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| T O P I C R E V I E W |
| scared |
Posted - 06 October 2008 : 18:06:58
My OH and I filed for BR in July. We are three months in arrears now on mortgage and secured loan. No equity in property so it will be repossessed.
We are hoping to rent a property soon, but don't know exactly when. My OH had a call from the secured lender today saying that if we pay £10 - £30 into our account, it will stop them taking any action for at least a month. Has anyone ever heard of this? I would think they have to go to Court for repossession anyway, and then does the Court give 28 days? Am just worried about the timing of all this. We haven't had any papers relating to repossession yet. Should we pay money in? My first instinct is not to pay anything at all and just await repossession.
Also, if you "hand back the keys", do the lenders have to go to Court for repossession anyway, or is this something different?
Any advice would be gratefully received. |
| 15 L A T E S T R E P L I E S (Newest First) |
| frosie90 |
Posted - 21 February 2009 : 19:06:41
Update. I have decided to go for BR. Gonna carry on my mortgage payments and find rented accommodation then file for BR. I have been advised to carry on mortgage payments until I find rented accommodation so dont have the hassle of paying 6 months in advance or have BR on my record. I think that because my house is in negative equity, once I find somewhere I can voluntary relinquish my house or just not pay mortgate and the shortfall will be included in my BR. But how will they know what the shortfall is if it takes ages for the Mortgage provider to sell the house? And also if I dont pay mortage then I would still be liable for standing charges on utilies if house is still in my name?
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| frosie90 |
Posted - 08 February 2009 : 13:53:50
Thanks both, just talking to people with experience has helped me, so much appreciated. I will be making a very careful and considered decision this week about whether to opt for bankruptcy. Well, careful and considered, but probably will be a necessary action rather than a decision. Thank you for the advice too about the banks. Will keep you posted.
quote:
Originally posted by debtrider
Hi frosie90
If you are going bankrupt then your new bank account with natwest would almost certainly be closed, even if it is a basic bank account. There are only 2 basic bank accounts that I know of who are bankrupt friendly and and that is barclays or the co op casminder account that I have.
So if you are going down the bankruptcy route draw all you money out of the natwest account, close it down and open a co op cashminder account.
debtrider
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| debtrider |
Posted - 08 February 2009 : 10:00:27
Hi frosie90
If you are going bankrupt then your new bank account with natwest would almost certainly be closed, even if it is a basic bank account. There are only 2 basic bank accounts that I know of who are bankrupt friendly and and that is barclays or the co op casminder account that I have.
So if you are going down the bankruptcy route draw all you money out of the natwest account, close it down and open a co op cashminder account.
debtrider |
| Niobe |
Posted - 08 February 2009 : 09:50:00
I don't think they will be able to dip into your new banks for any of their debts.
They can take money from your old account if they are a creditor, to offset against any monies you owe them (Halifax did that to me once with £34 taken against a debt of £23,000!), but if they could take from another one, we'd all be stuffed!
As debtrider says, if you are in negative equity then your house will be safe as long as you keep up the mortgage payments.
The glimmer gets brighter all the time |
| frosie90 |
Posted - 08 February 2009 : 00:41:30
funnily enough I have opened my new account with Nat West having been originally with Lloyds. Obviously at the moment all fine as far as credit rating (although going to be seriously damaged over next few days!!) My pet insurance and one of my loans is with Lloyds, I will just ring them and change cos I suppose people change accounts for all sorts of reasons. Thank you for your advice. It is so useful talking to people who have experienced similar situations. Will wait for my conversation with IVA people about the house. I feel really sad but think it only my sofa, cats, fish, cupboards etc, that I like about my house so all transportable!! Thanks again.
quote:
Originally posted by debtrider
Hi frosie90
Who have you opened your basic bank account with?
I had a bank account with natwest who were included in my bankruptcy and also had life insurance with natwest. I just transfered the direct debit for my natwest life insurance to my new bank account and everthing was OK
debtrider
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| frosie90 |
Posted - 07 February 2009 : 23:40:33
quote:
Originally posted by debtrider
Hi frosie90
Yep the unsecured part will be included, but if I sell up now I will be subject to early payment charge which for the joint £118K secured and £7K was an additional £4K so I dont know what extra they would charge for the secured part if I sold. If is all so confusing, I am getting advice from a reputable, non-profit making organisation, but always more useful speaking to people who have gone through it like you. You are in negative equity from what I have read so there would be nothing for the OR to take in bankruptcy, so your house would be safe.
I must admit I am a little confused when you mention the unsecured part of your mortgage. So I probably don’t have enough experience to comment on this, maybe one of the experts can throw some light on this.
Unless I am missing something here all unsecured debts can be included in your bankruptcy.
debtrider
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| debtrider |
Posted - 07 February 2009 : 23:37:12
Hi frosie90
Who have you opened your basic bank account with?
I had a bank account with natwest who were included in my bankruptcy and also had life insurance with natwest. I just transfered the direct debit for my natwest life insurance to my new bank account and everthing was OK
debtrider |
| frosie90 |
Posted - 07 February 2009 : 23:22:03
I also meant to add that my neutral advisor has told me to open a new basic bank account which I have now done and will soon be chased by my previous bank for payments like Overdraft interest, loan and c/card payments etc.(all of which have been paid to date but now new bank I am only paying the Primary debts) Some of my regular suppliers, like pet insurance, are associated with my previous bank, if I ring the bank's insurance company to inform them of my new, different bank for direct debit purposes, can they take money for other debts? |
| debtrider |
Posted - 07 February 2009 : 23:19:11
Hi frosie90
You are in negative equity from what I have read so there would be nothing for the OR to take in bankruptcy, so your house would be safe.
I must admit I am a little confused when you mention the unsecured part of your mortgage. So I probably don’t have enough experience to comment on this, maybe one of the experts can throw some light on this.
Unless I am missing something here all unsecured debts can be included in your bankruptcy.
debtrider
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| frosie90 |
Posted - 07 February 2009 : 22:54:31
quote:
Originally posted by debtrider
Hi Frosie90
Thank you Debtrider for your response. I would definitely have more than £99 if I go BK as all the things other than utilities and mortgages would be written off. As I said in my previous thread I don't want to appear to be a person who wants something for nothing but the reality of it is that if they wrote off my credit cards, loans, overdrafts etc that I would then appear "well off". I would be more than prepared to pay something then. I have just really worried about the house and what you said is what I have considered. If I miss mortgage payments then they will automatically repossess my house but I am worried that they will not recoup the difference between the selling price and what I owe on the secured aspect of my mortgage and also whether they will be difficult with me as I intend to include the £7k unsecured aspect of my mortgage with the IVA or what I really need to know is whether I can include the whole lot in a BK? Basically my mortgage is now about £125K, £118K secured, £7K unsecured. My house now is probably worth getting onto less than £100K. If I repaid my mortgage now it would cost me £129K if before fixed rate ends.
If you are going down the bankruptcy route and have never missed a payment on your mortgage but have no intention in keeping your house. I would advise to stop paying your mortgage now and save up to rent a place before going bankrupt.
On the other hand if you want to keep your house and feel you can get someone to purchase the BI in it then that would be the way to go. If your house is in negative equity then there should not be a problem. If there’s some equity in your house then you would need to get an estimate of how much and can anyone buy the BI.
If you have some disposable when bankrupt over £99 then you may be subject to an IPA for 3 years. If you have enough disposable income to go for an IVA then that might be the route to take. As far as I understand in an IVA most if not all of your disposable income is taken, and not so many expenditure allowances are made.
I enquired about an IVA, but after taking some advice there was no way I could afford the repayments for an IVA and unfortunately had to go bankrupt.
debtrider
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| frosie90 |
Posted - 07 February 2009 : 22:42:14
sorry Kallis, I added a little to my original posting after your response. As far as I am aware, I will be expected to pay an affordable amount if I go BK, I think juggling with figures that I would be able to offer/pay an acceptable amount and at least have something left. My main problem is what to do about my home, I love it because I have kept it on my own for over 12 years and feel very proud of it but I am going to have a difficult situation in 3 years time if I take an IVA as it may still be in neg eq. and I don't know enough about BK as to whether I can just give it up, which is what "Scared" posted on a different link. I have always worked hard and never expect something for nothing so you can imagine that I am currently struggling with the whole magnitude of making a choice of what to do. quote:
Originally posted by kallis3
I have no idea how much disposable income you would have left if you went BR.
Why don't you ring a couple of other companies up? Visit www.iva.com and there are lots of reputable companies on there. The advice is free, they won't force you into anything you don't want to do and they will go through all the options available to you.
The glimmer gets brighter all the time
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| debtrider |
Posted - 07 February 2009 : 22:33:58
Hi Frosie90
If you are going down the bankruptcy route and have never missed a payment on your mortgage but have no intention in keeping your house. I would advise to stop paying your mortgage now and save up to rent a place before going bankrupt.
On the other hand if you want to keep your house and feel you can get someone to purchase the BI in it then that would be the way to go. If your house is in negative equity then there should not be a problem. If there’s some equity in your house then you would need to get an estimate of how much and can anyone buy the BI.
If you have some disposable when bankrupt over £99 then you may be subject to an IPA for 3 years. If you have enough disposable income to go for an IVA then that might be the route to take. As far as I understand in an IVA most if not all of your disposable income is taken, and not so many expenditure allowances are made.
I enquired about an IVA, but after taking some advice there was no way I could afford the repayments for an IVA and unfortunately had to go bankrupt.
debtrider
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| Niobe |
Posted - 07 February 2009 : 22:28:25
I have no idea how much disposable income you would have left if you went BR.
Why don't you ring a couple of other companies up? Visit www.iva.com and there are lots of reputable companies on there. The advice is free, they won't force you into anything you don't want to do and they will go through all the options available to you.
The glimmer gets brighter all the time |
| frosie90 |
Posted - 07 February 2009 : 22:11:40
Hi, thanks for reply. State of panic in that they worked out that I would have about £18 disposable a week after essentials which although I should not scoff at this because I know there are people with far less but it does not allow me anything for remedial work around the house, daft things like a fish filter!!! I love my home but feel that I have stagnated as it is clean and tidy but needs so much doing to it. I don't go out and de-stress from a very stressful job so basically I feel that I am completely swamped by past mistakes etc. and look for a total new start. I am not looking at BK as a way of absolving myself of debt but really feel that my current situation is making me ill. I feel really confused about the whole house situation, mortgage, neg equity etc. The fish filter is just a flippant example but really things like my travel to work is the cheapest form so it takes me 3 hours a day (return) rather than driving (because of the associated costs with having a car) or using a train. I have really economised. My whole debt situation is due to being taken for a ride, helping others out at my own cost, a lesson that I have truly learned.
quote:
Originally posted by kallis3
Can I ask why you feel an IVA will keep you in a state of panic and limitation?
Yes, you have to make payments for 5 years, but you are allowed to have a life, and as long as you choose the right company and the payments are affordable it is a good way of paying back some of your debt.
If you do go bankrupt, you will be expected to make payments for 3 years, and these are also based on your disposable income.
The glimmer gets brighter all the time
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| frosie90 |
Posted - 07 February 2009 : 22:02:06
quote:
Originally posted by kallis3
Can I ask why you feel an IVA will keep you in a state of panic and limitation?
Yes, you have to make payments for 5 years, but you are allowed to have a life, and as long as you choose the right company and the payments are affordable it is a good way of paying back some of your debt.
If you do go bankrupt, you will be expected to make payments for 3 years, and these are also based on your disposable income.
The glimmer gets brighter all the time
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