Hi everyone,Janey here again, one month in on my BR and all going well. Still got savage nervous excema on my hands but am sleeping better for sure. I am writing this on behalf of a friend I am trying to help. She has a cafe with living accomodation above and a commercial mortgage. Her business has been making a loss for the last 3 years and she is several months behind in gas, electric, water and council tax and 4 months behind in her mortgage. She is a quivering mess of nerves and bursts into tears at every given moment. She has a 17 yr old son who earns a minimum wage. I attended a meeting with her today with an advisor from her mortgage lender and for some strange reason a local MP (very nice man but not sure why he was there) Her income from the cafe barely covers food never mind bills. The property is up for sale. Her Mortgage Co. were not particularly sympathetic (no surprise there then and although have agreed they may allow her some leeway whist she attempts to sell they are going to go ahead with a repossession order ( their reason was that it takes a while to get that arranged) I truly think her best bet would be to declare herself bankrupt but I do need to be clear on a few points. The property has been valued at around £160,000 and the outstanding mortgage £111,000. The M.Co.have admitted she would get a better price to get rid of it herself as they are only interested in getting their money back however as I said before they are not interested in waiting. If she went bankrupt and the OR sold the property would she get any money back after it was sold and all her debts were paid off? Also would her and her son be allowed to stay there whilst it was up for sale. Gratefull for any advice. regards to all
in theory she could get somemoney back but in reality, the property will probably sell for less and after fees debts and the costs of the bankruptcy she may get nothing.
The trustee would normally let her stay there whule they put it up for sale but if it does not sell after a while she may find that th mortgage company get in their with the repossession, All in all though she is likely to have at least 6 months to find somewhere new to live.
ps its funny isnt it that once you have done bankruptcy yourself, you tend to find out about other peoples money problems and they ask you for advice
Thanks for your prompt reply. I have arranged to go with her to CAB to talk with them too. It is funny as you say but I think it comes from feeling so dreadfully alone with your own seemingly insurmountable problems and then discover forums like this and helpfull friendly advice and it's an amazing feeling that you are not alone at all. I so want to help her feel like that but obviously am wary as I don't want to give her any wrong advice.
Hi everyone,Janey here again, one month in on my BR and all going well
Posted - 16 November 2011 : 19:10:59
