Hi , We have been in an IVA for 3 years in August and have another 2 and a half years to go(6 months added on due to maternity leave). The total amount of our debt was 570000 pounds and we were paying £521 POUNDS a month. We can no longer pay this amount as my husband works for Toyota and has lost a lot of income due to reduced hours/shifts etc and our mortgage has increased along with Bills etc. We are preparing an IVA variation proposal and hope to be able to reduce payments to £250 a month, but at the moment we are not even sure if we will be able to maintain this much if husbands income decreases even more, also a family member currently looks after our baby daughter for free whilst we work, but there is a chance that they will be having an operation later this year so we will then have to pay for childcare.
My question is if we were to go bankrupt would we be able to keep our house buy buying back the beneficial interest?. Our house is mortgaged at £102000 and has a valuation of between £98000-£110000 at the very most. If the valuations were to come back at less than the mortgage is it true that the beneficial interest become a £1.00 and any solicitors costs?. If this is the case do you think bankruptcy is a better option for us as we do have family who could buy the interest? Any advice is much appreciated?
As long as you can continue to pay the mortgage and the house is in negative equity (you will need to have it valued to make sure) then a relative can buy the beneficial interest for £1 plus £211 costs.
Bankruptcy could be an option for you, one of the experts will be along to advise you as well.
Thanks for replying , if you dont mind can I ask another question is it possible that the Official reciever (if thats the right word)can decide to keep the house until the equity increases and refuse to let us buy the beneficial interest as it stands?. If so what are the chances of that happening considering the situation with house prices at the moment. Also who decides on the value of your home? is it done on an estate agents valuation, arranged by yourself or does the OR send someone to value the house?. Thanks again.