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Maz
Junior Member
United Kingdom
239 Posts |
 Posted - 26 August 2008 : 18:06:06
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Hi, If i go bankrupt and include the negative equity from my buy to let properties together with my outstanding loans and credit card balances what actually happens to the debt? Does it get completely written off or do I still need to pay monies back to the OR? Any advice much appreciated
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 27 August 2008 : 09:57:20
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Hey Maz,
That all depends. You may well end up paying a small percentage of your debt back in the form of an IPA, the mortgages as long as they are listed on the SOA as shortfalls etc then technically they should be included and the debt written off eventually.
Please note that some debts cannot be included like student loans, CSA etc and so you will still have to pay these.
I dont know how the buy to let bit works, maybe one of the other experts will know about that one.
After a year if you have not had to pay an IPA then you become discharged usually then yes the debt is gone, if you have an IPA then it is up to 3 years that you will pay towards them then they are gone. Obviously that is ones that have been included.
You should get discharged after the year and some people not many can get further restricitons imposed such as a BRU or BRO which would mean yes you are discharged but have some other things in place to stop you taking more credit over £500 and also certain jobs, but these are only done when the OR thinks their may be a bit of naughtiness involved when looking through your case. Like selling a property for less and not including it, or not paying of the debts with it, taking credit with no real means of paying it back.
Try not to worry though one of the other experts can advise more on what I have said.
Thanks
JO
"There is light at the end of the tunnel, if you cant find it, get a brighter torch!"
You can read my blog here:
http://debtfreejo.blogs.bankruptcyhelp.org.uk/2008/08/24/my-debt-free-future/ |
Edited by - Needafriend on 27 August 2008 09:58:23 |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 27 August 2008 : 12:25:07
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Hi Maz,
As secured lending is excluded from BR, the only way negative equity would be written off is if your property was reposessed prior to BR.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
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Nicola.j
Junior Member
United Kingdom
267 Posts |
Posted - 27 August 2008 : 12:35:23
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Hi
Sorry to hijack the thread.I am going bankrupt on 11/09 and moving out a week later (giving back the keys).What has julian has just said has worried me.Should I be filing after I have moved out .If the latter is the case I am moving to scotland so it could complicate things.
Many thanks |
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scared
Junior Member
United Kingdom
220 Posts |
Posted - 27 August 2008 : 12:39:11
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Hi Julian - sorry, just saw your post. We have negative equity and a secured loan and put the possible shortfall in our BR forms. Will this get captured in the BR, as our house has not been repossessed yet and we went BR at the end of July? I thought that as long as the house was repossessed before discharge from BR, that this would get captured.
Am confused again. |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 27 August 2008 : 12:39:27
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Hi Nicola,
Is your property subject to a reposession order? If so, ensure all your secured lending is also included in the unsecdured section of your SOA with "shortfall following reposession" as the reason for how the debt was incurred.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
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Nicola.j
Junior Member
United Kingdom
267 Posts |
Posted - 27 August 2008 : 12:45:40
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Not as yet but come 01/09 I will be three months in arrears with the secured loan so could happen.As its not got a repossesion order at the moment I am just handing back the keys is that going to affect the way I do things ie 11/09 bankruptcy and then move out a week later.
Many thanks |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 27 August 2008 : 13:00:32
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Hi Nicola,
You are in a bit of a grey area here. However, as long as the sucured lending is included in both sections AND you make the OR aware that you're doing/have done a voluntary reposession, you should be fine!
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
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Maz
Junior Member
United Kingdom
239 Posts |
Posted - 27 August 2008 : 20:18:06
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Hi, I have already filled out my forms but should I add the estimated negative equity in our properties in the unsecured lending bit of the form as I will be handing back the keys as am already nearly three months in arrears on 4 properties????. I have an appointment with the Court on Monday 1st Sept.
quote:
Originally posted by JulianDonnelly
Hi Nicola,
You are in a bit of a grey area here. However, as long as the sucured lending is included in both sections AND you make the OR aware that you're doing/have done a voluntary reposession, you should be fine!
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367
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what actually happens to the debt?
