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max
Starting Member
13 Posts |
 Posted - 17 September 2010 : 15:48:31
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My husband and I are considering bankruptcy. I won't bore you with the whole story but we're in the credit card trap and can't get out. It's with a heavy heart that we have to admit we can't pay our debts for much longer.
We have a mortgage for £177k and the house is worth £175k (according to recent sales in the area) so I understand the OR won't make us sell the house. But I don't understand the bit about a relative buying it back from the OR for £1 plus costs!
Our son would be in a position to pay that - but does the mortgage company have to approve it? Does that mean our son would then have a mortgage? Would the house be in his name but the mortgage in ours?
Just another question while I'm here........... when we file for bankruptcy, can the mortgage company force us to sell if they think we can't pay our way?
I've done lots of research but this BI business is something I just can't understand fully, so any simple explanation would be well received. Thanks. |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 17 September 2010 : 23:07:30
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Hi
If the mortgage is in joint names then it is very unusual for the mortgage company to be remotely interested in the process.
I would strongly suggest that you purchase your own Beneficial Interest back rather than your son doing so. If he gets involved it is likely to cost more and there may be stamp duty costs etc and the mortgage company would need to be made aware.
Costs : JOINTLY OWNED - if it is in negative equity then the costs are £1 each for the beneficial interest and solicitor costs are £211 payable to TLT the OR's solicitors.
YOU DO NOT NEED A SOLICITOR TO ACT FOR YOU AS TLT DO 99.5% of the work.
If the property is in a sole name the Bi costs £1 plus £500 for legals. This is a much more complex process and it is usual to have a solicitor to do this at around £500& VAT but there are experts who complete this process for less than half of the cost.
The mortgage company will not force you to sell unless you are in serious arrears and have gone through the posession and reposession process. If they sold it now they would probably lose £20k
Good luck
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
08454 751 851
Real People ..... Real Debt Solutions |
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Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 17 September 2010 : 23:39:46
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Max
I cannot add anything to what Paul has said. Good solid advice and you certainly do not need a solicitor it is a signature on a Deed of Variation that is two pages long
Good luck and come back if you need anything else
Richard
"There are no problems - only solutions" |
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max
Starting Member
13 Posts |
Posted - 18 September 2010 : 15:17:27
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Thanks for the info, it's a bit clearer now.
The only other thing that I've read about is that if the bankruptcy lasts for a year, the OR can order the sale of the house up to 3 years later. Please can you advise if I've got the wrong end of the stick or if there is some truth in this.
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Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 18 September 2010 : 23:02:05
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Max,
Will be happy to assist again - do not hesitate to come back to the forum as there is always someone here to assist and I would say that to share experiences is often useful
Good luck, Richard
quote:
Originally posted by max
Thanks for the info, it's a bit clearer now.
The only other thing that I've read about is that if the bankruptcy lasts for a year, the OR can order the sale of the house up to 3 years later. Please can you advise if I've got the wrong end of the stick or if there is some truth in this.
"There are no problems - only solutions" |
Edited by - Housing on 18 September 2010 23:03:06 |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 20 September 2010 : 11:34:24
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Hi max
picking up on your comment the OR can insist on the sale of the property, yes if you have positive equity within the property they have three years to instruct you to sell or move out.
however this is not relevant with negative equity property once you have purchased the BI they cannot insist upon a sale.
Max if you are anything like myself you will have a thousand and one questions about Bankruptcy, can i suggest contacting one of the experts and trying to meet up with them, so that you and your husband can get the facts not the myths.
we had countless high volume discussions about myths and misconceptions.
regards Richard |
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max
Starting Member
13 Posts |
Posted - 21 September 2010 : 08:50:41
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Thanks, I think that's good advice about meeting an expert.
Is there one on the forum in the Winchester area? If not, how can I choose one from all the hundreds that come up on an internet search?
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 21 September 2010 : 11:34:20
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Hi Max
I am less than 30 miles from you and found that the team at Reviva came to visit me at my home address, they were extremely helpful. Paul has already posted on your thread so may have a bit more background knowledge
try not to get too much advice from seperate sources, it gets confusing,
look to the column to the left and pick an expert to discuss yor situation with. The first consltation is normally free, then you can decide if their range of solutions fits your problem.
regards Richard |
Edited by - Richard P on 21 September 2010 11:38:09 |
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max
Starting Member
13 Posts |
Posted - 21 September 2010 : 15:49:19
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| Thanks Richard, I'll get in touch with Reviva when I've got all my paperwork organised. |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 21 September 2010 : 15:55:40
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dont worry too much about paperwork yet, it is more about putting your mind at rest and getting the answers you need to plan the next few months.
do you both need to go BR ?
Richard |
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max
Starting Member
13 Posts |
Posted - 21 September 2010 : 21:26:18
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| Yes we both need to go BR! I'm self employed and there's not much work about at the moment. My husband is working for an agency so his wages aren't consistent. That's why we can't go for an IVA - there just isn't enough disposable interest. We can pay all our cards their next payment but then need to take action! |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 22 September 2010 : 17:37:15
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speak to an expert before you make the payment
Richard |
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max
Starting Member
13 Posts |
Posted - 22 September 2010 : 20:15:28
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| Thanks, we will do that. |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 22 September 2010 : 20:51:37
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I woulf recommend speaking to one of the experts who post on here. Their contact details are at the side of the page, and any of them can help you, and initial advice should be free.
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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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 22 September 2010 : 21:37:37
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I agree with Tracey that you should take free and impartial advice.
You can do BR yourselves without involving a third party and this will cost you no more than the normal fees.
The forum is always here for advice and support.
Buckle your seat belt Dorothy, 'cos Kansas is going bye bye.
Jan
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Topic |
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Benificial Interest - confused
