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James.9
Starting Member
1 Posts |
 Posted - 25 January 2011 : 19:17:44
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| i have a number of properties but a very large amount of debt increasing everyweek, so even though my income shows i have a positive income in real terms every month this gets worse. will i be able to declare bankruptcy or can it be declined? |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 25 January 2011 : 19:36:23
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Hi James
in at nut shell yes if you are insolvent ie you have more going out than coming in. you are Not in an IVA and live predominantly in the area that you are petitioning to go BR.
I also had a portfolio and i started to do the work myself and it got very complicated and messy, i then used the services of Paul Johns and his team at Reviva. (one of the experts to the left)
alas all of my tenancies did not conclude at the same time, i actually delayed going BR to protect and help some of my tenants.
I had phenominal problems with Northern Rock not accepting ownership and then the council chasing me for council tax.
good luck Richard |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 25 January 2011 : 20:05:28
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Hi James and welcome.
I would suggest that you do speak to one or two experts to find out your options.
Details for all of them can be found via the link on the left.
Buckle your seat belt Dorothy, 'cos Kansas is going bye bye.
Jan
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 26 January 2011 : 22:27:44
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Hi
Lots to consider and if you have a number of properties you do need careful planning to minimise any fall out for you and your tenants.
Over the last year I have seen more and more clients with multiple btl properties and it is not unusual to see people with 50 plus properties.
The challenge the BTL property investors face includes:-
1. negative equity ( x lots of houses )
2. The inability to remortgage because of the small equity
3. Limits on the number of BTl mortgages
4. Changes if interest rates etc
really would recommend you take professional advice and get a plan together to move forward
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
08454 751 851
Real People ..... Real Debt Solutions |
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Bigal4787
forum expert
United Kingdom
641 Posts |
Posted - 28 January 2011 : 00:09:28
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Hi James,
As Paul says BTL landlords have many challenges, but one in bankruptcy, is that if you have tenants in them, and the lenders haven't appointed an LPA receiver, then the OR will more than likely appoint an agent to take the management of the tenancies over, with any rent going into the bankruptcy estate(i.e the mortgages won't get paid).
The reason for this, is that any solely owned BTL properties will not revest in you after 3 years, so by taking the rent the OR is trying to force the lenders hand into dealing with the property. However of the cases I had, several properties were being managed by the OR for over a year, before the lenders realised what had happened and began repossession proceedings.
Big Al
Insolvency examiner with the Insolvency service from April 2008 - July 2010.
If you need help completing SOA's(statement of affairs) or PIQ's(preliminary information questionnaire) if you've been declared bankrupt, or anything else and you're within 30 miles or so of Warrington, then please contact me via my contact details in the expert page for futher details"
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I have properties but an increasingly large debt
