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| emm |
Posted - 25 January 2011 : 14:13:29
Bit of a long story, but I will try to keep it concise.
3 years ago I helped my brother out by putting my name to a Spanish mortgage to help him buy an apartment in Spain he was already living in. He didnt have to pay a deposit. Our agreement was that he would be paying the mortgage as he would be living there. He immediately stopped paying and I have had to make all the mortgage payments since. He has since gone missing in Spain and I have not had any contact with him for about 18 months. I have been in contact with the bank all this time and have paid what I could of each monthly payment. In December I was told that the amount of the missing payments now means that it has gone to their legal department and the lady at the bank told me to stop making any more payments. The apartment has now been empty for over 2 years and needs money spent on it to get it to a rentable condition. The mortgage is with a German bank in Spain.
I don't own any other property and rent my home from the local authority, I also don't have any other valuable assets, just a 9 year old car and the usual household stuff. I am 58years old and in full time employment.
Should I declare myself bankrupt? I have some other debts, mostly a credit card for £3000 which I haven't been able to pay off because of the mortgage payments, I also owe a catalogue company about £1500 and a few other debts which amount to about £1000.
The mortgage debt is 129,000 Euros which I believe is about £100,000.
Any advice would be gratefully appreciated |
| 7 L A T E S T R E P L I E S (Newest First) |
| Richard P |
Posted - 25 January 2011 : 18:06:23
Hi Emm
the mortgage or rent on the property you live in and household bills are expenses you are allowed to claim before thye establish your left over income. the left over income is called the disposable income
it is not necesarily guaranteed that you will get an income payment agreement, depends on income and expenditure or your disposable income
No once you have decided to declare BR stop paying the mortgage. all of your unsecured debts will be included in your bankruptcy.
your advisors appear to be giving you conflicting messages, contact one of the experts and get the whole process ironed out.
Richard |
| emm |
Posted - 25 January 2011 : 17:58:38
ok, just a few more questions if I may.
I have researched and read all I can about bankruptcy plus spoken to some advisors but I think I may be misinterpreting some things.
Once declared bankrupt I believe there will be a 3 year period where I will be expected to pay off debts using any surplace income, does this include any payments to the mortgage?
If this does not include any payments to the mortgage does that mean they can still come after me for the debt?
As you state the mortgage is only part of the bankruptcy once the property is sold does that mean that I still have to try and pay them until then or can I ignore them if they contact me?
As I am approaching retirement age within the next 5 years I am keen to get this all over and done with by then, that is one of the reasons I have for not delaying until the property is repossesed.Will the court agree to the bankruptcy? |
| Richard P |
Posted - 25 January 2011 : 16:42:10
sorry Emm i have typed too fast and got ahead of myself.
Yes once the property is repossessed and sold the debt will become unsecure and can be added to the bankruptcy.
you do not have to wait for the property to be repossessed before you petition for bankruptcy.
I was intending to say that you had time to get your affairs in order before you have to declare BR.
regards Richard |
| RHB |
Posted - 25 January 2011 : 15:58:31
Yes, it will be once the property is sold. |
| emm |
Posted - 25 January 2011 : 15:50:03
Thanks for your quick reply.
As far as I know, given what similar properties are going for in the same area, the property is worth something like £80,000 so i have negative equity.
I am confused with your reply as I have been given to believe that the mortgage debt would be written off once I am bankrupt, is that not the case? |
| Richard P |
Posted - 25 January 2011 : 14:39:20
sorry in order to clarify.
The OR and trustees have written to me and stated that they do not have interest in the property.
Richard |
| Richard P |
Posted - 25 January 2011 : 14:35:41
Hi Emm
welcome to the forum
sorry to read your troubles, should make interesting family conversation when he eventually turns up !
how much is the property worth ?
having also had a property in Spain that i was supposed to have lost in bankruptcy, i can state that the system is very very no i mean very slow.
I have not paid a mortgage on my property in spain for nearly three years, I have been in and out of bankruptcy. I have written and phoned the mortgage company, I have even offered for voluntarily surrender of the property but nothing.
apparently it can take upto 6 years for them to repossess the property.
Even after my BR and correspondence they have offered for me to start paying the mortgage and we can negotiate on arrears.
so do not rush into anything speak to a couple of the experts and get every thing in the right order.
regards Richard
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