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| T O P I C R E V I E W |
| bic |
Posted - 29 December 2008 : 01:39:06
hi i am new to this i have a few questions re banruptcy.
My husband has apprx£58k debts and myself £35k. We are looking into an iva/bankruptcy. we have a house in neg equity and are concerned we would lose it if we both went bankrupt. can he go bankrupt and i set up an iva. what would happen to house if we both went bankrupt.
sorry to ramble but dont know what is best |
| 9 L A T E S T R E P L I E S (Newest First) |
| Needafriend |
Posted - 29 December 2008 : 15:28:02
Hi just found this dont know if it helps at all:
31.7.36 Excessive mortgage payments
Mortgage payments may be extremely high where the home is heavily mortgaged and/or when arrears of mortgage payments are having to be met.
Where the bankrupt is making the entire mortgage payment against a property which is jointly mortgaged, and no contributions are being made by third parties, the official receiver should take this into account when assessing the bankrupt’s capacity to make payments under an IPA and "disallow" a fair share of the payments being made in respect of the joint liability.
If the official receiver’s income payments calculation taking in to account allowable reasonable expenditure, suggests that the bankrupt has sufficient surplus to collect under an IPA/IPO but the bankrupt wishes to continue making excessive payments and/or payments on behalf of third parties without receiving any contribution from them, the official receiver may consider whether to apply for an income payments order against the bankrupt rather than an IPA, following the judgment in Albert v Albert (A Bankrupt) (1996) BPIR 232 [note 19]. The official receiver must report the full facts to the court to allow the court to decide whether the bankrupt's claim that the expenditure is reasonable should be allowed. (See paragraphs 31.7.19 and 31.7.24 for further information). There is no case for allowing the pursuit of IPAs that will lead to the bankrupt becoming homeless.
Where suitable (not necessarily equivalent) rented accommodation is available at less than the cost of the mortgage payments, a view will need to be taken by the official receiver as to whether for the purpose of assessing the bankrupt's real disposable income an amount equivalent to the rented accommodation is allowed rather than the total mortgage repayment amount claimed by the bankrupt. A hard and fast rule cannot be set down as to what is excessive due to regional variations in the costs and availability of rented accommodation. Also, it is likely that a deposit will be required to be paid when "going in" to a rented property which may prevent this course of action. As a result of the requirement to pay a deposit when entering a rental contract, it may be necessary to delay the commencement of an income payments agreement to enable the bankrupt to accumulate the necessary funds, this action in the long term being beneficial to the estate by increasing the funds available to be paid later under the IPA. However, any delay in commencement of the IPA must take in to account the fact that the IPA has to be signed by the bankrupt and the official receiver/trustee prior to the date of discharge, as detailed at paragraph 31.7.2.
Where, at the date of the bankruptcy order, the bankrupt is living in rented accommodation but is also renting out a property in which he/she has a beneficial interest, the official receiver/trustee should realize the beneficial interest as an asset of the bankruptcy estate immediately and in the meantime include rental income received by the bankrupt in the IPA/IPO calculation (see paragraph 31.7.13). The official receiver will need to consider whether it is reasonable to include both expenditure for mortgage repayments and rental costs when assessing the bankrupt's expenditure.Where the official receiver or trustee has sought to disallow part of the mortgage repayments claimed by the bankrupt and an IPA cannot be agreed as a result, the official receiver or trustee may consider applying for an IPO.
Jo
x
Wishing you all a Happy Debt & Worry Free 2009
21 Weeks down
31 to go
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!
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| jane.m |
Posted - 29 December 2008 : 14:29:47
HI
sorry too butt in but what can the or actually do if you are in negative equity and your payments are too high. If they force a sale they would be adding to your debt.
Thanks |
| bic |
Posted - 29 December 2008 : 14:07:26
mortgage £153000 monthly payment £510 21 years left
secured loan £27000 monthly payment £400 7 years left
thanks |
| Reviva UK |
Posted - 29 December 2008 : 14:01:00
hi
grateful for the following info too
1st mortgage amount owing
1st mortgage monthly payment
2nd mortgage amount owing
2nd mortgage amount owing
sometimes the OR will get a little grumpy if the total monthly mortgage payments are too high becasue they would prefer you to pay a larger IPA instead.
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
Real People ..... Real Debt Solutions
www.revivauk.com |
| bic |
Posted - 29 December 2008 : 13:52:03
yes we have 3 children,13,10 and 8.
we have approx £10-£15k negative equity |
| Needafriend |
Posted - 29 December 2008 : 13:43:16
Hi Bic
If you do pay into an IPA for the 3 years the OR would take about 70% so that would be about £420 per month from you.
But that would be for the max 3 years.
Do you have any children?
Jo
x
Wishing you all a Happy Debt & Worry Free 2009
21 Weeks down
31 to go
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!
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| bic |
Posted - 29 December 2008 : 12:10:32
thanks for reply
we both have fairly secure jobs
i am a nurse and my husband is an engineer for bt.
we can afforf our mortage and secured loan. we have £3500 income ans approx £2900 going out for essentials and living costs , so have apprx £600 to pay towards iva or banruptcy ipa.
i dont own a car as i am a district nurse i lease one which is paid direct from salary, my hgusband has a company van.
no assets or valuables
we dont know whether my husband shoukld go bankrupt and i do an iva or both do iva or bankrriptcy |
| Reviva UK |
Posted - 29 December 2008 : 09:33:20
Hi
I would recommend you review your total income / expenditure to see what your true disposable income is and which soultions are open to you first.
Secondly you also need to give some thought to the security of your jobs ( credit crunch etc etc ) because an IVA is likely to be for 5 years.
Thirdly how much are your mortgage payments, do you have a second mortgage and how far into negative equity are you.
What type of jobs do you both do?
What other asstes do you have that may be lost in Br :- i.e. cars, timeshare, caravan, Plasma TV etc
As you can see it is difficult to recommend a particular solution without having a good conversation about the situation and all its implications first
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
Real People ..... Real Debt Solutions
www.revivauk.com |
| Needafriend |
Posted - 29 December 2008 : 08:48:48
Hi Bic & Welcome
Firstly if you have a home in neg equity and you can afford the payments then you can keep your home. (secured debts dont get written of in BR but if you dont pay the mortgage etc then you can put it at risk)
Also for that amount of debt it does make sense to declare BR, you would need to service the payments of an IVA for 5-7 years whereas if you declare BR you should be discharged after the year (sooner in some cases), any payments made finish in max 3 years, the house can be bought by a 3rd party for the BI for a fee of £211 plus £1 then that would stay with you.
What is your total income and expenditure and also do you have any other assets?
Thanks
Jo
x
Wishing you all a Happy Debt & Worry Free 2009
21 Weeks down
31 to go
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!
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