August 2008 : 09:23:06
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Ok John,
I will wait till we get some info back from them as they are still going through the process at the moment.
I will then ask them what we do as I know we wont be able to afford to pay after 31st of May next year and to put the house on the market i have now been told I would get around 175k wait till spring and I should get about 170K.
I want to leave the house but want to wait till christmas is over and then start looking at what we should do next.
I just dont want to end up with the shortfall being added to our debts again.
If we ask the OR if they can put the house on the market in Feb or March then that gives us enough time to try and sell and we can look for somewhere else to go as the house should be sold fingers crossed and we can clear the mortgage.
We need to acheive a sale of 165k to clear the mortgage and the fees associated with it.
The OR has told us that they put a charge on the deeds so it will be up to them, but I want to get it sold if possible and move on, but like I have said im not too worried at the moment as I want Christmas and the new year done then I will see what we will have to do.
Just waiting on any info from OR's office as to what we will pay etc so nothing yet, I know it will take weeks, thats when I will give them a call and see what state of play is.
Thanks again, your a star.
Jo
"There is light at the end of the tunnel, if you cant find it, get a brighter torch!" |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 24 August 2008 : 09:26:40
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Oh John,
If the OR then after the year forces a sale, we move out will the shortfall be captured then.
As it was included as possible shortfall on the SOA.
Only wondering as like you say they tend to give you a year if you have kids and then that will mean post discharge.
Please advise
JO
"There is light at the end of the tunnel, if you cant find it, get a brighter torch!" |
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grantspants
Junior Member
United Kingdom
297 Posts |
Posted - 24 August 2008 : 16:02:25
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Hi Jo/John,
Very interesting topic, and of concern to me too 
I'm going to include the negative equity on my SOA too, but how much should you put? Because I could put, say, £18,000 on mine but what if it actually comes to more? Would the BR only cover the £18,000 or any possible shortfall at all?
Tricky stuff this!
Many thanks
p.s congrats to you Jo, seen lots of your posts here, and you really deserve the expert tag, you have helped so many people....
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 24 August 2008 : 16:10:18
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Hi Grantspants,
I put the total Mortgage on mine, just to be on the safe side and then put possible shortfall for explanation. This i then put in secured and unsecured on the SoA.
And thank you for the kind words, i try and do my bit but like you i am also learning too. But anything I can then pass over to others is a plus.
TTFN
JO
"There is light at the end of the tunnel, if you cant find it, get a brighter torch!"
You can read my blog here:
http://debtfreejo.blogs.bankruptcyhelp.org.uk/2008/08/24/my-debt-free-future/ |
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secured loans and the charging order
