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Porcorosso
Junior Member
United Kingdom
235 Posts |
 Posted - 16 June 2008 : 14:07:30
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Well i've spoken to several people and it seems BR is the only way forward for me. My biggest concern is that my young son (aged 7) doesn't see any of this. Accordingly I'm aiming to go BR the first or second week of August when he is on holiday with his mother. My court currently has a lead time of approx 14 days for an appoinment.
I am already just under two months behind with my mortgage. I have not paid my credit cards for approx three months now. I reckon i can collect up the £495 needed in time.
My biggest concern regards getting out of my house. Given the decline in value there is no likelihood of equity in the property. I am unable to maintain the level of payments required to keep it anyway. I know i will be handing it back. My problem is timing vacating the property with everything else. Do i need to be out of the property on the day i go BR? or will i have some time to quit the place?
I've read several mentions regarding sercured and unsercured debts. Can anyone shed light on the importance of this because I get the feeling I need to know!
I am feeling desperately scared and upset that things have come to this but i cannot see any other way out.
The ostrich has taken his head out of the sand. |
Edited by - Porcorosso on 16 June 2008 14:16:54 |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 16 June 2008 : 14:21:45
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Hi Porcorosso,
I would sugegst vacating the property prior to going BR. As most letting agents will do a full credit check, getting a new let whilst BR can be quite tricky. In addition, when completing your SOA, ensure you put your mortgage company down in both the secured and unsecured section to ensure any shortfall following the sale whill be written off.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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Porcorosso
Junior Member
United Kingdom
235 Posts |
Posted - 16 June 2008 : 14:37:33
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Thanks Julian, thats very helpful. I suspected as much regarding the rental of a flat. I also thought it might be handy for moving.
The ostrich has taken his head out of the sand. |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
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hammy0107
Junior Member
399 Posts |
Posted - 16 June 2008 : 17:41:13
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Julian,
Sorry to hijack the thread but should i be putting my mortgage in unsecured debt also. Right now i have between £5k and £13k equity but my hope is that the OR will allow my wife to buy the BI for a reduced figure taking the housing market into account. If i should put it under unsecured also what value should i put and what reason for debt should i put? |
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hammy0107
Junior Member
399 Posts |
Posted - 16 June 2008 : 22:07:14
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| Sorry guys just putting thread back up the list again. |
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melanie_giles
Senior Member
1191 Posts |
Posted - 16 June 2008 : 22:43:07
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There would be nothing stopping you continuing to live in the property whilst the mortgage company commenced possession proceedings. From their perspective, they would rather the property be occupied than left vacant, and you would have somewhere to live whilst saving up the money for a rental deposit. There are plenty of landlords who will take on undischarged bankrupts as tenants - you only have to look around to see how much vacant buy to let property there is around to see that beggars cannot be choosers - but do expect to pay upwards of a three month deposit.
To Hammy - if you have equity, then you have no unsecured debt relating to your mortgage.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 17 June 2008 : 10:25:02
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Hi Hammy,
Do you intend on staying in the property?
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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hammy0107
Junior Member
399 Posts |
Posted - 17 June 2008 : 11:24:28
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Julian,
Most definetely plan on staying in the property. The scenario i am hoping for is that either the OR accepts a vastly reduced offer from my wife to buy the BI, or property prices drop significantly so that i have no equity in 3 years time and we buy the BI for a pound.
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 17 June 2008 : 11:45:23
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Hi Hammy,
There is no need to list it in the unsecured section.The OR is likely to arrange a drive-by valuation, and given the current state of the property market, it is reasonable to assume that the value has in fact fallen. Should your wife buy the BI now, then the property is dealt with and won't be re-visited by the OR at a later date.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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hammy0107
Junior Member
399 Posts |
Posted - 17 June 2008 : 11:53:37
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Julian,
I have had a valuation done about 3 weeks ago. Should i give this info to the OR or should i wait until they do a drive by valuation and then present my valuation if needed to dispute? What i am thinking is that the drive by valuation could in fact come in less than the valuation i have had and therefore cost my wife less to buy the BI. My concern with this however is that in explaining away spent monies i would be stating that i have paid for a valuation, would the OR then ask for a copy of this valuation and use this if their valuation came in lower? Also do i get the chance to negotiate with the OR? i.e with property prices falling all the time wouldn't you be better off with a couple of grand now than potentially nothing in 3 years time? |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 17 June 2008 : 11:57:42
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Hi Hammy,
If the valuation you had done 3 weeks ago was by a chartered surveyor, then I would suggest that should suffice. However, if you think the drive-by valuation will come in lower, then you have to decide whether to take the risk. It's purely a judgement call!
Bear in mind that if you factor in redemption fees and sale costs, most (if not all) of the equity can be "explained" away. Again, the OR is usually open to negotiation, so you have nothing to lose by discussing it with them.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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hammy0107
Junior Member
399 Posts |
Posted - 17 June 2008 : 12:10:49
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Julian,
I was happy with the valuation (it was a chartered surveyor) as after early redemption charges it left approx £5200 equity. This £5200 is before sale costs etc and without taking into account and BI we can show my wife as being entitled to (this will be difficult i expect). However a couple of people on here including either Melanie or yourself has advised me that the OR will not take into account early redemption fees or sale costs. If this is the case i am left with £13k equity which my wife would not be able to find. We really do not want to lose our house so this is a really touchy subject and could even result in the breakdown of my marriage if it goes the wrong way. |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 17 June 2008 : 12:40:58
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hi Hammy,
The best thing would be to get a redemption figure from your mortgage lender and claim that as the balance outstanding on the mortgage. With this, it is then likely the OR may take a "nuicance" payment of a couple of grand to deal with the property.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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hammy0107
Junior Member
399 Posts |
Posted - 17 June 2008 : 15:10:12
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Julian,
I have a redemption figure from Halifax, however it breaks it down into Outstanding, Early Redemption, Admin charge. The end figure shows £142800 to settle now but the outstanding figure is £135500, i am concerned that the OR will use the £135500 against the valuation of £148000 and deem there to be £12500 equity. |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 17 June 2008 : 15:44:49
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Hi Hammy,
I would put the higher figure on your SOA, and keep hold of the paperwork in case the OR asks for it.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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Topic |
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Planning My BR Countdown
