After being in a trading IVA for nearly a year the reality is that my business must close. I am now looking a bankruptcy as an option . Now Ive read lots of posts here and on other sites and wanted to clarify negative equity as my buiness loan is ecured my mortgage is £266k against a house value of £330k and on top of this there is a business loan with security of £150k against my home and my late mothers property which is now worth £85k. Does this mean I have negative equity on my home and that the OR is more likely to ask if we want to buy the BI..?
Second question is on a commercial lease in bankruptcy. If I file can the landlord still take back the property for non payment of rent..?
Can you afford the mortgage and secured loan payments, as that may be the biggest problem in keeping the house. The lease will either be sold or surrendered by the trustee
The mortgage is affordable and the bank have security over my mothers home as I previousy posted so we will have to negotiate payments with them. But my understanding is that although they have security they can not call in the secured loan on my home without the agreement of my mortgage lender who is unlikely to want do that!
IF I default on my rent on the commercial lease the landloard will take back the premises, but I will still owe the bank the £150k. I am guessing they will want to take the security on my mothers and renegotiate payments on the balance with me then (I'm guessing this is how it works...?)
If however I keep the rental going and sell the lease on before I declare bankruptcy and I will probably lose my home as the value of secured loans will have dropped and leave me with equity with the house - where at the moment there I am in a negative equity sitation.
most secured loans do have the right to repossess the property whether the first chargeholder wants them to or not.
Are you renting out the other property, if so the trustee may take the rental income
Finally, the OR may not allow the the mortgage and secured loan payments combined if they are significantly above what a market rent would be in your area
Ok say your loan and secured payments totaled 1500pm but the average rent in your area for the type of property you needed was only 800pm then the trustee may only allow you 800pm in your soa
After being in a trading IVA for nearly a year
Posted - 23 July 2011 : 22:11:39
