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| T O P I C R E V I E W |
| g.and t |
Posted - 13 September 2009 : 15:53:23
I have a flat with mortgaed debts of £90,000. In the current market it would probably only sell for £60,000. How would this be treated in bankrupcy please? |
| 9 L A T E S T R E P L I E S (Newest First) |
| MatthewJames |
Posted - 13 September 2009 : 19:39:10
Thank you! I'll do that. To be honest just making the decision feels like a weight has been lifted! I'm going to rent a flat and stop paying my mortgage in order to start the procedure rolling. |
| debtinfo |
Posted - 13 September 2009 : 19:35:35
forgot to say, that as well as the help on here you should seek free independent advice from the likes of CAB, CCCS and national debtline |
| debtinfo |
Posted - 13 September 2009 : 19:32:32
no probs, if you have anymore questions feel free to ask |
| MatthewJames |
Posted - 13 September 2009 : 18:47:25
Thats great. Thanx so much!
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| debtinfo |
Posted - 13 September 2009 : 18:23:16
Yes after the repossession it will fall into the bankruptcy. The OR will assess your income and expenses as it is and will ask for between 50 and 70% of your surplus if your surplus if more than £99pm. this will last for 3 years. If your circumstances change (i.e. if you move out) you will be reassessed and the IPA changed accordingly. The OR will not stop you moving out but whilst you are at your parents he/she will expect a higher contribution |
| MatthewJames |
Posted - 13 September 2009 : 18:13:23
That's great thanks. I think I am probably best getting the repossessiondone, as I can't afford to keep it, even after BR. So if the flat is sold for, say £60,000, are you saying all money owed will fall within bankrupcy, and I will be able to leave this mess behind? Also (sorry, more q's!), how much of my income then goes towards bankrupcy payments for 3 years? Will I be allowed to rent a flat, pay my bills, eat, etc? Or will I have to stay with my parents for 3 years and give up almost all my earnings? Thanks so much for your help with this! |
| debtinfo |
Posted - 13 September 2009 : 17:58:52
If you are not living there at the date of the bankruptcy (or spouse or former spouse)then it will not be classed as a family home and so the OR/Trustee will have an unlimited amount of time to deal with it. If it is negative equity and you do want to live there then you can buy it back of the OR for £1 plus legal costs. If you do this you will need to keep paying the mortgage and any other debt secured on it. If you do not want to stay at the property and let it get repossessed then the secured debts can recover their money by selling the property. Any amount left after this will then fall into the bankruptcy even if it takes months or years to sell. One thing to look out for if doing this is not to sign anything which puts returns the liability to you (some sneaky mortgage companies try to get you to do this when the voluntarily repossess.) |
| MatthewJames |
Posted - 13 September 2009 : 17:50:19
Yes and No! I am currently registered as living there. However moved back in with my parents cos there was a fire at the block of flats. Now can't afford to go back to flat. My morgage is £550 per month, a loan secured on the property is £200, council tax is £83, ground rent £70,Electricity £40 and I earn £1,100 after tax. No room for manoevre, so in a terrible mess! |
| debtinfo |
Posted - 13 September 2009 : 16:03:11
Hi, are you living at the flat |
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