| Author |
 Topic  |
|
|
andrew.h
Junior Member
202 Posts |
 Posted - 07 June 2008 : 18:51:41
|
| I have just declared myself BR, and my only asset is my house. I knew when i declared myself BR that the OR would take over the interest in the property. I have been offered a house to rent by close family, how do i stand with the OR on this issue. Can i hand back the keys of my house to the mortgage company without penalty from the OR? Do i take the rented house and leave my house empty, not paying the mortgage and having it repossessed? |
|
|
tess121068
Junior Member
211 Posts |
Posted - 07 June 2008 : 20:26:52
|
Hi
I am not an expert but a friend of mine went bankrupt in Nov 07, he gave his keys to the OR and moved into rented. The OR then took control.
Hope this helps.
Tess |
 |
|
|
JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 07 June 2008 : 20:28:28
|
Hi Andrew,
Don't assume you'll automatically lose the house. Are there any mortgage arrears? Is it in joint names? What is the value and how much is secured on it?
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
|
|
|
andrew.h
Junior Member
202 Posts |
Posted - 07 June 2008 : 20:59:23
|
There's approx 3 months mortgage arrears, house is in my name only. House is worth £100k approx, with mortgage and secured loans totalling £87k.
My thinking is that if i don't move quick i could lose the rented house to someone else, and being a BR means my options are limited. |
|
|
|
Topcat001
Junior Member
United Kingdom
180 Posts |
Posted - 07 June 2008 : 22:10:09
|
| My advice would be take the rented house, Im no expert but a roof over your head comes first. Good Luck |
|
|
|
andrew.h
Junior Member
202 Posts |
Posted - 08 June 2008 : 09:49:48
|
| That was my train of thought, just want to be sure there are no rules or legal obstructions before committing myself |
|
|
|
JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 08 June 2008 : 12:13:51
|
Hi Andrew,
Did you list the mortgage companies in the unsecured part of the SOA as well as the secured? Check with the OR as in a repossession situation, if the property does not sell on the open market, it will go to auction. In an auction, you will typically only realise about 75% of the market value (known as the Red Book Value). Any shortfall will become a new unsecured debt, so check with the OR that they are happy to write this off in your BR as well.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
|
|
|
andrew.h
Junior Member
202 Posts |
Posted - 08 June 2008 : 19:21:13
|
| I did not list the mortgage company or any of my secured debts on the unsecured list. Nobody has brought this up before. This could leave me in a very tricky situation of a possible debt of £25k. Probably have to apply for BR again if that is the case. |
|
|
|
JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 09 June 2008 : 10:11:37
|
Hi Andrew,
Whilst this is always a possibility, it is unlikely. I would suggest contacting the OR and discusiing your situation.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
|
|
| |
Topic |
|
House
