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poxy
Starting Member
1 Posts |
 Posted - 12 January 2010 : 13:17:24
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Afternoon to all,
I have been in a iva for 7 months now and it is no longer feasable as my partner has had to give up work to look after our daughter as she was getting cared for by my mother in law for free.
Having spoke to my IVA acount manager and going back through the income and expenditure we have a minus of £321, so even she said the IVA is not feasable at all.
I dont really want to go BR but feel I have no choice.
We have a mortgaged house which I think is around £8-10k in negative equity and we have missed some payments.
If we do declare bankruptcy can they take our house ?
As you can see I do not have enough money to even pay what we have so how would it work when BR what would they take from us ?
I dont really have any assets as such, my car is worth around £1200 but need this to get to the train station which is 12 miles away.
How long does it all last ? Say for example it runs its 12months and we get discharged if say 6 months later we sold our house and there was say a 10k profit could our creditors come back after us ?
I would be greatful for as much help as possible ?
Regards
Poxy |
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Curlykid
Starting Member
19 Posts |
Posted - 12 January 2010 : 13:50:14
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Hi Poxy,
Wel first welcome - you are in a good place here where members and experts alike will offer non biased feedback.
Catch 22 - if you have minus income then the likelyhood is that at some point you will have to consider how long you can pay your morgage or continue in your home.
With negative equity the OR will not be interested though so thats a plus I guess.
Car usual allowance for a vehicle if its for work or if you have kids dependants is £2000/£2500 so you are OK there.
The process - can be as quick or as planned as you need it to be (taking curcumstances into account) After BR you are there for 12 months - discharged after 12 (sometimes sooner - known as early discharge) - if during the 12 months the OR gives you a repayment plan (based upon disposable income this can last for 3 years) - if this does not happen post being discharged then yo uare not accountable any further - equally if your house does increase in value post discharge then again this is not an issue. Credit file is affected for 5 further years but I think these days yo ucan start to rebuild your score day one after being discharged...if you ever want credit again!
Think most of this is correct - I'm a little rusty!!!
Sure you'll get loads more valueable feedback - goodluck - it aint so bad!!!
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RHB
Senior Member
1159 Posts |
Posted - 12 January 2010 : 15:14:37
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| Thing is, if you are minus 300 pound how are you going to manage? I understand not wanting to lose your home but if you could find somewhere cheaper to rent for the time being then any shortfall & arrears would be covered in bankruptcy. |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 12 January 2010 : 20:19:36
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Hi Poxy
if you have been in an IVA you will need to miss three payments and obtain a certificate of failure, your IVA provider should be able to assist.
yes they can take your house if the OR believes that it is an asset however as you have stated that it is in neg equity, You and the OR will need to look at your mortgage payments and establish , what it will cost to rent a similar property, nothing guaranteed but with young family, neg equity and missed payments it will be more likely than not that you will be allowed to stay (down to negotiation)
(one of the experts Housing is good to speak to if it is likely that you will be forced out of your house)
Car should not be a problem
when you apply for BR, the owner ship of your house automatically transfers to the OR, you can opt to buy back the beneficial interest for a nominal fee.
Poxy i would suggest that you take the option of speaking to one of the experts listed to the left(mel or Paul)they will put both you and your partners mind at rest
regards Richard
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 12 January 2010 : 20:48:16
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If the house is in negative equity, the OR will not be interested in it, presumably you can keep up the mortgage payments on it? You will need to find someone to buy the beneficial interest in it which will cost £1 plus £211 court costs.
If you wish to surrender the house, then the mortgage shortfall can be included in BR.
However poxy, I'm rather hoping your full and final will be accepted!
Buckle your seat belt Dorothy, 'cos Kansas is going bye bye.
Jan
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Steve Thatcher
New Member
United Kingdom
70 Posts |
Posted - 13 January 2010 : 11:09:42
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Poxy, just a word of advice about your IVA company and your certificate of failure. Make sure that you get your company to take setps to fail the IVA and that they put that in writing to you. There are companies out there who are slow in doing this and I ahve had clients wait months for the certificate which enables them to present their petition.
Consider carefully what you want to do about the house. There would be nothing worse than keeping the house, after having it transferred back to you, and then getting your discharge to realise thta you couldn't afford it and getting it re-possesed and being left again with a large debt.
The OR will have three years to deal with the house or he will lose his right. You have until your discharge to deal with it if you want to include any shortfall on sale, if you can't keep it.
Steve Thatcher
**Contact details removed** |
Edited by - Skippy on 13 January 2010 11:43:25 |
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Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 13 January 2010 : 19:21:15
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Hi Poxy,
I have been away for a couple of days - and enjoying the snow and traffic jams on the A38... Just seen the threads and as Richard P has said, I am happy to run some ideas by you if there are "housing" issues.
I post on here most days - happy to try to assist sometimes useful to look at the bigger picture. Regards, Richard
"Life is generally something that happens elsewhere" (Alan Bennett - author and hero of mine!!) |
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