| T O P I C R E V I E W |
| wildberry |
Posted - 13 July 2008 : 11:01:36
hi,have posted before but am now unsureabout what to to with my house as going bankrupt soon.The house is in negetive equity due to the secured loan we have on it.We could carry on paying both mortgage and loan after bankruptcy but would leave us with no disposable income for years or we have been offered a rented house for half the cost of the mortgage and loan.Could we just move out and hand the keys back to northern rock and what about the loan we have would these be covered by our bankruptcy for the shortfall.The thought of paying our mortgage and loan for the next 23 years is not good as we are both 40+ and would like to have some of our life back to spend with our family. |
| 8 L A T E S T R E P L I E S (Newest First) |
| JulianDonnelly |
Posted - 14 July 2008 : 12:03:25
Great advice as usual Assist!
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
| John |
Posted - 13 July 2008 : 21:43:44
That's correct. |
| wildberry |
Posted - 13 July 2008 : 20:39:19
we would have about £500 disposable income so would pay 70% of this if I am correct ? |
| John |
Posted - 13 July 2008 : 19:32:40
Within the SoA put the details of your property in section 4 secured showing the value / mortgage or loan amount outstanding and the balance (equity). Put the 1st charge lender in first, with your figures this line would show equity of £40K.
Then in line 2 put the secured loan details. This will show a £30K shortfall.
In lines 1 and 2 of section 4 (unsecured) put the details of both again. In the column headed amount owing just write "shortfall".
There shouldn't be a shortfall for the 1st charge holder in theory but who knows what the property will realise in a quick sale / auction in these troubled times.
Look at your expenditure figures and revise as follows:-
Car tax £15 // Car maintenance £20 // Food (housekeeping) £700 // Clothes £140. I also note you allowed for vehicle maintenance but there's no mention of insurance and MoT. You may also claim for breakdown cover if you have it.
Once you have completed this exercise, what is the DI figure? |
| wildberry |
Posted - 13 July 2008 : 15:29:01
we have 4 children aged 17,13,10 and 7 do you think I could add anything else.also the secured loan (70,000) and mortgage (130,000) amount to 200,000,the house is worth approx 160,000 maybe a bit less.When filling in the soa what do i put in the unsecured section so any shortfall and costs are covered by the BR thanks. |
| John |
Posted - 13 July 2008 : 13:56:36
Normally 3 months arrears before lender can go for repossession.
Then you get 28 days to pay the arrears then the lender applies for an eviction order. So you're good for 4 to 5 months from the 1st non payment which gives you time to accrue some funds.
Some of the expenditures are fact and supportable by rental agreement and bills. Rent, water, council tax, tv licence, do not fluctuate so they have to be fact. The gas & electric, clothes and the food look a little high but I don't know the size of the rental property or the number and ages of all occupants.
The life insurance contributions may be questioned, again haircut allowance depends on numbers (headcount if you will).
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| wildberry |
Posted - 13 July 2008 : 13:39:29
hi,I think we are going to take the rented house and pay an ipo as at least it is not for the next 23 years.If we stop paying our mortgage and secured loan will we have to leave straight away or will we be ok for a month or two.We are going bankrupt at the end of the month.Also would you advise if this I/E looks ok thanks
rent 800
water 60
c/tax 124
tv 11
life ins 36
gas/elec 150
car tax 10
car maint 10
petrol 80
food 600
phones 40
clothing 120
dentist 20
school meals 36
haircuts 10
pets 10
birthdays/xmas 20
holidays 20
school trips 10
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| John |
Posted - 13 July 2008 : 12:15:30
Hi wildberry
you can hand the keys back if you so wish.
I would move into the rental, hand the keys back and then petiition for your BR. As you know the landlord personally I presume the BR would not compromise your rental.
Be aware though that you must include the shortfall figure on your mortgage and/or secured loan in section 4 (unsecured) on your SoA.
Also, as you have said you could just about afford the mortgage / secured loan payments in BR but choose to lower your expenditure via the rental. So would I (as I am some years older than you!!!!!) but by definition that means you will have more disposable income which increases the likelyhood of a 3 year IPA / IPO imposed by the OR/court.
At least that would only last 3 years then your DI is all yours unlike the mortgage. They're not called "mortgages" for nothing.
I think that the literal meaning of mortgage is "until death".
Something like that anyway. |
