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Starting Member

5 Posts

Posted - 06 April 2009 :  16:02:03  Show Profile  Reply with Quote
Hi , it is looking like we may have to go bankrupt as we can not maintain our IVA payments. We have been in an IVA for 2 and half years although took a payment holiday of 6 months during this time. We were paying £521 pounds a month but we are proposing a variation and our new surplus income is £170 pounds and I really cant see this being accepted hence the need to find out about bankruptcy.

Should the worst happen and bankruptcy is our only way out then what are the costs for 2 people to go bankrupt our IVA is joint. Also we would be requesting that a family member buy our beneficial interest in the property which is looking like will be nil as we maybe in negative equity. As someone previously stated in my last post, the solicitors fees are £211 pounds and a pound for the interest if the house is in negative equity. However does this money have to paid on the day even if the equity is more than this?. Also is there any other costs involved in buying the beneficial interest?, I have heard that a bond is required but dont know if this us true. Should we also obtain a professional house valuation before going bankrupt to help the OR make a decision re the Beneficial interest?.

And finally what are the chances of the OR agreeing to let us buy the beneficial interest? As some people have said this might be refused and the OR decide to sit on the house unti house prices increase.

Once again any help and advice is much appreciate and sorry for such a long post!.

forum expert

United Kingdom
565 Posts

Posted - 07 April 2009 :  17:02:28  Show Profile  Visit Blackie's Homepage  Reply with Quote
First, the bankruptcy costs for each of you will be £510 - Court costs of £150 plus Official Receiver's non refundable deposit of £360. There is no reduction for a couple. You could be eligible for a fee remission depending on your circumstances but that would onlt be £150 each at the very most. If you look on the HMCS website, you should be able to download the booklet - Court Fees and do I have to pay them.

Secondly, if your home is in negative equity (or has equity of less than £4,000), you will have to pay the OR £1 each to buy your interest from him plus pay the £211 solicitors costs. You do not need a bond. Admittedly the OR has 3 years to deal with your home but he will want to sort out the matter as soon as possible. It is highly unlikely that you will be refused buying back your beneficial interest in your property.

John Blackadder
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Starting Member

5 Posts

Posted - 08 April 2009 :  20:16:01  Show Profile  Reply with Quote
Thanks for the reply.
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Starting Member

1 Posts

Posted - 12 August 2013 :  08:09:07  Show Profile  Reply with Quote
The only expenditure I think may be disallowed is my mortgage protection but can they disallow something that they previously allowed? I will be seriously annoyed if they allowed the policy, charged me £50 to purchase there interest back and then under the new rules they disallow it!!!

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forum expert

United Kingdom
2211 Posts

Posted - 12 August 2013 :  08:40:18  Show Profile  Reply with Quote
Hi Aiza,

This thread is four years old, it is out of date and things have changed. It's about buying back the beneficial interest and not about expenditure.

Viki Warbrooke
Vincent Bond & Co
If you would like free advice on all options available and help with your bankruptcy petition please contact me at http://www.vincentbond.com/about_us_Viki_Warbrooke.asp
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