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Nicola.j
Junior Member
United Kingdom
267 Posts |
 Posted - 26 June 2008 : 14:33:47
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My job is relocating to scotland.I have a mortgage of 120k and a secured loan of 70k against my flat.I stuggle to keep up the repayments and cannot really afford both.Would it be best to get rid of the flat for whatever I can get and carry the loss forward or declare myself bankrupt.I also have cc/scard debts of 17k.
If I do go down the bankruptcy route can the company from the secured loan come after me after the three years is up?
I am going to rent in scotland would it cause any problems because I think the laws are different to here?
Are landlords going to react kindly if I am bankrupt ?
Many thanks
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 26 June 2008 : 20:16:03
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Hi there
Re the sale of your flat it isn't clear what the value is or what you might sell it for. You would probably find that the 2nd charge holder would probably refuse to release their charge if it wasn't paid off in full ( or very nearly ).
You should also remember the costs for estate agent and solicitors and these have to be aid as well.
Had you thought about renting it out until the house price situation evens out again?
If you go bankrupt without sorting out the house then this could cause a future debt that you would be laible for. if however you decide that this is the right route then you may consider handing back the keys and including the negative equity in the bankruptcy.
I would really suggest you speak to one of the forum experts to get spme advice about the various options open to you.
A lot really depends on what you wold like to achieve as an individual in the future .
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
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melanie_giles
Senior Member
1191 Posts |
Posted - 26 June 2008 : 22:50:12
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If you hand the keys back to the mortgage company, or they commence possession proceedings agains you, once the property is sold there will be a shortfall to the secured loan company which can be included in your bankruptcy proceedings.
The law in Scotland is different in that you would need to apply for either a Trust Deed or sequestration proceedings in the event that you were not able to keep you with your debt repayments.
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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Nicola.j
Junior Member
United Kingdom
267 Posts |
Posted - 27 June 2008 : 16:01:57
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Hi
What would happen to the secured loan after three years would I have to pay and would it be the full amount.
Thanks |
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melanie_giles
Senior Member
1191 Posts |
Posted - 30 June 2008 : 00:48:28
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You will need to pay the secured loan during the bankruptcy to avoid repossession proceedings being taken against the property.
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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Nicola.j
Junior Member
United Kingdom
267 Posts |
Posted - 01 July 2008 : 08:22:02
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Hi
My main problem is that I cannot afford to pay the secured loan.So is the best solution going to be to hand the keys back and then declare myself bankrupt before moving to scotland.
Thanks |
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melanie_giles
Senior Member
1191 Posts |
Posted - 01 July 2008 : 08:23:21
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If you have negative equity in the property, it would make sense to hand the keys to the first chargeholder before your relocation and bankruptcy.
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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Nicola.j
Junior Member
United Kingdom
267 Posts |
Posted - 01 July 2008 : 15:04:04
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Could I just ask anyone who has gone bankrupt and owned a property.Has it caused any problems when you have rented the impact on credit rating.
Thanks |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 02 July 2008 : 11:47:01
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Hi Nicola,
It's always best to get into your rental prior to BR. The reason is most letting agents will do a credit check before agreeing to the let. I have heard in some cases where the tennant is BR that the agent has insisted on 6 months rent up front.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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Nicola.j
Junior Member
United Kingdom
267 Posts |
Posted - 02 July 2008 : 16:44:57
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My credit rating is going to be bad anyway because I have been on reduced payments with credit cards.
How do you think that will affect it.
Thanks |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 04 July 2008 : 16:13:57
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Hi Nicola,
As long as you have a good work history, you should be fine.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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Nicola.j
Junior Member
United Kingdom
267 Posts |
Posted - 07 July 2008 : 13:32:42
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Hi
Something that is causing me concern now.I have been on reduced payments with my credit cards and payments have varied between £1.00,£10.00 and £50.00.The last one 50.00 was the least that they would accept at the time without taking further action.The problem is they have my debit card no .
What advice would you give?Is it better to reduce this to £1.00 but would this be seen as having given preferential treatment to one creditor?
I am probably declaring at the end of september once my rental in scotland is sorted out.
One more question about mobile phone allowance-is £35.00 reasonable and do you think that would be allowed.
Many thanks |
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melanie_giles
Senior Member
1191 Posts |
Posted - 07 July 2008 : 22:29:49
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Personally, if you have made up your mind that bankruptcy is inevitable, I would consider whether you should cease your payments to creditors altogether - as how will you ever save the money to meet the filing costs?
A phone allowance of £35 appears reasonable, but the OR is not a great fan of mobile phones so make sure you let them know it is carried for personal security reasons.
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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Nicola.j
Junior Member
United Kingdom
267 Posts |
Posted - 08 July 2008 : 09:06:51
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Thanks Melanie
Sorry a couple more questions
1.When I tell my first charge mortgage company that I am going to hand the keys back,how long after that do they require you to vacate the premises usually.
2.My first chargeholder is virginone so my bank account is combined with my mortgage.
Is it going to best to get another bank account opend now and tell them I am going to be declaring myself bankrupt so I can get my salary paid in or wait until after I declare.My worry is if I do that my bank account will be frozen and I wont be able to get any money.
Thanks |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 08 July 2008 : 15:02:55
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Hi Nicola,
If you are going to perform a voluntary reposession (handing the keys back), do it after you've got another place to go to.
I would suggest opening a new bank account asap to keep your salary seperate, as there could be something in the small print giving the bank the automatic right to take your mortgage payments.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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Nicola.j
Junior Member
United Kingdom
267 Posts |
Posted - 09 July 2008 : 09:42:19
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Hello
Just been informed by one of my creditors that they are probably going to issue a county court judgement for the debt I owe them.I have informed them that I am going to declare myself bankrupt at the end of august but they say that they will still pursue it until the bankruptcy happens and they are going to apply for a charge to be put on the property and may contact my employer for an attachment of earnings order.Please can you explain what this will mean.
Many thanks |
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Topic |
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questions on relocating to scotland
