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s10
Junior Member
226 Posts |
 Posted - 03 June 2008 : 10:12:38
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| when you declare BR what happens to the mortgage payments are they carried on? do you still keep the house and pay the mortgage but are just bankrupt on your debts? Any advice would be gratefully recieved |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 03 June 2008 : 11:35:53
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Hi s10 and welcome to the forum.
Secured borrowing is excluded from bankruptcy, so you should continue to pay your mortgage as usual. with regard what will happen to your house, if you could answer the following ...
1. Is it in joint names or your sole name?
2. What is the current valuation?
3. How much is the mortgage and any other secured loans/charging orders?
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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s10
Junior Member
226 Posts |
Posted - 03 June 2008 : 14:54:24
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Hi Julian
Thankyou for your time in replying to my post.
The house is in my name only, I have for the last year been on interest only payments(in order to afford the mortgage)the current value is approx £170000 the outstanding mortgage is £159995 this includes a further advance taken on the property over a year ago.No other secured debts are on the house.
I appreciate your time and I am releived I can get some questions answered as this is all very confusing and stressfull
Kind Regards
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 03 June 2008 : 17:14:58
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Hi S10,
If you factor in redemption fees (typically circa 6%), there is very little equity left in your property. The OR does need to realise your beneficial interst for the benefit of the creditors. In your case, it will be one of two ways...
1. The OR can place a charge on the property and hold it for a maximum of 3 years. Within the three year period, they can get you to release the equity (this assumes the property will go up in value, which seems unlikely given the current economic situation).
2. The OR can sell your beneficial interest to a third party (who you can nominate).
In any event, keep paying your mortgage!!!
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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s10
Junior Member
226 Posts |
Posted - 03 June 2008 : 20:04:59
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Many Thanks Julian.
Will most likley have some more questions in the coming weeks, but good to know this forum is so informative.
Kind Regards |
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m and v
Average Member
United Kingdom
760 Posts |
Posted - 04 June 2008 : 07:50:26
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Hi s10
I asked loads of questions in the run up to my BR. They normally pop into your head just as you want to go asleep!!
It's nice to know there are other people out there who have been through it too - I found this forum so supportive.
Take care
Vicki x |
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Helpful Advice
Average Member
United Kingdom
646 Posts |
Posted - 04 June 2008 : 10:11:16
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Hi S10,
You have mentioned the house is in your sole name do you live in the property alone?
Julian mentions redemption payment or early repayment penalties this would depend on how long you have lived in the property and if there is still any outstanding to your mortgage company.
The trustee’s in Bankruptcy tend recently not to include these penalties in their calculation for the Bankrupts interest in a property, however property is coming down in price in the current market so an up to date valuation would let you know where you stand.
Kind Regards,
Brett England
Bankruptcy Specialist
England,Jackman & Spacey
WebSite www.ejands.co.uk
View my personal story & blogs at:
http://brettengland.blogs.bankruptcyhelp.org.uk/ |
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s10
Junior Member
226 Posts |
Posted - 04 June 2008 : 21:17:14
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Hi Brett
With reference to the house, yes I live there alone. The valuation is only about 2months old which should be pretty accurate in todays market, however the redemption fiqure is just a tadd under four thousand pounds, and this is valid to september 2010. Which as you might agree is pretty steep.
And Vicki thannks for your supportive post. Most encouraging
Kind Regards
s10 |
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Helpful Advice
Average Member
United Kingdom
646 Posts |
Posted - 04 June 2008 : 22:25:45
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Hi s10,
From the figures you have supplied then your beneficial interest in the property will be valued around the £10k mark.
The trustee will need to sell your BI for the benefit of the creditors so you will need to look at the possibility of raising this sum or having a third party to purchase your BI.
Kind Regards,
Brett England
Bankruptcy Specialist
England,Jackman & Spacey
WebSite www.ejands.co.uk
View my personal story & blogs at:
http://brettengland.blogs.bankruptcyhelp.org.uk/ |
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s10
Junior Member
226 Posts |
Posted - 05 June 2008 : 16:36:52
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Many thanks for your time Brett.
Kind Regards
S10 |
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Topic |
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what happens to the mortgage payments in BR?
