| T O P I C R E V I E W |
| Kirsty.tr |
Posted - 29 May 2012 : 20:08:09
Hi, myself and husband are in negative equity in a jointly owned house. We are considereing facing bankruptcy to relieve us of our business debts and personal guarantees to release us from a long lease. Our house is part renovated and as such is in neg equity. RICS valuation £400k. O/s mortgage int only is £422k plus secured loan of £45k. Our repayments are £1800 mortgage and £478 secured loan. WE WANT TO KEEP OUR HOUSE and want to buy the BI out straight away but we have been told by CAB that there may be a problem with this due to the high amount of mortgage and secured loan monthly payments in comparison to renting another property -I am confused and will have to soldier on if the house is at risk. we want to finish renovating our house in our own time without the risk of losing it later on. Any advice would be welcome. |
| 15 L A T E S T R E P L I E S (Newest First) |
| year 2029 |
Posted - 07 June 2012 : 13:10:23
You definitely need professional advice as everyones case is different.
As I said, I had mortgages higher than yours, and until I gave some up, I was expected to pay them.
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Views expressed are my own personal views, based on what has happened during my own BR process unless otherwise stated.
Professional advice should always be sought. |
| Viki.W |
Posted - 06 June 2012 : 18:08:44
The OR would still knock the payments down, but if it was just your hubby that declared bankruptcy, then you could top up the payments yourself if you could afford to do that (bear in mind that you would need to repay your debts and any joint debts too so financially you may struggle)
As I've said before, I really think you need to chat all of this through with an expert and also see if bankruptcy is your best option or not.
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 |
| Niobe |
Posted - 06 June 2012 : 17:40:08
I would speak to an expert about this, they will be able to help.
Follow through
Make your dreams come true
Don't give up the fight
You will be alright
'Cause there's no one like you in the universe
|
| kirstykirsty |
Posted - 06 June 2012 : 17:13:23
Sorry meant to say.. if only my husband went BR and not us both. Thanks. |
| kirstykirsty |
Posted - 06 June 2012 : 17:12:15
Hi, can anyone tell me if the situation regarding my house would be different if only my BR went BR. |
| year 2029 |
Posted - 06 June 2012 : 12:16:23
I agree that they need professional advice.
I also had a secured loan attached to one of my properties on top of the mortgage.
I was expected to also pay this, on top of the mortgage as a priority debt.
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Views expressed are my own personal views, based on what has happened during my own BR process unless otherwise stated.
Professional advice should always be sought. |
| Viki.W |
Posted - 05 June 2012 : 07:41:45
Unfortunately, the OP also has a secured loan which makes the secured payments £2278. If they can rent for £1500, then they could pay back about £28k in an IPA (Debtinfo mentioned this)
It's not about whether they can afford it, it's about freeing up money for an IPA. I'm only posting from my experiences with clients and you are right, they won't know until the OR deals with it.
But, again, I advise speaking to an expert to chat through all of this and options.
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 |
| year 2029 |
Posted - 05 June 2012 : 04:57:28
Viki
As the Op has stated, they can afford their secured loan payments, and wish to keep their house.
£1800 mortgage against £1500 rent isn't drastically different.
Unfortunately, they wont know exactly how the OR will deal with their until their statement of affairs is dealt with.
All the best Trabon, I hope you get to keep your home.
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Views expressed are my own personal views, based on what has happened during my own BR process unless otherwise stated.
Professional advice should always be sought. |
| Niobe |
Posted - 03 June 2012 : 14:41:22
I agree with Viki - please speak to an expert (details on the left hand side of the page) to sort out what is right for you.
Follow through
Make your dreams come true
Don't give up the fight
You will be alright
'Cause there's no one like you in the universe
|
| Viki.W |
Posted - 03 June 2012 : 14:19:08
Year 2029,
The OP has stated that both her and her husband are going to be declaring bankruptcy and they have one child and can rent for cheaper in the area, so as Debinfo has posted, the OR would probably not allow all of the expenditure for the mortgage and secured loan in their case.
However, this might not be the same for someone else declaring bankruptcy, it all depends on the needs of the family etc.
Unless a family member or friend could make up the difference for them whilst they are paying an IPA it is likely that the home would be repossessed.
Trabon/Kirsty, please have a chat with an expert to go through your options.
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 |
| debtinfo |
Posted - 03 June 2012 : 13:22:26
The OR would not physically apple for an order of sale, but what they can do is only allow a smaller amount for the mortgage, leading to a higher IPA which can be enforced by an attachment of earnings. Now that would obviously leave not enough to pay the mortgage and lead to the enevitable repossession, unless someone else subsidesed them.
You are right that peoples situations are relative both in the area they live and the size of their family. That is why there is no absolute value for a limit, It is judged on what is reasonable for the size of family in the area they live. In this case the OP has already stated that a reasonable rent fo the area is much less |
| year 2029 |
Posted - 03 June 2012 : 12:12:33
Debtinfo,
Can the OR make you sell your family home if you are in negative equity?
Surely the OR would ask everyone to 'downsize' their house to free up extra money if that was the case?
Although £1800 is a lot for a mortgage, everything is relative.
We dont know what their disposable income is, and they have already said that their husband can afford those payments.
My mortgages were well in excess of £1800, and if I could have afforded them, I would of had to pay them all as priority debts. Instead I gave some up for reposession.
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Views expressed are my own personal views, based on what has happened during my own BR process unless otherwise stated.
Professional advice should always be sought. |
| xmas baby |
Posted - 01 June 2012 : 11:54:45
Hi Kirsty,
I must admit £1800 sounds like a huge amount for a mortgage and similarly with rents of £1200 - £1500. Which part of the country do you live in for those kind of rents.... London? I tend to agree with Viki in that the OR will probably not accept that high amount of mortgage (or rent). I also think you might have to put a hold on any renovation work for the time being.
xmas baby |
| debtinfo |
Posted - 30 May 2012 : 18:19:29
Part of bankruptcy is about repaying as much to creditors whilst maintaining a reasonable lifestyle. If you are essentially paying £750 -£1000 pm more than you need to for a suitable residence then that is not reasonable that is £36,000 over the live of an IPA that could be being paid into the bankruptcy. |
| trabon09 |
Posted - 30 May 2012 : 16:34:51
Hi,
So if the trustee/OR doesnt let us pay that then this will prevcent us from paying the mortgage /secured loan and the house will get repossesed without these payments and we will lose it anyway??? so it looks like BR is not going to work for us??? I thought that neg equity would be in our favour - I am still confused.
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