| T O P I C R E V I E W |
| wayned |
Posted - 03 April 2009 : 21:35:17
If I were to declare myself bankrupt and move back into my mothers house:
1. Would the bankruptcy affect direct debits I have with my bank. ie gym memberships. Can they stop you from having this membership, and insist the money goes to them?
2. Did I read correctly that if the property was not sold within 3 years it comes back into my possession? If so, what about the original mortgage? Surely I would now be in arrears? |
| 9 L A T E S T R E P L I E S (Newest First) |
| gally |
Posted - 04 April 2009 : 13:38:50
as always in your debt for your advise thanks very much john ( no pun intended )! |
| John |
Posted - 04 April 2009 : 13:27:46
Hi
the first step is always to notify the OR in writing that a spouse / partner / 3rd party is interested in buying BI in readiness for when the OR comes to deal with the property.
Next the OR will request a valuation which should be submitted.
Then the OR will, having considered the matter, write and offer the BI for a given sum. Up to that point the sum required by the OR to purchase the BI is unknown and no cheque should be submitted until the OR has made the figure known.
John White
England Jackman & Spacey |
| gally |
Posted - 04 April 2009 : 12:34:01
thanks for that john so really my next step is to send these copies and mortgage statement to my or office with an explanation letter and perhaps a cheque written by third party of course requesting my wifes purchace of bi
sorry to pester you on this matter but looking through all the past questions i cannot find the correct procedure / forms to fill in etc
i am planning on doing all this via written correspondence in my wifes name asking her to sign where applicable and really dont wish to have any verbal communication with the or if poss any words of wisdom greatly appreciated |
| John |
Posted - 04 April 2009 : 11:57:01
Hi gally
it's yet another grey area really.
In truth the OR would prefer a surveyor's valuation report. The next best thing is to have 2 or 3 written estate gent's market appraisals. These are readily accepted on the basis that you may not be in a position to pay for a surveyor plus the fact that the local estate agent should know the local market. This has become such a common way of supplying the supportive evidence the OR requires that in many areas the estate agents have become wise to the fact that where written confirmation is requested it for purposes other than to market the property. As such they want paying but may deduct the cost if you do in fact market the property and ultimately sell it. In a way I guess you can't blame them for this.
Next comes the internet and how much kudos the OR will give such valuations. In my view they are unlikely to be as accurate as the first 2 options and the OR will probably take the same view. If the site's that you have been looking at were to be valuing your property higher than your own estimate I doubt you would consider, naturally, using this as a means of support.The OR may think the same.
In fact the reason in section 8 of the SoA that you have to note the property type (terraced/ semi / flat / bungalow etc) and how many bedrooms there are is precisely so that your submitted valuation can be checked easily online by the OR.
Having said all this, the online valuations are free and if they are submitted but not accepted the OR will say so. In this event you could opt for either of the other options, but the online valuations might just work so it may well be worth a try.
John White
England Jackman & Spacey |
| gally |
Posted - 04 April 2009 : 09:20:36
john i am having trouble getting local estate agents willing to quick sale value the house without a fee , small area around here , all want around £150 for the quote in written form . before i pay this will the or office accept internet prices which i have to admit i am liking more and more each week ps i have my full outstanding mortgage statement up to date ready to send off |
| John |
Posted - 04 April 2009 : 08:24:30
Hi wayned
regarding the property, the only time a property is likely to vest back in the bankrupt at the end of the 3 year term is if it is in negative equity now and remains so for the next 3 years.
In any event the mortgage lender will repossess the property and sell it, irrespective of the OR's position, or the level of equity, if you do not keep up with the monthly mortgage payments.
John White
England Jackman & Spacey |
| chester2005 |
Posted - 04 April 2009 : 07:38:36
So long as the COOP is not one of your creditors then the Cashminder account is very BR friendly.
There are other options but COOP seem to be the best.
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurman)
Life's too short!!! |
| Niobe |
Posted - 03 April 2009 : 22:16:45
As regards your bank, if it is one of your creditors, you will need to change accounts.
The Co-op is a recommended bank.
The glimmer gets brighter all the time
Jan
xx |
| chester2005 |
Posted - 03 April 2009 : 21:48:57
Firstly welcome to the forum
1,i don't think gym costs are allowed as legitimate outgoings so if you wanted to keep it the cost would have to come out of what you are left with after Disposable income is calculated
2,i'm not sure but it would be unlikely if there was equity in property for the OR not to realise it within 3 yrs
If there is no equity in the house you can be offered the Beneficial interest in the property if you want to keep it , if you don't then it would be repossessed and sold with any shortfall being covered in BR
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurman)
Life's too short!!! |
