Note: You must be registered in order to post a reply. To register, click here. Registration is FREE!
T O P I C R E V I E W
jane.m
Posted - 02 December 2008 : 09:43:29 HI
when the or is looking at the mortgage payments do they work on the same principal as an iva that it can be no more than 40% or do they allow more when it is negative equity. If the or feels that the mortgage payment is too high yet you can afford it. Can he try and force the sale of the house so he can get an ipo or is this very difficult to do as if they did force the sale they would be further adding to your debt.
Thanks
2 L A T E S T R E P L I E S (Newest First)
pix1
Posted - 02 December 2008 : 14:50:36 As you are still paying the mortgage in bankruptcy yu must do everything you can to keep the place for quite some time into the future, maybe years, for the values to increase so that you have positive equity. Otherwise you might as well have given up the place and not paid the mortgage as of the date of the bankruptcy order. The mortgage company would be likely to pursue you for any mortgage shortfall from a future sale as you will likely still be liable. The OR will retain an interest for three years from the bankruptcy order date. I don't know if you have arrears which are causing the payment to be higher than usual. It should be the case that the OR will allow a repayment of capital and interest of a reasonable proportion of your income. Please se the Insolvency Service website Household Expenditure Spreadsheet http://www.insolvency.gov.uk/DocumentLibrary/Policy/Excel/Household%20Expenditur.xls
It says under mortgages that they are 'variable'.
Depending on the circumstances you might need someone to buy out your beneficial interest in the property, though i think this would only be necessary if you ended up - within three years - with plenty of positive equity. In today's house prices climate that is unlikely.
As long as you are in it for the long haul and do not default on the mortgage in the future you should be alright with a similar figure to IVA's.
Needafriend
Posted - 02 December 2008 : 11:05:36 Hi Jane
Not that i am aware of do the OR work along the same lines as an IVA with regards to mortgage payments. If you can afford to pay it then i think the OR will have no interest, they cant make you leave but if the payments are exceptionally high they might query it.
They wont make you sell to free up money as like you have said that will make your debt higher and that is not want they want to do.
Hope that helps
Jo x
For more info on how i have come through bankruptcy and for links to help, you can read my blog here called: Needafriend's Info on Bankruptcy :-) http://debtfreejo.blogs.bankruptcyhelp.org.uk/ Needafriend says: Live life to the full, take life by the horns and live a little, otherwise life would be so boring!
