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Lisa.89
Starting Member
3 Posts |
 Posted - 06 April 2012 : 07:38:50
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| Hi, not really sure where to start.. Basically i have 2 properties, both in negative equity, one has a secured loan against it. We have an IVA which we are maintaining but I know this will probably fail if we give up the properties. Both are interest only, one has tenant in but no rent received for few months so arrears. It just feels like its all mounting up and gettig out of hand. Both my husband and I work full time with a young child and it seems we are working all the hours and getting nowhere fast. We live in the property with the secured loan against it. I am seriously thinking about handing keys back to both properties and renting, I feel tht I also need to reduce my working hours, due to stress of all this.. I just need to know if mortgage shortfalls could be included in bankruptcy and would it be best for us to look for a rental now? So worried about this and don't know where to turn. |
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debtinfo
forum expert
2826 Posts |
Posted - 06 April 2012 : 10:09:22
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| yes, the shortfalls would be included in any bankruptcy even if they did not sell until after the bankruptcy order date, do speak to your IP as they can give you advice, but if you do decide to go for bankruptcy and you do give up the properties it is often advisable to get into rented property as soon as practical |
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Viki.W
forum expert
United Kingdom
2211 Posts |
Posted - 06 April 2012 : 18:14:04
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Hi Lisa,
As debinfo has said, it's best to get yourselves into rented first before bankruptcy is on your credit file, but as you are in an IVA, you may struggle a little with the rental agencies, so may be asked for a bigger deposit or a guarantor. Some private landlords may not credit check though.
Once you've decided on repossession and bankruptcy, you should stop paying your mortgage and secured loan and your IVA payment will stop, so you can save up for your deposit/bond.
Speak to your IP as they can explain everything to you and start the process of failing the IVA if that is the best option.
Viki Warbrooke
Vincent Bond & Co
If you would like free advice on all options available and help with your bankruptcy petition please contact me at http://www.vincentbond.com/about_us_Viki_Warbrooke.asp |
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Lisa.89
Starting Member
3 Posts |
Posted - 07 April 2012 : 10:22:40
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Hi, thank you all for the advice. The IVA company have said that I shouldn't be thinking this far ahead, they said that I will find out the shortfall once valuations etc have been done on the 2nd property (with tenant in). They have said that if we hand keys back for this property (once tenant leaves), we could ask for shortfall to go in to IVA but have told me that it is highly unlikely that this will be agreed as shortfall is very likely to be £40k plus. They said we can then consider debt managment plan but we are not too keen on that idea as I think it will take forever to clear it, which will mean never being able to extend our family.
I would like some advice on what to do... I would like to reduce my working hours to be able to deal with all this, as I said the stress is too much right now. Would you recommend waiting to do this or doing this now and then going down route of looking for rental and handing keys back. As my husband works FT and I would still be bringing home an income, would we be likely to have to pay into Bankruptcy for up to 3 years?? Would this mean losing our cars (both only work £1k each). My husband thinks we should hand keys back to one at a time, would you advise this?
I feel like there are a million questions to ask.. My IVA co. can only tell me to try to get it in IVA but have said that its highly unlikely.... I don't want to drag out what is going to eventually happen.
This is situation..
Shortfall - £40-£50k approx on tenanted property
Shortfall - £20k approx plus £7k secured loan on our property
IVA is for around £20k
(god that sounds so scarey.
Income: Husband - £26k / me £20k (possibly reduce to half if hours go down).
Would really appreciate any advice you can give.
Thank you so much.
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Viki.W
forum expert
United Kingdom
2211 Posts |
Posted - 07 April 2012 : 11:44:46
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Nobody can really tell you what to do and your IP should be a bit more helpful, but if you want to cut your hours, go for repossession and go into rented, then I would do it sooner rather than later.
You don't want to pay into the IVA if it's going to fail anyway, and it takes several months to fail the IVA anyway, so may as well start that now.
If your cars are only worth 1000 each and you need them for work, then they will be safe.
If you have surplus income after all your essential outgoings, then you will have to pay an IPA for 3 years.
Speak to an expert on here to chat it all through.
Viki Warbrooke
Vincent Bond & Co
If you would like free advice on all options available and help with your bankruptcy petition please contact me at http://www.vincentbond.com/about_us_Viki_Warbrooke.asp |
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Can mortgage shortfalls be included in bankruptcy ?
