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John Tracey
Starting Member
United Kingdom
7 Posts |
 Posted - 24 December 2008 : 11:04:44
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I declared myself bankrupt in June of this year. I am a self employed carpenter. I have not been able to pay my mortgage for the last 4 months due to having insufficient work. I have to appear in court in January.
I bought my house a year ago for 242500.00. I paid 36000.00 as a deposit but with the housing market collapse, my house being sold would leave any cash after mortgage was paid.
My parents have offered me the money to pay off my mortgage arrears. Would my parents get that money back from any house sale if it did make money before any of the creditors in my bankruptcy?
I appreciate any help that you can give. I am extremely worrie about becoming homeless as wellas bankrupt. I have started work again just a few weeks ago and I have work until the end of February. I also have other projects to work on next year. I feel that now I am back at work, I will not get into any further arrears. |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 24 December 2008 : 12:25:38
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Hi
It is not usual for the mortgage company to demand ALL the arrears inone go. If they go to court a judge will look positively at your offer of repayment ( standard morgage payments PLYS X towards the arrears each month)
This is possibly a better plan that having your parents pay all the arrears off. In theory they might pay the arrears off and this might put the house into positive equity - which means that the OR would want this .
Suggest you make an offer of repayment to the mortgage company and then attend court to ensure that the Judge agrees.
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
Real People ..... Real Debt Solutions
www.revivauk.com |
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John Tracey
Starting Member
United Kingdom
7 Posts |
Posted - 03 January 2009 : 07:59:01
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Thanks Paul,
I owe about 5000.00 in arrears. My mortgage is approximately 1200.00 per month. I could afford to pay my mortgage plus 500.00 until arrears are paid off. Would this be a suitable offer? |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 03 January 2009 : 10:21:45
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Hi John
I would say that your offer would be a good one. We are paying back our arrears over 9 months, so yours would be over 10 which i would say is about right.
Let us know how it all goes;-)
Jo
x
22 Weeks down
30 to go
For more info on how i have come through bankruptcy and for links to help, you can read my blog here called:
Needafriend's Info on Bankruptcy :-)
http://debtfreejo.blogs.bankruptcyhelp.org.uk/
Needafriend says: Live life to the full, take life by the horns and live a little, otherwise life would be so boring! |
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John Tracey
Starting Member
United Kingdom
7 Posts |
Posted - 03 January 2009 : 10:26:04
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Thanks Jo,
I will let you know. |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 03 January 2009 : 10:33:34
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Your more than welcome ;-)
Jo
x
22 Weeks down
30 to go
For more info on how i have come through bankruptcy and for links to help, you can read my blog here called:
Needafriend's Info on Bankruptcy :-)
http://debtfreejo.blogs.bankruptcyhelp.org.uk/
Needafriend says: Live life to the full, take life by the horns and live a little, otherwise life would be so boring! |
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L20
Starting Member
46 Posts |
Posted - 03 January 2009 : 12:39:11
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Hi John
When you go to court the judge will accept a monthly offer for the arrears,and they generally accept an ofer so long as it would pay off all the arrears during the period of mortgage left to run so for example if you had 10 yrs left on your mortgage they would accept the arrears being calculated over this time. I know you probably wouldn't want it to take this long but all i'm saying is dont make an offer of £500 per month for the arrears if you feel that this may become difficult to maintain as then you would have to return to court to have the amounts changed and as the judge will put a suspended possession order on the house at the hearing you dont really want the stress of returning to court etc. Also you will be looked upon favourably if you start to make the extra payment to mortgage company now so that the judge knows you are trying to sort the problem before the court case. Also remember if you offer what you can comfortably afford you can pay more than that amount if you have any spare some months so this would be better than commiting to an amount that may become difficult to maintain.
Hope this helps
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RHB
Senior Member
1159 Posts |
Posted - 03 January 2009 : 15:56:37
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| Just out of curiosity, why is paying off arrears not looked at as prefering a creditor? |
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s4pps
Junior Member
252 Posts |
Posted - 03 January 2009 : 16:34:16
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Ooo, good question, I never thought of that.
Suzanne x
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 03 January 2009 : 17:49:07
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Hi
mortgage arrears are not classed as preferential treatment because the debt is secured, hiwever being able to pay 500 per month towards the arrears has 2 problems with it.
1. even if you can afford the 500 I would recommend paying less just incase youhave an income bump and need a bit of breathing room
2. with the ability to pay 500 pm towards the arrears then I am sure that the OR would have a problem with this. I would have thought that they would prefer 200 towards arrears ( still ok with mortgage co) but 300 towards an IPA ( pr percentage of 300)
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
Real People ..... Real Debt Solutions
www.revivauk.com |
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John Tracey
Starting Member
United Kingdom
7 Posts |
Posted - 04 January 2009 : 00:28:03
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| Thanks for all of the valuable information. I think a good point has been made in suggesting that I do not offer 500 per month because I am not really supposed to have that amount of spare cash. I will offer 200.00 per month. I will try and make a payment to the mortgage company in the coming week. I will keep you informed and once again thank you for your help. It is comforting to know that I can call on people like yourselves who do not know me yet are willing to help as friends. |
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John Tracey
Starting Member
United Kingdom
7 Posts |
Posted - 07 January 2009 : 21:14:20
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I took your advice and wrote to the solicotors acting for the mortgage company. I offered 200 per month on top of my normal mortgage payments. I had a letter back yesterday saying that they had spoken with the mortgage company and all had been accepted. They advised me to still attend court on Monday which I will.
Thanks for all of your help. |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 07 January 2009 : 21:15:57
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Hey John
That is great news, well done you;-)
Jo
x
22 Weeks down
30 to go
For more info on how i have come through bankruptcy and for links to help, you can read my blog here called:
Needafriend's Info on Bankruptcy :-)
http://debtfreejo.blogs.bankruptcyhelp.org.uk/
Needafriend says: Live life to the full, take life by the horns and live a little, otherwise life would be so boring! |
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I declared myself bankrupt in June of this year.
