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loobylou
Starting Member
United Kingdom
13 Posts |
 Posted - 26 August 2010 : 16:50:45
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Hi,
Grateful for some advice please? Hubby and I made BR 20/08/10 and all fine with that, OR telephone interview 31/08, hopefully all will go ok.
We have a mortgage on our house with neg eq of approx £40k, and so we are looking to the future and how best to proceed. we also have a loan with Firstplus secured on the property for approx £25k. If we 'throw the keys in' now how much of the shortfall will be included in the BR - if any? We are just about managing to keep up to date with the mortgage payments at the moment but its a struggle.
Many thanks in advance!!
Loobylou |
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 26 August 2010 : 17:25:19
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| If you give up the property then all of the shortfall for the mortgage and loan will be included in the BR. |
Edited by - gettingoutofdebt on 26 August 2010 17:25:52 |
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loobylou
Starting Member
United Kingdom
13 Posts |
Posted - 26 August 2010 : 17:45:58
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Thanks gettingoutofdebt - this gives us some options then. Just another thing... How will the OR view us stopping our mortgage payments? We would like to try to save over the next couple of months enough to put a good deposit down on rented accommodation, maybe even to pay 6 months in advance....?
Thank you. |
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Worried Woman
New Member
United Kingdom
60 Posts |
Posted - 26 August 2010 : 18:18:11
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If you are including that debt into the bankruptcy then the OR will tell you not to make any further payments to any of your creditors from the day of you BR. Obviously if you are going to try to retain the property then you will need to keep paying it but otherwise stop.
Hope this helps.
Went Br 20th July 2010..countdown for 1 year. |
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 26 August 2010 : 19:15:22
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Stopping paying your debts a few months before declaring BR is perfectly normal as people need to be able to save up the cost of BR. If you are not intending to keep the property then there really isn't any point in continuing with the mortgage repayments.
Generally it takes creditors 3 months of missed payments before they really start getting serious. They will call you umpteen times a day after 1 or 2 missed payments but after the 3rd missed payment then they will start handing the debt off to a Debt Collection Agency unless it is a mortgage in which case they normally keep the debt. |
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loobylou
Starting Member
United Kingdom
13 Posts |
Posted - 26 August 2010 : 21:11:49
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Thanks all, thats been really helpful.... Don't know what we'd have done without this forum...even though we just lurked mostly!! Just got OR interview on Tues to get through now, fingers crossed all will go smoothly, then just IPA to stress about....!
Thanks again |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 26 August 2010 : 22:17:03
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Good luck for the interview, it won't be as bad as you expect x
View my blog at http://skippy13.blogs.iva.co.uk/
Only when the last tree has died, the last river has been poisoned and the last fish has been caught will we realise that we cannot eat money.
Last IPA payment made on 28th June 2010 - it's over at last! |
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Julie
Starting Member
42 Posts |
Posted - 28 August 2010 : 07:09:28
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Good luck from me too  xx |
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Topic |
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If we 'throw the keys in' ?
