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potless
Starting Member
46 Posts |
 Posted - 02 May 2012 : 09:17:48
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I'm look for advice for a good friend who is having to go BR. I'm ex BR myself and I have told him how beneficial this site was for me. Any advice would be greatly appreciated.
He has hit difficulty due to a rather messy divorce and also a change in job. He has custody of his two children and lives in a mortgaged house, the house has an outstanding mortgage of £365k with a value of approximately £375. He is currently in an IVA, which was arranged a year ago but he is now struggling to pay this too. Basically with his current employment he can just about manage to pay his mortgage and usual outgoings but cannot afford the IVA payment which £385 per month. His ex wife is not on the mortgage but does have a charge which will gives her half of any equity from the sale of the property (which is very little). If he were to go BR do you think he would be allowed to keep the property and also could you advise on who could buy the benficial interest.
ALL advice and experiences would be of use. Many thanks |
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Viki.W
forum expert
United Kingdom
2211 Posts |
Posted - 02 May 2012 : 09:55:59
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Hi,
Has your friend's circumstances changed since his IVA started?
If they haven't, then he may need to pay an income payment agreement in bankruptcy for 3 years, which could be similar to what he's paying now.
How much is he paying for his mortgage per month?
I suggest he speaks to his IP asap, as he may need to just redo his income and expenditure and have his payments reduced.
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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potless
Starting Member
46 Posts |
Posted - 02 May 2012 : 09:57:28
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quote:
Originally posted by Viki.W
Hi,
Has your friend's circumstances changed since his IVA started?
If they haven't, then he may need to pay an income payment agreement in bankruptcy for 3 years, which could be similar to what he's paying now.
How much is he paying for his mortgage per month?
I suggest he speaks to his IP asap, as he may need to just redo his income and expenditure and have his payments reduced.
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
Hi Vicki
Thanks for your speedy response. He has taken quite a dramatic drop in income and is struggling to pay mortgage and utitlities etc.. He will not be able to pay anything towards the IVA, which is why he wants to look at BR. The mortgage is £1200 per month but his outgoings are approximately £3300 with an income of £2631 per month. If he could lose the IVA and cut back on outgoings then he would hope to try and keep the family home? Would this be possible?
Thanks in advance |
Edited by - potless on 02 May 2012 10:02:22 |
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Viki.W
forum expert
United Kingdom
2211 Posts |
Posted - 02 May 2012 : 10:29:15
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Has he notified his IP of the changes?
Can he rent for cheaper in the area?
I suggest he speaks to his IP for bankruptcy advice, and also I advise he gets an up to date valuation on the property to see how much equity is in it.
If there is no equity, then the OR will value the home again in 2 years and 3 months.
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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potless
Starting Member
46 Posts |
Posted - 02 May 2012 : 10:32:56
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Hi Vicki
I dont think he has spoken to his IP as yet. I will tell him to call them. He possibly could rent for cheaper in the area but is obviously reluctant to do so, if he can help it.
Thanks again for your advice |
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potless
Starting Member
46 Posts |
Posted - 02 May 2012 : 12:49:27
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| He has also fell into arrears with this mortgage and is three months behind, should he tell his lender he plans to go BR or wait until he is BR? Sorry for all the questions |
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Viki.W
forum expert
United Kingdom
2211 Posts |
Posted - 02 May 2012 : 12:51:46
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If he wants to keep his home, then I suggest he speaks to the mortgage company as soon as possible to come to an arrangement to clear the arrears.
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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potless
Starting Member
46 Posts |
Posted - 02 May 2012 : 12:54:44
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Thanks Vicki
Should he tell him he plans to go BR or just that he is financial difficulty? |
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Viki.W
forum expert
United Kingdom
2211 Posts |
Posted - 02 May 2012 : 13:02:57
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He doesn't have to tell the mortgage company anything.
Also, coming out of an IVA is a lengthy process, he would need to miss 3 months payments and then it can take a month or so after that before he get's his termination notice, so he needs to tell his IP what he wants to do asap.
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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potless
Starting Member
46 Posts |
Posted - 02 May 2012 : 13:58:47
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| He has spoken to his IP today and explained he is going BR. She has said to let her know once he has booked a date and she will do what she needs to do her end. He has also looked into renting in the area and there is very little available for any less than what he currently pays, is this something the OR decides? |
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Viki.W
forum expert
United Kingdom
2211 Posts |
Posted - 02 May 2012 : 15:33:29
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It sounds like the IVA has already failed as it would take months otherwise.
If the OR thought that the mortgage payments are excessive and that he could rent for cheaper, then yes, the OR can reduce the amount he/she would allow for the mortgage payment.
His IP can advise on all these things, or he can contact an expert on here for a chat.
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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potless
Starting Member
46 Posts |
Posted - 02 May 2012 : 16:55:33
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| thanks for the advice |
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Topic |
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I'm look for advice for a good friend who is having to go BR
