| T O P I C R E V I E W |
| yucel.80 |
Posted - 02 October 2010 : 08:08:09
i have debts over 190000 inc loans & credit cards n interest, my house is worth 240000 with mortgage of 185000. there is charge of 50000 on the property. i want to go bankrupt. the forced sale value of my property is 185000. my brother wants to buy the house when i go bankrupt. can he buy it of the offical receiver. what price can he buy the house at or can he make them an offer. |
| 15 L A T E S T R E P L I E S (Newest First) |
| Bigal4787 |
Posted - 04 November 2010 : 09:57:52
Hi Yucel,
as Richard mentioned, you have to bear in mind things that could happen in the future such as your brother (or another relative)falling out with you who had purchased the BI, which could cause problems further down the line.
Even though the equity is about £5,000, it is at a level that could be problematic for the OR, as an IP would not take it on due to the low margins involved(nearly £2,000 has to go to the OR for their costs), which opens up the possibility of strengthening your negotiating position to make a reasonable offer to the OR for the BI(i.e. as with lots of things you don't have to initially offer £5,000 for the BI), and it may be worth doing it before the case gets transferred to the RTLU, who are a bit more hard nosed when dealing with BI.
Big Al |
| Richard P |
Posted - 03 November 2010 : 11:59:54
Hi Yucel
positioning of a property during and after BR is very important.
As you have equity in the property I would suggest that you have a free chat with one of the experts.
if your brother was to purchase the BI, what happens if you fall out with him, what if he demanded the equity ?
you have 3 experts mentioned on your thread Reviva, Big Al and Vicki have a chat and reassure yourself of the process
regards Richard |
| chester2005 |
Posted - 01 November 2010 : 02:14:16
you will still be responsible for the mortgage and the repayments and the secured debt will remain secured against the house.
when BI is bought you are buying the equity in the property at that time ie. value less debt. and the potential increase in equity in the future.
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurhman)
RevivaUK and Paul Johns helped me through it all i can't recommend them enough!! |
| yucel.80 |
Posted - 31 October 2010 : 20:07:27
thanks everyone for your replies
really appreciated.
i might have around £5000 equity in the house when you total all the charges on the property.
what will happend during the bankrupcy? as there is bi, can this be purchased by my relative or me, n if so will the tittle deeds be transfred to my relative and will they be responsible for repayment of the mortage.
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| Bigal4787 |
Posted - 29 October 2010 : 14:32:26
Hi Yucel,
missed the fact that you were the sole owner, as chester2005 said the OR's costs are £475, the reason being that in addition to the BI, you are also having to deal with the legal title which also vests with the OR on bankruptcy.
You can opt for getting your own solicitor to deal with this process, but it is possible to do it yourself as the following link shows:
http://forums.moneysavingexpert.com/showthread.php?t=2471695&highlight=
Obviously it's entirely up to you, but it would save extra expense on your own solicitor. The only thing you'd do when TLT ask who your agent is, is to provide your details. TLT in Bristol are the solicitors the OR uses on their side.
Big Al |
| chester2005 |
Posted - 29 October 2010 : 14:11:26
as Big Al has said except ..
Legal Fees will be £475 approx as you are the sole owner
£211 is only for joint owners
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurhman)
RevivaUK and Paul Johns helped me through it all i can't recommend them enough!! |
| Bigal4787 |
Posted - 29 October 2010 : 00:46:06
Hi Yucel.80,
as Viki.W said as the property is in negative equity, your beneficial interest(BI) can be purchased for £1 plus the OR's costs of £211.
Once the OR becomes trustee, you should then get a letter called an MP1 offering this, along with what you need to do,to buy out the BI.
You'll need:
An up to date mortgage balance + the secured charge
An up to date valuation
£1 for the BI
£211 to cover the OR's costs
The lenders agreement to the procedure
By doing this, creditors will not be able to make a claim on your property if it returns to equity
Big Al |
| Viki.W |
Posted - 28 October 2010 : 15:55:16
Hi yucel.80,
As the house is in negative equity, then you can purchase your own beneficial interest back from the OR for £1 plus their solicitors fees and your solicitors fees.
You will then carry on as normal. The mortgage will still need to be paid and the charging order will remain on the property as this is secured against your home.
Viki Warbrooke
Vincent Bond & Co
If you would like free advice on all options available and help with your bankruptcy petition please contact me at http://www.vincentbond.com/about_us_Viki_Warbrooke.asp
Please read my experience of debt via my blog at http://vikiw.blogs.iva.co.uk/ |
| yucel.80 |
Posted - 28 October 2010 : 11:34:12
thanks big al
the charge is made final. so what happens if i went bankrupt. dose the OR include my house in the bankrupcy n if he dose what happens to the charge. bearing mind that my borther wants the buy the house.
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| Bigal4787 |
Posted - 26 October 2010 : 00:20:47
Hi,
it depends on what type of charge is on the property. If it's an interim charging order then if the creditor hasn't made it a final charging order before the order, then it will be revoked by the court, and will revert to another unsecured debt.
If the creditor has had the charge made a final charging order before the order has been made, then it in effect becomes a secured charge on the property.
Big Al |
| yucel.80 |
Posted - 25 October 2010 : 22:20:56
i have a charge on the property. what happends to the charge during the bankruptcy
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| Bigal4787 |
Posted - 10 October 2010 : 10:22:40
I was going to suggest moving back in before bankruptcy, so that it reverts back to your family home.
When you're interviewed by the OR/examiner, you should be given the option of your BI being purchased. Once the report to creditors is issued, the OR becomes the trustee of your bankruptcy estate, which is when a letter called an MP1 will be sent to you offering that option. There will be 2 copies, with an acknowledgement section for you to sign, indicating whether you or a third party is interested in purchasing the BI.
Big Al |
| debtinfo |
Posted - 09 October 2010 : 20:21:31
It is simply the amount that your share is worth and what the Trustee could get better on the open market. It will be down to you to make an offer that will convince them to sell it to you or your brother rather than reposses and sell it to someone else |
| yucel.80 |
Posted - 09 October 2010 : 20:14:36
thank you bigal
its rented out temporarliy. we will be back in the house when i go bankrupt. can you pls tell me how the BI is calcualted.
thank you
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| Bigal4787 |
Posted - 08 October 2010 : 00:45:10
Unfortunately, by renting the property out, it has ceased to be a family home, and is now tenanted, which means that you won't be able to buy out the BI, as the OR will view it as an investment property, so the OR will appoint their own agent to take over the management of the property and collect the rent, until the lender takes repossession proceedings and possibly appoint their own LPA receivers.
So for your interview, you'll need to provide things like tenancy agreements, monthly rent, gas and electrical safety certificates, tenant details and such like.
Big Al |
