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caroledp
Starting Member
12 Posts |
 Posted - 20 July 2009 : 19:38:20
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Hi, I’m new to this forum and hope that somebody will be able to help as I am absolutely desperate.
My ex has declared himself bankrupt, has stopped paying the mortgage on the house my son and I live in, doesn’t pay maintenance. I have been unable to meet the mortgage payments on my own and am facing repossession. I have put the house up for sale but have yet to find a buyer and the lender is getting impatient.
I have received a letter from the Trustee in Bankruptcy informing me that my house falls under Section 283A(1) of the Insolvency Act 1986 and I don’t have the faintest idea what that means
I believe that there is an insurance policy on the mortgage which will cover the lender in the case of negative equity, but will they then come after me? If yes, for how long? And if they do and I simply haven’t got the money to pay them, will I have to face bailiffs trying to take any of my possessions to make up for it?
I’d be grateful if there was somebody who can give me some advice about what’s likely to happen next, what Section 283A(1) means, if I have a way of getting out of this mess and what all this might mean for the future. Thanks
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 20 July 2009 : 20:33:13
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Section 283A(1) of the Insolvency Act 1986 is available on http://www.opsi.gov.uk/Acts/acts2002/ukpga_20020040_en_23 and is:
“283A Bankrupt’s home ceasing to form part of estate
(1) This section applies where property comprised in the bankrupt’s estate consists of an interest in a dwelling-house which at the date of the bankruptcy was the sole or principal residence of—
(a) the bankrupt,
(b) the bankrupt’s spouse, or
(c) a former spouse of the bankrupt.
It looks like the Trustee is advising you that your ex has an interest in the property.
I will let one of the professionals explain what the Trustee means with this Section and also what the next steps are from their point of view as I am not sure.
It may not matter about this Section as if you are unable to keep up with the mortgage repayments and cannot sell the house then it will be repossessed. The main issue will be whether there is any equity in the property or not. If there is equity then your ex's Trustee will want to claim half of to pay off his creditors. If there isn't any equity in the property then the Trustee won't be able to claim any money but you will be liable for any shortfall as your ex is now BR.
Others will help you on this forum but I would recommend contacting the CCCS, CAB or National Debtline to go through your situation and what the options are. |
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caroledp
Starting Member
12 Posts |
Posted - 20 July 2009 : 20:53:23
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Thanks for your help. I've been down the CAB (very nice and concerned by ultimately useless) and National Debtline (never even replied to my emails) route and nobody seems to quite know how to deal with my problem. I'm very worried about what the mortgage lender will do about the negative equity and how they'd plan to retreive the money...
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 21 July 2009 : 07:24:30
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Unfortunately you would be liable for any shortfall as your ex is BR. This would be the case regardless of whether you sold the house for less than the amount you owe in the mortgage or whether the house was repossessed.
If you aren't getting any joy from the National Debtline (they are very busy at the moment) you can also get advice from the following companies who post on this board and are highly respected. They offer free advice and will only charge if you want their assistance in completing the BR forms or even accompanying you to court on the day:
Reviva UK: http://www.revivauk.com/
Jones Giles - http://www.jonesgiles.co.uk/
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 21 July 2009 : 08:34:50
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Hi
The bad news is that if there is any equity then the official receiver is entitled to half ( your ex husbands share )
if there is any shortfall after sale or reposession then you will be liable for all. I know it doesn;t seem fair at all.
I would recommend you speak to an expert and at the very least have an understanding of where you are in the time frames, what your options are and how to plan for the best outcome for yourself.
the experts on the site will be happy to spend some time offline to give you free advice.
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
Real People ..... Real Debt Solutions |
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caroledp
Starting Member
12 Posts |
Posted - 21 July 2009 : 18:05:58
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Just had a very long chat with Paul from Reviva and I have to say a huge "Thank you" for being extremely helpful and patient. This was the first time that anybody has been able to explain things to me step by step and actually calm me down and stop me from panicking. Again, THANK YOU 
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Hi, I’m new to this forum
