My husband and I went BR 3 weeks ago and I am still waiting to hear from the OR. Think I will have some kind of a breakdown if it goes on for much longer. Our property was valued by an Estate Agent in January at £190k and he estimated that realistically I would get £185k for it. Mortgage is £190k with penalties of an extra £9k. There are no arrears and we are hoping to keep it. What do you think is likely to happen? Can we buy back the BI after we are discharged? If someone else buys the BI are there legal fees to pay? We have young children, are both working and can afford to pay the mortgage payment with some money left over for the BR. I think losing my home would just about finish me off!?? Help please.
if there is zero or negative equity then provided that you can get someone else ( family member or friend ) to purchase the beneficial interest from the OR then it is safe.
You need to do this when given the opportunity and when you speak to the OR you need to tell him / her that you have a friend that would like to buy the BI.
If there is no equity then this will be for £211 for legals PLUS £1 for the notional equity value.
This may take 3 - 4 months to resolve so not to worry it is just a process to go through .
One thing you need to remember is that if you don't have someone purchase the BI then this will remain with the OR and will not automatically revert back to you after the Br.
Paul Johns Assisted Bankruptcy Specialists Reviva UK www.revivauk.com
Hi Paul, your reply has raised a few more questions -sorry - when we are discharged do we have to pay again to have it transferred back to us? How will the mortgage company feel about it and is there any liability on the person who buys the BI? Thanks
unfortunately there is a future cost to transfer it back to yourselves after discharge,
The mortgage company are fine as it is not the mortgage that is being transfered but the "ownership of equity".
There is no liability on the person who buys the BI as it is not the loan liability but the potential equity that they are buying - even if it is £0 or minus.
Some people really struggle to find people / friends / family because they haven't told them and it is embarrasing etc.
We have on occasion purchased the BI with the understanding that it is purchased back within X months / years after discharge. Sometimes helps people keep it more private.
Paul Johns Assisted Bankruptcy Specialists Reviva UK www.revivauk.com
BI Interest
Posted - 11 June 2008 : 23:45:14
