| T O P I C R E V I E W |
| darren746 |
Posted - 29 August 2008 : 18:43:01
i am a home owner with negative equity on my property. i have 12 buy to let properties which are a mix in that some make a little income some make a loss, there is a little equity in them all(marginal). I have very large debts in the background, am about to start defaulting and am going to go for bankrupcy. I wanted to know if it is a good idea to go into rented before i declare bankrupt to avoid problems of maybe not being accepted for renting due to credit history or would i run into problems with the OR if i do so before theyve looked at the case? Also what happens to vehicles, we have 2 cars i need mine for work as work unsocial shifts,and my wife has to use a car to take kids to school (or would we have to move my daughter to a nearer school?) my cars value is £1500 my wifes is £6500 (would we have to sell it and get another cheaper one?) Your advice would be appreciated, thank you darren |
| 13 L A T E S T R E P L I E S (Newest First) |
| John |
Posted - 03 September 2008 : 08:38:48
Hi
I shouldn't worry about any of the secured borrowings as I'm sure the lenders are required to carry out whatever checks they deem necessary. If they don't then how can the loan be secured, and secured against what exactly?
Irresponsible lending at it's height!!!
Once you are BR the disposal of the properties by the various 1st charge lenders and the distribution of any sale funds are controlled by the first charge lender and, where there is surplus, the OR.
You've no need to worry.
You must ensure that all properties are listed on your SoA in both the secured section and the unsecured section so that all and any shortfalls are also written off.
Oh, nearly forgot, if your disposable income is £100 or more you will get an IPA. Depending on that figure you will pay 50% to 70% for 36mths unless circumstances change during that term.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
| darren746 |
Posted - 03 September 2008 : 01:27:52
Hi there, 1st was wondering after Br how much would i be expected to pay out of my disposable income. would it be approx 50-70%?
secondly i'm worried about a secured loan on my property. I had a northern rock flexmortgage which should have been cleared when i remortgaged, however a tiny balance was left over. i sent a cheque 2 times but they kept sending it back,and when i tried calling their call centre they were useless so i gave up trying to close the account and ended up keeping the secured debt with them paying about £2 a month. i then took out a secured loan with picture ontop of my main mortgage and paid them for about 2yrs before running into problems with credit cards etc. in the mean time i was still getting letters from northern rock saying i could borrow back £55k,as i was in trouble it was a way of keeping things going but i thought wouldnt be allowed as already had moved mortgage to another lender. So i called them and asked explaining and they said the account is still open so i could ask and any checks required before releasing money would be carried out. they released the money to me. And for the last 2 yrs ive been paying all three. Now what i worry about is that the mortgage and secured loans will add upto more thanmy property if i hand the keys back, so one of them willbe out of pocket,will northern rock say i shouldnt have had the money, although at time on phone they said no problem as checks carried out,or will i be ok as they should have done a credit check. worried theyd be able to take legal action against me saying i shouldnt have asked for the money in my position.
your comments appreciated, thanks darren |
| JulianDonnelly |
Posted - 02 September 2008 : 13:27:08
Hi Darren,
Given a BR situation, any token payments will have no effect on your credit rating.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
| darren746 |
Posted - 02 September 2008 : 13:19:53
also, do you think that before i can get into rented i should make token payments to mortgages companies (buy to let) to try and preserve my redit rating until we're in. rather than pay full amount or not paying |
| JulianDonnelly |
Posted - 02 September 2008 : 13:18:25
Hi Darren,
Admittedly, it is highly unlikely that anyone you owed money to will offer an account. However, these days, the banks do the strangest of things ...
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
| darren746 |
Posted - 02 September 2008 : 13:17:08
Thanks Julian,
was thinking that as i owe money to either those banks companies in the same group i'd have no chance.
cheers darren |
| JulianDonnelly |
Posted - 02 September 2008 : 13:13:40
Hi Darren,
The simple answer is that you'd need to take your ID out for a day in the High Street and try them all. They do seem to take it in turns accepting BR's.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
| darren746 |
Posted - 02 September 2008 : 13:11:12
another question would be which banks or building societies offer an account usable by a bankrupt. i know co-op, barclays do,but i owe these money. i owe RBS money so would that stop me using natwest? i also owe to abbey and lloyds? who would be left? |
| JulianDonnelly |
Posted - 02 September 2008 : 11:59:28
hi Darren,
The best advice is to talk to the mortgage company as a voluntary reposession is rarely as simple as just handing/posting the keys back.
Best to lose the property and get into a rental prior to BR to ensure (a) any shortfall from the property is included and written off in your BR, and (b) most letting agents perform credit checks, so if you wait until after BR, it is not unsusual for them to insist on 6 months up front.
Any banks you owe money to when you go
BR will NOT give you an account post-BR.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
| darren746 |
Posted - 02 September 2008 : 02:57:32
sorry Paul somehow managed to copy your advice and post it again. Thanks for the advice you gave. This may seem like a silly question but how do you actualy go about handing the keys back, and as my house is in-ve equity could i do this with my house to. Was thinking of doing this soon after finding somewhere to rent and then declaring bankrupt.
Do you think this is a good strategy, move into rented, pay essential bills only then to hand back keys on those properties in -ve equity, let the OR deal with others as they are assets.
once bankrupt how willi actually be able to receive my pay as bank accounts are frozen. have heard co-op and barclays doan account for bankrupts but i owe these 2 money,so guess they wouldnt deal with me? |
| darren746 |
Posted - 02 September 2008 : 02:44:57
quote:
Originally posted by Reviva UK
Hi Darren and welcome to the forum
unfortunately the downturn in property values and the significant change in the mortgage market mean that there are many many people in the same boat. We are currently dealing with well over 100 reposessions & property hand backs for investors.
There are a couple of important things to remember:-
1. The OR will look into the conduct prior to Br so is is worth reviewing the strategy of property / equity and potentially start surendering property that is in negative equity before there are court costs involved.
2. Where there is equity involved then it is up to the receiver to deal with these as it is an asset and they may wish to deal with them in a different way o order to maximise the potential equity.
3. worth getting significant documentation together about each property / history of ownership / mortgages / valuations etc etc etc as the OR will be asking for this anyway.
4. provided that you have a requirement for a car then your car at sub £2000 will be OK. If your wifes car is worth £6500 you can either leave it for the OR to recover and provide you an allowance - alternatively you can take control of the situation and downgrade the car to a sub £2000 car.
the balance HAS to be accounted for but you are allowed to use some of these residual funds for the court costs ( £495 each ) and potentially bankruptcy assistance if you feel it is necessary.
Rented Property :- You can also use some of hyour funds for a deposit for your new home and if you are upfront with the new landlord then - on the payment of a larger bond - they are usually ok with challenged credit histories.
Remember that if you are Br you have no other debts and therefore you are 100% likely to be able to pay your rent on time - every time.
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com
|
| Reviva UK |
Posted - 30 August 2008 : 00:50:39
Hi Darren and welcome to the forum
unfortunately the downturn in property values and the significant change in the mortgage market mean that there are many many people in the same boat. We are currently dealing with well over 100 reposessions & property hand backs for investors.
There are a couple of important things to remember:-
1. The OR will look into the conduct prior to Br so is is worth reviewing the strategy of property / equity and potentially start surendering property that is in negative equity before there are court costs involved.
2. Where there is equity involved then it is up to the receiver to deal with these as it is an asset and they may wish to deal with them in a different way o order to maximise the potential equity.
3. worth getting significant documentation together about each property / history of ownership / mortgages / valuations etc etc etc as the OR will be asking for this anyway.
4. provided that you have a requirement for a car then your car at sub £2000 will be OK. If your wifes car is worth £6500 you can either leave it for the OR to recover and provide you an allowance - alternatively you can take control of the situation and downgrade the car to a sub £2000 car.
the balance HAS to be accounted for but you are allowed to use some of these residual funds for the court costs ( £495 each ) and potentially bankruptcy assistance if you feel it is necessary.
Rented Property :- You can also use some of hyour funds for a deposit for your new home and if you are upfront with the new landlord then - on the payment of a larger bond - they are usually ok with challenged credit histories.
Remember that if you are Br you have no other debts and therefore you are 100% likely to be able to pay your rent on time - every time.
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
| debtfreejo |
Posted - 29 August 2008 : 20:40:09
Hi Darren,
Firstly Welcome!
I cant really answer these for you but hopefully one of the experts or another forum member with more knowledge will be along shortly and help you out.
Hang on in there. :)
JO
"There is a light at the end of the tunnel, if you cant find it get a brighter torch or change the batteries" |
