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stu
Junior Member
United Kingdom
179 Posts |
 Posted - 11 August 2008 : 19:13:01
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Hi all
New to this forum and glad i've found it.
Ok, my dilemma?
We've just moved out of our house, into rented. Our house been on market for 18 months and has a mortgage of 147K. Secondary mortgage of 17K, loan for 3.5K and debt management owing 33K. Now im thinking that bankruptcy is the best option BUT we really don't want to live in rented and want to get another mortgage asap. And/or would our house we own be re-possed either with IVA and bankruptcy?
Thanks |
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John
New Member
United Kingdom
73 Posts |
Posted - 11 August 2008 : 19:34:04
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Hi stu & welcome to the forum,
what's the property value?
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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stu
Junior Member
United Kingdom
179 Posts |
Posted - 11 August 2008 : 19:40:37
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| Its on the market for 160K John but we'll never get that price. |
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John
New Member
United Kingdom
73 Posts |
Posted - 11 August 2008 : 19:48:46
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ok, are you renting the property out?
If you were able to acquire a new and additional property, would you intend to live in it?
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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stu
Junior Member
United Kingdom
179 Posts |
Posted - 11 August 2008 : 20:36:17
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No, we don't rent it out.
We want but a different property to live in after we either sell or after the house goes to auction by the mortgage lender. Its a house we don't really want to live in anymore as we feel we need a fresh start. |
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John
New Member
United Kingdom
73 Posts |
Posted - 11 August 2008 : 20:49:07
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Hi stu
you need to sell but even at £160K this would not cover the secured borrowing. If the sale goes to auction then the shortfall of sale price against your secured borrowings will be added as unsecured debt to the £33K.
If the house is repossessed in this way then the chances of you getting a mortgage anytime soon are slim, whether you're in an IVA or bankruptcy.
Aside from the repossession, if you go BR a mortgage is unlikely for at least 3 years but you may have more chance in an IVA.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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BankruptC
Senior Member
1030 Posts |
Posted - 11 August 2008 : 20:56:28
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Hi John,
Sorry to butt in (again), but can I just ask do you see it as being more difficult to get a mortgage in the future if the house is repossessed by handing the keys back than just by going BR?
CG. x |
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stu
Junior Member
United Kingdom
179 Posts |
Posted - 11 August 2008 : 21:07:05
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Thanks John.
My first question...what is 'BR'?
Secondly, Im due to be made redundant in November and will get 15K in redundancy. Will an IVA take that away from me as I know bankruptcy will? And are IVA's only on un secured debts? And how will me being unemployed affect payments on a IVA, will they reduce my payments? |
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John
New Member
United Kingdom
73 Posts |
Posted - 11 August 2008 : 21:12:46
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Hi
not necessarily if you wait long enough.
I just wanted to point out that lenders are nervous if you're in an IVA, reluctant if you've been BR in the last 3 years, but equally nervous if you are neither BR or in an IVA, if you've recently had a property repossessed.
Truth is if you want to come out of a repo without going BR then you have to find the funds to pay the shortfall. If not the lender will file for BR and have the power to oppose, as the biggest creditor, and IVA proposal.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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BankruptC
Senior Member
1030 Posts |
Posted - 11 August 2008 : 21:14:51
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Thanks for clearing that up, John. We're not going to be looking at getting another mortgage for at least 6 years anyway. So hopefully we'll be in with a shot then! 
CG. x |
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John
New Member
United Kingdom
73 Posts |
Posted - 11 August 2008 : 21:28:03
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Hi stu
BR is bankruptcy but we all get tired of typing it and mispelling it so the forum abbreviation is BR.
Can you hold on until you get the redundancy money?
If you wait until then you're likely to be able to pay around that figure in a Full & Final IVA and get rid of the £33K unsecured.
Yes secured debts, provide they remain secured, are not included in IVA or BR.
But, if the house is repossessed and there's a shortfall when sold. That debt now becomes unsecured as you no longer own anything to secure the debt against.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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stu
Junior Member
United Kingdom
179 Posts |
Posted - 11 August 2008 : 21:33:41
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quote:
Originally posted by stu
Thanks John.
My first question...what is 'BR'?
Secondly, Im due to be made redundant in November and will get 15K in redundancy. Will an IVA take that away from me as I know bankruptcy will? And are IVA's only on un secured debts? And how will me being unemployed affect payments on a IVA, will they reduce my payments?
Ians diverting you away from my question John.  |
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John
New Member
United Kingdom
73 Posts |
Posted - 11 August 2008 : 21:34:40
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Sorry stu
I should have added, if you're looking at standard IVA then £33K X 40p in the £ = £13200.
Divide that by 60 months = £220 per month.
They won't budge much lower if you're out of work.
Yours is a case with options.
Why don't you call the helpline tomorrow for free advice one to one. If you leave a message with the team I'll gladly call you back.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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BankruptC
Senior Member
1030 Posts |
Posted - 11 August 2008 : 21:52:34
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Sorry stu! 
John is extremely sharp though and usually manages to answer a couple of questions within the same thread. 
Sorry again...
CG. x |
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stu
Junior Member
United Kingdom
179 Posts |
Posted - 11 August 2008 : 21:53:33
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| Thanks John. I will call tomorrow for sure. |
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Topic |
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IVA or Bankruptcy??
