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givemestrength
Junior Member
United Kingdom
141 Posts |
 Posted - 30 January 2009 : 17:41:32
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| hi, is it true you can possibly buy your own BI if in neg equity? thanks v much |
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John
New Member
United Kingdom
73 Posts |
Posted - 30 January 2009 : 17:53:26
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Hi
the OR would usually point you towards a non bankrupt spouse or partner to purchase the BI at minimum cost of £1 + fees.
However, it is the case that the bankrupt themselves can buy it. If they know nobody that they can trust the bankrupt may choose this option.
The very large downside, and why it is not generally known, is that to do this the purchaser (the bankrupt) would have to pay what is known as an Ad Valorem Fee which is effectively paying the stamp duty again as if he / she were buying the property for the first time. The fee in this situation is 1% of the market value, hence the preference in virtually every case is to buy at £1 + fees through a 3rd party. |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 30 January 2009 : 18:51:57
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There are occasions where folks haven't told family members, friends etc about the Br and want to keep it a private matter.
There are companies who can act for you to purchase the BI and then pass it back to you in 13 months for an admin fee. This is quick and an option for privacy.
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
Real People ..... Real Debt Solutions
www.revivauk.com |
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John
New Member
United Kingdom
73 Posts |
Posted - 30 January 2009 : 19:22:51
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Hi Jo
please don't worry.
Remember in bankruptcy you and hubby are seperate cases. To avoid the fee when both parties go bankrupt in a situation like yours, hubby buys your BI and you buy his, thus avoiding the fee.
I know, what a load of red tape!!!!! |
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John
New Member
United Kingdom
73 Posts |
Posted - 30 January 2009 : 20:06:24
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| Correctamundo Jo |
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givemestrength
Junior Member
United Kingdom
141 Posts |
Posted - 31 January 2009 : 08:04:37
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| thanks for making that clear Jo, John + Paul. |
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Topic |
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hi, is it true you can possibly buy your own BI
