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louise0171
Starting Member
15 Posts |
 Posted - 27 September 2008 : 15:45:11
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| Myself and my husband are considering bankruptcy We own two properties neither of which has any equity due to falling house prices. The smaller property is lived in by my pensioner parents and we would reall not want to lose either house. As both houses are in negative equity - could we keep both? |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 27 September 2008 : 15:49:55
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Hi louise0171 and welcome to the forum.
The neneficial interest (BI) of the bankrupt needs to be realised for the benefit of the creditors.
The matrimonial home is an easy on to deal with. If it's in negative equity, you can nominate a 3rd party to buy your BI for £1 + costs (circa £211). This transaction is usually handled by the OR shoprtly after you go BR. Once discharged, you can then buy this back.
With an investment property, there is no time limit on realising the BI. The OR/trustee can put a "floating" charge over the property and hold on to it for years, realising any equity gains in that time.
If you are unsure how to proceed, please feel free to contact one of my colleagues on the helpline who will be able to advise you further.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
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digman
Junior Member
United Kingdom
319 Posts |
Posted - 27 September 2008 : 15:52:09
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Hi louise , as i always say when i start i am no expert but , as i understand it and have been told , the OR is not interested in bricks and mortar only the equity in it . If there is no equity the OR wont be interested at the moment , but can retain an interest in the properties for upto 3 years , so if equity becomes available thru rising house prices he/she could force a sale . Its not the OR that repossess house its the mortgage companies and as long as you pay the mortgage all should be ok . We are in similar situation re neg equity , and are going BR next friday .
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movin on
Average Member
United Kingdom
946 Posts |
Posted - 27 September 2008 : 16:18:53
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Hi Louise
I again, cannot comment as im certainly no expert. However i am going bankrupt on Monday 13 October and we are in negative equity too. A third party (in my case my hubby) can buy the beneficial interest in the property for the fees previously mentioned.
I would certainly take Julian up on the offer....i was in turmoil yesterday after an update meeting with the CAB (who gave me terrible info) Julian advised me to phone the helpline and i spoke to one of the nicest and friendly advisers. They will not judge you - they certainly made me feel more at ease . . please give them a call to put your mind at rest.
Take care and keep posting here.
Jenny x
The weights are coming off my shoulders very slowly, but making such a big diference !! |
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| bankruptcyhelp.org.uk Forum |
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can we keep houses in negative equity?
