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| T O P I C R E V I E W |
| NotSoBrightSpark |
Posted - 11 April 2008 : 18:54:52
Hi everyone,I've made a few posts on the Iva.co.uk but this is my first on here 
Well been giving some serious though to bankruptcy and me and my wife are 99% sure that bankruptcy is our best option.
Quick run down of the facts.
£73,000 unsecured debt
£108,000 left to pay on mortgage
House valued today at £140-145,000 (140 would guarantee a fairly quick sale)
Penalty for changing mortgages £5,500
£25,000 of charging orders currently on property.
As you can see from these figures,if a sale value of £140,000 is achieved,equity for creditors will be around £7,500.
My question is really based around our house.As I understand it (with kids 16/14) the OR would probably let us stay in the house for twelve months and then sell it to realise assets for creditors.Basically we would like (if at all possible) to remain in the house and pay off the equity to the OR.We would not be able to borrow the money from relatives etc
Right,has anybody,or would it be possible to negotiate with the OR a longer period of time in which to find the money equivalent of the equity to pay the creditors so we could remain in the property.£7,500 seems a relatively small amount of money to give up on and just lose the house.And also I think (though I'm calcualting myself) this would be towards the top end of what money would be required.
Our current mortgage deal ends on November 30th.I have spoken with them and asked them what would happen if we went bankrupt.They said we would not be able to choose a separate mortgage product from them but at the end of the current mortgage term (November) they would just put us onto variable rate and that would be that.Does this sound right?
All advice welcome and most definitely required 
My previous posts were on IVA website but I've posted this question here as I think it's more relevant to this forum.
Thanks
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| 11 L A T E S T R E P L I E S (Newest First) |
| NotSoBrightSpark |
Posted - 12 April 2008 : 13:00:40
Well after leaving a message on the Reviva UK website only this morning I have just received a telephone call from Paul Johns with regards to bankruptcy.
I must say that already we are feeling much better about our situation and instead of looking back we are now looking forward.We received clear,friendly,knowledgeable and prompt advice.It's amazing what one simple phone call to an expert can do.I only wish I'd spoken to Paul earlier.
If anybody has any questions about bankruptcy I wouldn't hesitate to contact Reviva.
Thanks once more
NSBS  |
| NotSoBrightSpark |
Posted - 11 April 2008 : 22:14:22
Thank you very much Paul.
Greatly appreciated and I'll be in touch tomorrow via the website.
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| Reviva UK |
Posted - 11 April 2008 : 22:12:25
Hi
Always happy to chat. Best way is via the contact page on the web address www.revivauk.com
let me know when you want to chat & I can call you
take care
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
| NotSoBrightSpark |
Posted - 11 April 2008 : 22:09:19
Hi Paul,
We could't afford the payments on the car and I think they did threaten repossesion at one time but as it turned out the car finance we had was actually a personal loan and not,as we first thought,HP.We eventually went to court though and a charging order was placed upon it.Not long back we were going to sell the car and get a cheaper one so we phoned Fiat up and asked them if the car was indeed ours to sell.They said yes it was and didn't have a problem with it at all,though the charging order would remain.
Davenham Asset Finance was for the lease,three year term,of a computer+software which was part of a franchise business we had that badly failed.
The charging order costs per month are -
Fiat £5
Davenham £8
Northern Rock £5.16
Paul,is there a possibility I could send you a personal message via your e-mail because I think it is probably best if I could talk to you in person.
Regards
NSBS |
| Reviva UK |
Posted - 11 April 2008 : 21:49:11
Hi
Car - if Fiat have a charging order against the house then they obviously have take court action so not sure from what you said whether the car is actually clear of HO or not.
In theory if Fiat pursued you for a charging order they would have reposessed the car first.
Davenham asset Finance - what was this for ?
How much are you paying per month for the charging orders?
From what you have said so far I think there is a good possibility that the house could be saved and depending upon the income & expenditure you would be paying substantially less in Br than in the IVA.
As I have said on a number of posts if you have decided to look at Br seriously you need to get a plan and a timeline.
lookforward to the answers
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
| NotSoBrightSpark |
Posted - 11 April 2008 : 21:43:57
Hi Chris,hope you're well.
We are not certain yet about bankruptcy but it is increasing looking that way.House valued today and estate agent reckoned we'd definitely get a sale of £140,000.
As far as the charging orders go,we already do pay a smallish amount per month to the creditors that have charging orders on our property.
When and if we did go onto variable rate,I don't know exactly how much we'd have to pay.Neither do I know if we went bankrupt,how much disposable income the Official Receiver would say we had and therefore how much IPA we would get.So it's not easy to say at this moment in time,if we'd be able to afford it or not 
Regards
NSBS  |
| NotSoBrightSpark |
Posted - 11 April 2008 : 21:37:33
Ask away Paul.It is me requesting advice.Answering questions is the very least I can do.
Mortgage payment is £640 per month.Mortgage company is UCB Home Loans,a specialist lender of Nationwide.No arrears and no court actions.
No second mortgage but we do have three charging orders against the property.
Davenham Asset Finance £11,000 approx
Northern Rock £7,700
Fiat Auto Fiancial Services £5,600 (this is against our car)
We pay a small amount toward the charging order creditors each month.
The company our IVA was taken out with was Debt Shave but this is now part of The Debt People.We have the same supervisor but a different case worker who to date has been very helpful.
No other HP commitments.
Our car is worth around £3000 but there is already a charging order in place on this.
Thank you Paul much appreciated
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| chris.g |
Posted - 11 April 2008 : 21:29:55
Hiya NSBS, am I right in assuming that both you and your wife will be filing for br? There may not be any equity left in your house by the time you file with the prices declining the way they are. If not, you may be able to buy the Beneficial Interest for £1 + fees. As already discussed with you though, could you afford the payments on the charges if they decide they want a payment aswell as the mortgage payments? |
| Reviva UK |
Posted - 11 April 2008 : 21:23:50
Hi
Grateful for the following
1st mortgage monthly payment
Mortgage company
Any arrears
Any court action?
2nd mortgage monthly payments?
mortgage company
any arrears?
Any court action?
Which IVA company are you with?
Do you have any other HP committments?
Do you have a car - if so what is it worth?
sorry for the q's
thanks
Paul
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
| NotSoBrightSpark |
Posted - 11 April 2008 : 21:07:25
Hi Paul,thanks for the quick reply.
We had a valuation today.The estate agent said we could put on the market for £145,000 but we would get definitely get a sale for £140,000.He was confident about this.
We are currently in an IVA in which supposedly we have £365 disposable income.78 monthly payments at £365 + 50% overtime clause + equity release after four years.These repayments are extremely difficult to meet and leave nothing spare.Hence why we're considering bankruptcy.
We would ideally like to stay in the house if at all possible.I'm not sure how though because we wouldn't be able to make a lump sum payment of around £7500.Neither could we borrow it and that's really the reason I asked if it would be possible to be granted a kind of extended period in the house from the OR with a view to eventually finding the required money.
£73,000 unsecured debt
£108,000 left to pay on mortgage
House valued today at £140-145,000 (140 would guarantee a fairly quick sale)
Penalty for changing mortgages £5,500
£25,000 of charging orders currently on property.
As you can see from these figures,if a sale value of £140,000 is achieved,equity for creditors will be around £7,500.
I am an electrician taking home around £1250 a month after tax.My wife is currently on incapacity benefit.We have two kids 16 & 14.
I have discussed bankruptcy with our IP briefly.First step they wanted us to do was fill in another income & expenditure form.Our IP did go through the bankruptcy procedure with us though and was and is happy to answer any questions we may have.We would have to fund the bankruptcy ourselves.
Thanks again
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| Reviva UK |
Posted - 11 April 2008 : 20:45:04
Hi
welcome to this forum
When did you last get an estate agent round to give you a realistic valuation for achieved sale? You may be surprised but in several areas of the country houses are difficult to sell and it may be that the value is lower than the 140.
Have you done a full I&E? and if so what is the disposable income AFTER mortgages are paid but before creditors?
Do you want to stay in the house if at all possible?
Also what level of debt are you both in and what jobs are you currently doing?
I know there are a lot of Q's but to help you we really need to know.
Also have you discussed the Br option with an IP?
Happy to help
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
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