|
|
 |
 |
FORUM |
|
> Browse and post on our forum |
|
|
|
 |
|
 |
|
Note: You must be registered in order to post a reply.
To register, click here. Registration is FREE!
|
| T O P I C R E V I E W |
| darren_b |
Posted - 03 July 2008 : 23:21:59
Hi all.
First of all, been reading a lot of posts and found a lot of help already...thanks.
My wife and I have combined debts of around £45k. In addition to this, we have a mortgage of £87K and a secured loan of £37K with the property only worth around £110K.
It has been the secured loan payments of £400 a month that have totally crippled us and we have had our head in the sand for years now about our debt mountain.
I have spoken to companies about IVA's, and this might just be me, but the money that we are allowed to keep does not seem reasonable at all and I really can’t see us keeping to our payments (for example, car repairs, washing machine breakdown and a broken bed have cost us in excess of £500 in last three months - I wouldn’t have had that money under an IVA and would have been stuck).
We don’t mind losing the home - we have been here 4 years, and regret ever buying it....
The only option we seem to have is BR. But I have some questions.
1. How difficult will it be getting rented accommodation if we lose the house, after being declared BR?
2. Will I be able to keep the internet at home as its needed for our jobs?
3. We will have around £800 spare a month after the BR if we move into rented accommodation, what will be taken from this after the BR?
4. How do I start all of this, and what happens with the house – how do we go about getting out of the house and it being repossessed?
Any help would be great!
|
| 12 L A T E S T R E P L I E S (Newest First) |
| JulianDonnelly |
Posted - 08 July 2008 : 15:19:01
Hi Darren,
To clarify, in a reposession, a shortfall would become a new UNSECURED debt and so included in BR. Any secured debts would still be excluded (ie if you kept your house).
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
| melanie_giles |
Posted - 07 July 2008 : 22:27:15
Any shortfall would be classed as an unsecured claim and properly included in your bankruptcy.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
| darren_b |
Posted - 07 July 2008 : 16:49:04
quote:
Originally posted by JulianDonnelly
Hi Darren,
Secured loans are excluded from an IVA as well as BR.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Sorry, that doesnt seem to read right, are you saying a secured loan wouldnt be included in the BR if the house was reposseed and we then went BR? |
| JulianDonnelly |
Posted - 07 July 2008 : 12:48:20
Hi Darren,
Secured loans are excluded from an IVA as well as BR.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
| darren_b |
Posted - 07 July 2008 : 09:47:27
Hi Melanie,
Thanks yet again for your response. My issue with the secured loan is that the companies I have spoke to have told me that the secured loan would not be touched in an IVA - just the unsecured debt. So at the end of the 5 years, paying an IVA, I would still have a mortgage and a secured loan to pay, defeating the object of becoming debt free. I would still be paying around £1300 a month (ground rent, mortgage, loan) which seems excessive for a flat?
Thanks for the advice on the car, Ill speak with them today. |
| melanie_giles |
Posted - 05 July 2008 : 20:24:00
Darren
I don't really understand your point about having to service the loan payment whilst you are in an IVA. Can you clarify that please. It will not be deemed irresponsible if you miss a few mortgage payments to save for a rental deposit.
With regard to your wife's car, it is not definate that this will need to be returmed to the HP company - give them a ring and find out what their policy is on bankruptcy. Of course if they do allow you to keep it, the OR will have to approve the monthly payment.
The OR will use average earnings over the last 13 weeks to assess your partner's income and therefore whether an IPA is suitable. But this does not mean that you cannot appeal the sum at a later stage if the income drops.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
| darren_b |
Posted - 05 July 2008 : 18:58:53
Hi Guys,
Thanks so far for all the advice, and I intend to make some calls to the people recommended on Monday.
Just three more questions:
1. We are going to have to miss mortgage payments/secured loan payments to raise the sum to pay the deposit and first months rent on accomodation -how will the court view this? Is this irresponsible?
2. Read a lot about OR's not allowing cars to be kept - my wifes is on HP - so obviously that will be going back - but we will be able in the next three months to save for a car about £1500 (missing payments etc). As she needs this for work, will we be able to keep this? She uses this to meet clients etc. I start work at 4.30 when there is no public transport, I assume I will be able to keep mine?
3. My partner is in a sales position - one month can differ from another - how will the OR deal with this? Im worried about them using an average, as some months can differ by as much as £400 - if that was the case, and I we had a set IPA, we would be unable to make it that month?
|
| JulianDonnelly |
Posted - 04 July 2008 : 16:42:40
Hi Darren,
I would sugegst BR is the right option for both of you. Timing is critical in your case, and you would need to do things in the correct order...
1. Reposession. If the lender cannot sell the property on the open market, it will go to auctio nwhere it typically achieves only 75% of the market value. any shortfall would be a new unsecured debt to yourself.
2. Get into a rental. If you wait until after your BR, it will be very challenging to pass the credit check without paying 6 months rent in advance.
3. Go BR.
Given the nature of your case, i would suggest you speak to Brett England of England, Jackman & Spacey who does excellent work in this area, as does Paul Johns of Reviva. You can contact them through the weblinks on the experts page.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
| darren_b |
Posted - 04 July 2008 : 11:29:23
Hi Guys, first of all thanks.
Melanie:
We would only have £800 left if we went BR and had to surrender the house, as we would no longer have the £400 a month loan repayment charge to pay each month - with an IVA we would still have that to pay.
As for loosing the house - this would be a benefit for us - we have been crippled by the cost of running and maintaining our own home, and the idea of applying for BR is to become completley debt free - not to still have a £37K loan outstanding. We rushed into purchasing and would like a second chance to get it right.
I have spoke to several different companies about an IVA and the picture we get from them is around £20 per month for maintenance which would include any car damage and house damage, which as I have said, has cost me £500 in the last three month, so I would have been without my car, washing machine and a bed for a prolonged period of time!
Paul:
I have reviewed rental prices in the area, gone through income and expenditure already both through an IVA and BR. One of the biggest problems I have is that the flat is a group of 26 on an estate, and these have not been selling over the previous 24 months - so selling would not be an option as it would not progress my situation at all.
Any more thoughts following that information guys?
Thanks |
| Ian Richards |
Posted - 03 July 2008 : 23:35:57
Hi Darren
Ive listed your questions below and my take on them
1. How difficult will it be getting rented accommodation if we lose the house, after being declared BR?
Very difficult if you go through a letting agency as they will do a credit search, so it would be best to try and sort that out first before going BR!
2. Will I be able to keep the internet at home as its needed for our jobs?
Yes, generally not a problem.
3. We will have around £800 spare a month after the BR if we move into rented accommodation, what will be taken from this after the BR?
How do you know how much your rented accommodation is going to cost you and what your new outgoings are going to be? Generally the Official Receiver will be looking to take between 50/70 of your surplus income.
4. How do I start all of this, and what happens with the house – how do we go about getting out of the house and it being repossessed?
The best way would be to deal with the handover of the keys back to the Mortgage lender before you go BR as it makes life a little easier.
Hope this helps |
| Reviva UK |
Posted - 03 July 2008 : 23:30:25
Hi Darren
the key to all of this is firstly understanding each of the solutions to debt ( DMP, IVA, Refinance & Br ) and how each impact you and the family.
Incidentally you would be able to remain i the house in Br as there is no equity to loose but you would need to maintain the secured charge until the house is sold.
Steps to take;
1. do a detailed Income & expenditure for the 4 scenarios ( IVA with & without house, Br with & without house ) and review what is important to you and the family.
Then you need to get a plan together and get everything organised ( ducks in a row)
If you decide on Br I would suggest you have a free chat with a Br specialist to help you get a plan together.
However it is worthwhile reviewing the IVA solution as well.
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
| melanie_giles |
Posted - 03 July 2008 : 23:27:41
An IVA will give you allowances for all of those expenditure areas you mention, so it might be worth trying other companies to compare the advice.
If you do eventually plump for bankruptcy, you may find difficulties in getting a tenancy, but I take the view that there is so much surplus property on the rental market at the moment that landlords cannot be too choosy.
If you have £800 per month spare, why are you considering bankruptcy? You could pay all of your debts in full within a five year period, and could struggle to persuade a judge to make an order in the first place.
You will be allowed the retain the internet, but I strongly recommend you take further professional advice first as it seems to me that you really do not need to be bankrupt.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
|
|
| bankruptcyhelp.org.uk Forum |
© bankruptcyhelp |
 |
|
|
|
|
 |
|
|
|
|
|
