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Carl.lk
Starting Member
2 Posts |
 Posted - 07 June 2012 : 16:10:34
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| Following a failed business i took up an IVA. Now with the Standard variable rate rising so drastically my mortgage has become unbearable. The IVA Company have offered to reduce by 15% but this would have little effect on our circumstances. There is absolutely no equity in my home. Now im looking into bankruptcy and Im wondering what are valuable assets exactly, could a relative purchase my home after repo? If not what becomes of my home. There will be a shortfall without doubt, Please help? |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 07 June 2012 : 16:29:45
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Hi and welcome.
How long have you been in your IVA? It may be possible to reduce your payments by more than 15% by having a variation meeting with your creditors.
Which IVA company are you with?
Follow through
Make your dreams come true
Don't give up the fight
You will be alright
'Cause there's no one like you in the universe
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Carlsob
Starting Member
United Kingdom
7 Posts |
Posted - 07 June 2012 : 16:39:45
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I have been with Grant Thornton for 18months. My big concern is that the shortfall on the house wont be included in the bankruptcy. would i be better selling privately and including shortfall in bankruptcy. Have been to CAB, CCCS, and Grant thornton and no one seems to have the answers
sob |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 07 June 2012 : 16:45:55
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Your shortfall will be included in bankruptcy regardless of whether you sell privately or have the house repossessed.
Have you tried contacting Karol from GT who posts on the sister forum?
Send her an email via this:
Email ivacustomerservices@uk.gt.com and ensure that "IVA Forum" is all that is entered in the subject line of the email
I don't know if you are on the sister forum but if not then mention that you have posted on here and would appreciate a reply back to your personal email as soon as possible.
She may be able to help you.
Follow through
Make your dreams come true
Don't give up the fight
You will be alright
'Cause there's no one like you in the universe
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Carlsob
Starting Member
United Kingdom
7 Posts |
Posted - 07 June 2012 : 17:59:59
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How long after bankrupt declaration do you have to leave the house or is it immediately?
sob |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 07 June 2012 : 18:07:52
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If you are looking to leave your house then I would suggest you find somewhere to rent now before you declare bankruptcy.
Do you want to keep your house?
Follow through
Make your dreams come true
Don't give up the fight
You will be alright
'Cause there's no one like you in the universe
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debtinfo
forum expert
2826 Posts |
Posted - 07 June 2012 : 18:15:19
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| An important question here, is how much are you mortgage payments (and any other payments secured on the house) and how do they compare to local rental prices |
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year 2029
Average Member
590 Posts |
Posted - 07 June 2012 : 18:33:47
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If its your family home, you can be granted up to a year to find alternative housing if the OR wishes to sell.
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Views expressed are my own personal views, based on what has happened during my own BR process unless otherwise stated.
Professional advice should always be sought. |
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Carlsob
Starting Member
United Kingdom
7 Posts |
Posted - 08 June 2012 : 11:25:26
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my mortgage is around the same as rental prices but i then wouldnt have the iva payments to make so effectively would be better off. I was also wondering what does it mean when a relative buys the beneficial interest and how does this work?
sob |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 08 June 2012 : 12:35:38
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You wouldn't have the IVA to pay but you could very well end up with an IPA which could be the same amount as your IVA payments.
Follow through
Make your dreams come true
Don't give up the fight
You will be alright
'Cause there's no one like you in the universe
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Carlsob
Starting Member
United Kingdom
7 Posts |
Posted - 08 June 2012 : 14:09:56
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yes but surely you have to have a reasonable amount to live on. were very low income family and we wont have much to spare after bills anyway?
sob |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 08 June 2012 : 14:15:12
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If you have more than £20 DI a month after your bills are paid then all of that will be taken in an IPA.
Follow through
Make your dreams come true
Don't give up the fight
You will be alright
'Cause there's no one like you in the universe
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Carlsob
Starting Member
United Kingdom
7 Posts |
Posted - 08 June 2012 : 14:16:42
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surely you have to be allowed more than £20 a month food, nappies, baby milk etc?
sob |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 08 June 2012 : 14:19:19
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I'm talking about after you have paid your normal things such as food and all normal bills etc - an OR will go through what you are allowed to claim for. If, after that, you have more than £20 left then it will all be taken off you.
You do have allowances for all sorts of things, as you had in your IVA.
Follow through
Make your dreams come true
Don't give up the fight
You will be alright
'Cause there's no one like you in the universe
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Carlsob
Starting Member
United Kingdom
7 Posts |
Posted - 08 June 2012 : 14:21:11
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Thats better than current situation then. Cost of mortgage is now such that to pay that and iva would mean i couldnt pay normal bills
sob |
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year 2029
Average Member
590 Posts |
Posted - 08 June 2012 : 22:25:41
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Hi Carl,
One of your questions seems to have slipped by without being answered.
If a relative/friend buys the Beneficial Interest (BI) of your house, it removes your home from the bankruptcy estate.
If you are in negative equity, this is usually £1000 +vat. You can also wait until it is revalued 2 years and 3 months later, when the Official Receiver values it again and decides which way to go forward. If its still in negative equity, after 3 years it would be automatically handed back to you.
If you have equity, then you'd have to negotiate the amount payable.
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Views expressed are my own personal views, based on what has happened during my own BR process unless otherwise stated.
Professional advice should always be sought. |
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Topic |
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With standard variable rate rising I'm looking into bankruptcy.
