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colin13
Starting Member
1 Posts |
 Posted - 06 February 2009 : 08:11:18
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My wife and i have filed for bankruptcy in Shrewsbury on 7th Jan 2009.
We own our home and have a mortgage of 295k. The house was valued in Dec 2008 at 300k and the house values are still failing - here we are told the house is now worth 260 -270k?
I earn 50k but my wife is out of work after the closure of her business (hence banckruptcy). Becasue of this she is unable to claim any benefits and has been told she cant claim dole and I must keep her?
The IP told us yesterday that she felt we are paying too much in morgage (£1600 p/m which we are up to date and can continue to do so) and we she feels that we should give up the house and move into a 3 bedroomed rented house for say £1000 per month and pay back over 3 years £550 towards our debt?
We live in the country and have my step son (aged 8) with us full time and my 2 girls aged 11 & 7 half a week each week. They need seperate bedrooms and I already have a 50 mile round trip to collect & return them. My stepson has to go to school by taxi?
the IP has asked me to write to them stating why we should keep this house?
Please please help this is all we have and we would be paying out the same amount of money with nothing at the end?
This house would sit here empty and I would be defaulting when there is no need for me to do this with the secured mortgage etc
Thank you Colin & Heather Davies
phone number removed by admin to avoid any spamming attempts on you |
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Melanie.n
forum expert
United Kingdom
1282 Posts |
Posted - 06 February 2009 : 08:30:50
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Do as the OR suggested and put in writing 'your case' for keeping the house - there is no equity so you do not have that to worry about, stress the need for the accommodation due to children etc You have nothing to lose - the better the 'case' you put forward the greater chance you have of them accepting the situation. They are human and will accept explanations such as the one you have provided the forum, just lay it on thick!
One question are you Repayment or interest only ?- perhaps if you are repayment and changed to interest only for the period of the bankruptcy your mortgage payment would reduce
Melanie Nicholas
28 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
01446 711780
melanienicholas@jonesgiles.co.uk |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 06 February 2009 : 09:57:16
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Colin, it would be best if you removed your phone number from your post - you never know who reads the forums and you don't want cold calls all the time.
Good luck with keeping your house x
Tomorrow is a mystery, yesterday is history, today is the present, a gift to make the most of.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
20 IPA payments made, 16 to go - on the home straight! |
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John
New Member
United Kingdom
73 Posts |
Posted - 06 February 2009 : 11:07:19
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Hi Colin
firstly may I repeat skippy's advice to remove your mobile number from your post asap. You could get some unwelcome calls.
I also agree with Melanie that you should write down all of the advantages of staying in your property, the disadvantages of not doing so and look into changing to interest only if you have not already done so. This may well free up sufficient disposable income for the OR to propose a 3 year IPA which he will no doubt look upon favourably.
I would not wish for one moment to give you false hope and suggest all will be well, more a little info which may go some way to allowing you to believe that all may not be lost.
The situation is that your property is very likely in negative equity. It is also true to say that the market being as it is the buyers that are out there are looking for bargains, therefore you could well be looking at a sale price of £250K or less.
To force the sale the OR will need to apply to the court.
Two points to consider:-
Point 1) It is fact that the OR has the power to apply to the court for a forced sale if he deems your mortgage repayments are excessive.
Point 2) In my opinion it is very unlikely the court will actually grant the application.
Why?
Because this would prejudice your mortgage lender's postion in that they would likely receive approx £50K less than they are owed AND by definition increase your indebtedness thus prejudicing every creditor you have as any monies realised from your estate will now receive much less pro rata because the mortgage lender is now also on the list.
Forced sales are more common in the days when most property owners had sufficient equity in their homes so as not to prejudice the mortgage lender, even after a forced sale at below market value.
Keep your chin up Colin, all is not lost just yet.
timendi causa est nescire
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RHB
Senior Member
1159 Posts |
Posted - 06 February 2009 : 18:28:17
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| It is a big mortgage though, how many bedrooms does it have? |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 06 February 2009 : 22:43:19
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Further to John's note I understand that the OR should not consider making one homeless to pursue and Income Payment Agreement.
In addition now that you are bankrupt you will likely need 6 months rent up front plus a month in advance plus moving costs etc.
It might be worth asking the OR how you are able to gather together £8,000 ish to move house in these conditions.
I suspect that if you put a solid case together re number of bedrooms, the fact that you would indeed be increasing the debt by upwards of 50k, ths possibility that the lender will take legal action against the OR for "creating " the debt amd the requirement for the 8k to move, then there is a strong possibility that sense will prevail
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
08454 751 851
Real People ..... Real Debt Solutions
www.revivauk.com |
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My wife and i have filed for bankruptcy
