Hi, after reading through many posts regarding homes and equity and beneficial interest I AM STILL PUZZLED WHERE TO GO NEXT.
My partner and I entered into an IVA in Jan 2009 - but after he ws made redundant and I had to change jobs we faced issues meeting the original payments. The IVA company were fine about reducing the amount - however advised that any further reduction would lead to our IVA being extended.
Recently i found out i am pregnant again and therefore as a result we are going to have to change payments again for childcare etc, so we are looking to leave/fail our IVA and go bankrupt, rather than have the IVA extended.
We do have equity in our home - around £9,000 and it is thea equity we are uncertain about. If we could somehow stick out eh IVA we would be required to re-mortgage and release some/most of the equity - so loosing the £9000 seems worth it for the quality of life we will hopfully regain following bancrupcy :)
If after bancruptcy it is decided we do in fact have £9000 equity - what happens then? I read we get 12 months to sell and move - but do we have to take this? It would appear we would be better off walking away and renting somewhere similar straight away rather than waiting 12 months?
Would we be able to stop paying mortgage immediately and hand it over to someone? not sure how it works? Guess people usually want the 12 months.
Your help would be appreciated - if you need any further info - please just ask.
The OR 'normally' won't pursue with the sale of a property unless the equity is £10k or more due to the costs involved. Did you get a 'quick sale' valuation of the property? Normally this will reduce the value by several thousand and this is the valuation the OR will use.
I would say the first step would be to get a couple of valuations to see whether there is any equity in the property and exactly how much it is. You can tell the Estate Agents that you are relocating to take up a new job so need a quick sale price.
Once you have confirmed whether there is any equity in the property you can then decide whether to try to stick out the IVA or whether it would be better to declare BR.
Edited by - gettingoutofdebt on 13 September 2010 16:59:29
puzzled about equity and beneficial interest
Posted - 13 September 2010 : 15:33:20
