| T O P I C R E V I E W |
| mattdjuk |
Posted - 17 March 2008 : 13:10:22
Hi all,
I currently am on a DMP with Payplan, I owe in the region of 80K and have been told that an IVA is not currently a valid option. The DMP will take me 17years to pay back! I have spoken to a couple of different people about the possibility of an IVA but the amount I can offer and the fact I have HSBC as a major creditor, rules me out
I was wondering about certain aspects of declaring bankrupt...
My wife and I are joint mortgagees on a flat, what would happen if I were to go bankrupt? I've read some stuff about my wife being able to buy my share of the property from the OR - Some rough figures would be helpful here to know if this is a viable option. The flats worth about 215K and the mortgage is for 193K, the equity was based on a 50/50 split between my wife and I. However we are currently in the first year of a 5 year fixed deal and the early repayment charge is 11K - so realistically we don't have that much equity even if we sold for top price.
Also, what happens with the mortgage? Obviously that was based on our combined income and if my wife had ot remortgage just in her name it would be impossible, and I know you can't obtain credit over £500.
the only assets I have are my share of the property, a 2 bed flat (mortgage payments are interest only and about the same as renting sothing equivalent), I also have a car which is on HP and is worth about what I have to repay over the next 5 years (4-5K).
Obviously this would be a big decision and I want to go into with all the facts. I'd be grateful for any info you can offer.
Thanks
M |
| 15 L A T E S T R E P L I E S (Newest First) |
| zoe |
Posted - 07 May 2008 : 17:13:11
Hi there
sorry for the delay
i am dealing directly with the or office.
I am looking to see if anyone knows of any examples of OR offices where they have taken this into account, to use in my arguement???
Z x |
| JulianDonnelly |
Posted - 04 May 2008 : 17:12:21
Are you dealing direct with your examiner or the central unit?
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
| JulianDonnelly |
Posted - 04 May 2008 : 17:11:18
The trustee in Bankruptcy only has three years to deal with your property so if the redemption lasts for three years this should be taken into consideration, however there is no legal requirement for them to do so.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
| mattdjuk |
Posted - 02 May 2008 : 11:46:30
Thanks to Zoe for bumping this back up - Thats the question that is really key for me and I've been told different things.
I've just had my flat valued its worth 210K, the mortgage is 193500 but we have an early redemption penalty of 11500 on that so it leaves hardly any equity. |
| zoe |
Posted - 01 May 2008 : 12:51:28
Hi - does anyone know of any official receivers offices that HAVE taken early redemption into account???
thanks
|
| Reviva UK |
Posted - 30 April 2008 : 23:05:31
Hi zoe
you can either rely on the official receiver to do this for you or alternatively speak to one of the experts who assist with Br - which includes the negotiations for the BI
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
| zoe |
Posted - 30 April 2008 : 11:17:44
Sorry
Could anyone help with this??? |
| zoe |
Posted - 28 April 2008 : 20:37:26
Hi there
No my parents are buying the BI for me.
Thanks
Z |
| Helpful Advice |
Posted - 28 April 2008 : 13:52:02
Hi zoe,
Are you negotiating to buy back the beneficail interest yourself?
If so I know what the problem is.
In each of the transactions we deal with the BI (Beneficail Interest) is sold to a third party.
In most cases this is the spouce, however this can be a family member or friend.
When negotiating the sale of the BI to a third party they will normally take into account the costs of sale and early penalty charges, however if you are negotiating to purchase this back yourself they do not make these allowances.
You may need to nominate a third party to purchase your BI.
I hope this helps
Kind Regards,
Brett England
Bankruptcy Specialist
England,Jackman & Spacey
WebSite www.ejands.co.uk
View my personal story & blogs at:
http://brettengland.blogs.bankruptcyhelp.org.uk/ |
| zoe |
Posted - 28 April 2008 : 13:25:44
Hi Helpful advice
i am the person that mattdjuk refers to in that the OR has refused to take my ERedemption into account. (it has another 3 and half years to run and i have been bankrupt for nearly a year) can you tell me if you have had any experience of OR's actually taking this into account for use in my argument with them????
thanks a million
|
| Helpful Advice |
Posted - 18 March 2008 : 12:07:10
As Long as you use the £10,000 to improve your unsecured creditors position, then this would be ok.
If you took out the secured loan and did not spend this on paying creditors this would be seen as bad conduct prior to Bankrupcty and result in a bankrupcty restriction order.
If you go down the secured loan route then the payments to this lender would be a viable expence in Bankrupcty therefore limit the possibilty of your getting a Income Payment Agreement or Order.
If there is little or no equity in your property by going down this road I would then do the transaction of selling the BI through the OR and not before.
View my Blogs at:
http://HelpfulAdvice.blogs.bankruptcyhelp.org.uk/
Bankruptcy Specialist
England,Jackman & Spacey
WebSite www.ejands.co.uk
|
| mattdjuk |
Posted - 18 March 2008 : 07:52:51
I spoke with Paul last night and I'm feeling a lot more comfortable about things. Thanks again for the advice.
Some more questions...
Say I took out a secured loan, for 10K, used it to pay some of the more difficult creditors and then went bankrupt. Obviously the level of equity available would be next to nothing, could I then sell it prior to bankruptcy for a nominal fee? I'm looking at alternatives if I can't get family to raise the market rate for my share. |
| Helpful Advice |
Posted - 17 March 2008 : 16:18:00
They must take into account the secured creditors first and foremost, however the OR can take up to three years to deal with the equity in the property so if the early repayment penalties were to come to an end within the three year period then I could see why they would not consider these, whereas yours are for five years so well outside the three years rule.
As for costs of sale this is a negotiation and is dependant on area, but if they were to have to sell the property these are costs that they would have to consider so they should also consider them upon negotiation.
View my Blogs at:
http://HelpfulAdvice.blogs.bankruptcyhelp.org.uk/
Bankruptcy Specialist
England,Jackman & Spacey
WebSite www.ejands.co.uk
|
| mattdjuk |
Posted - 17 March 2008 : 16:06:20
thanks,
I'm confused now - I have been reading another forum where someone who has goen through the process said that the OR categorically refused to remove early redemption penalties and sale costs. Is the way you describe it a rule or is it luck of the draw so to speak? |
| Helpful Advice |
Posted - 17 March 2008 : 16:03:23
Hi Mattdjuk,
They would take the value of the property less the mortgage less any early repayment penalty, that you have said is £11k.
They would then calculate cost of sale i.e. estate agents and legal fees this being around 2% as a guide, then they would split the equity 50:50
so as follows:-
£210,000 value
£193,000 mortgage
£11,000 early repayment penalty
£4200 costs of sale.
=£1800/2= £900
They would then require, whoever were buying the BI to pay legal costs of around £250 for the transfer so your wife if she were to buy your interest would have to pay the OR £1150
Hope this helps
View my Blogs at:
http://HelpfulAdvice.blogs.bankruptcyhelp.org.uk/
Bankruptcy Specialist
England,Jackman & Spacey
WebSite www.ejands.co.uk
|
