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james54527
Junior Member
United Kingdom
180 Posts |
 Posted - 19 March 2008 : 22:33:52
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Me and my wife are in the process of an IVA with Melanie giles, but we are having trouble with our mortgage as its shared ownership. we own 70% and martgage companty 30%.
So we are exploring and fact finding on bakruptcy.
our debt are approx £60k all unsecured, our mortgage is paid upto to date.
We have a few question.
1. we noted on other post its possible to keep house? how?
2.My wife is a self employed domestic cleaner we she have to give this up?
3.Our cars worth approx £2k each not on finance, will these be taken, i travel 50miles round trip to work and wife needs hers for business. will they be taken as well?
Thank you in advance |
Edited by - james54527 on 19 March 2008 22:43:35 |
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pix1
Average Member
689 Posts |
Posted - 19 March 2008 : 22:52:12
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| You would be able to keep your house in an IVa, though you might have to remortgage it to release some equity towards tyour iva expenses in the 4th or last year of the 5 years IVA. Your cars re below 2.5k so should be able to keep them. |
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james54527
Junior Member
United Kingdom
180 Posts |
Posted - 19 March 2008 : 22:57:33
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quote:
Originally posted by pix1
Yo Your cars re below 2.5k so should be able to keep them.
Read on another post that if your car above 1.5k it will be taken has the level been raised |
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pix1
Average Member
689 Posts |
Posted - 19 March 2008 : 23:20:34
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I am not an expert. One of the bankruptcy specialists will probably reply in due course but I believe - certainly in bankruptcy - a car should not be worth more than 2k or 2.5k or it would need to be sold and the above amount released to buy a cheaper car. In an IVA I think the same rules would apply.
you could also try the IVA sister forum on this link;
http://iva.co.uk/forum/active.asp
Best of luck. |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 19 March 2008 : 23:21:59
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Hi James
in br the cars as indeed your wife's job is fine. However if I understand your post correctly and you have a shared ownership house;- 70% yours but mortgaged and 30% owned by the housing association then this could prove quite tricky in a Br.
There are also often rules about Br and shared ownership houses that would need to be investigated.
I have every confidence that Melanie's team will review every soltion to debt and if Br is the most appropriate then they will let you know. Also there are new guidleines for year 4 equity clause and these are best discussd directly with Melanie.
Good luck
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
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james54527
Junior Member
United Kingdom
180 Posts |
Posted - 19 March 2008 : 23:27:00
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quote:
Originally posted by Reviva UK
However if I understand your post correctly and you have a shared ownership house;- 70% yours but mortgaged and 30% owned by the housing association then this could prove quite tricky in a Br.
Yes it is 70% mine mortgage 30% the mortgage company |
Edited by - james54527 on 19 March 2008 23:29:26 |
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james54527
Junior Member
United Kingdom
180 Posts |
Posted - 19 March 2008 : 23:36:59
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With regards to my house could someone explain how it works with someone (e.g.family member) paying the equity for me. what happens to mortgage etc.
sorry for being an idiot don't understand it. really want to keep children in same school its very good. small welsh community so little rental options in area and would mean we would have to move out of the area and change there schools and this is my main concern. i am willing to take the punishment for naivity and stuidity but don't see why they(my girls) should. |
Edited by - james54527 on 19 March 2008 23:38:20 |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 19 March 2008 : 23:38:01
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So if you have a 30% mortgage - which means you have 70% equity then you would almost certainly loose the house in Br.
I guess that you have already discussed with melanie's team the possibiity of remortgaging now and making a full and final IVA?
worth asking them about it - but again they really know what they are doing and will serve you well
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
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james54527
Junior Member
United Kingdom
180 Posts |
Posted - 19 March 2008 : 23:42:33
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| Sorry paul miss communication i have a shared mortgage with the mortgage lender. i have a mortgage with Advantage they have a 30% stake in my property i pay mortgage on 100%, 70% at full rate which is mine on the mortgage and 30% which they hold on a lower interest rate. |
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Helpful Advice
Average Member
United Kingdom
646 Posts |
Posted - 20 March 2008 : 08:03:09
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Hi James54527,
As Pix1 and Paul have said both your jobs and vehicles will be fine.
Your property on the other hand requires further investigation, normally with shared ownership as Paul says it is between a housing assosiation and the person, however in your case it seems it is between the Mortgage company and yourself of which my understanding is that you own 70% of the property and the mortgage company 30% your 70% is subject to a 100% mortgage? I have not seen this directly with a mortgage comapny before.
Is the property in joint names with yourself and your wife for your 70% share?
As Paul says when shared ownership is with the housing assosiations there is normally some clause regarding IVA's and Bankruptcy, so I would suggest talking to the mortgage company first.
Hope this helps.
Kind Regards,
Brett England
View my Blogs at:
http://HelpfulAdvice.blogs.bankruptcyhelp.org.uk/
Bankruptcy Specialist
England,Jackman & Spacey
WebSite www.ejands.co.uk
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james54527
Junior Member
United Kingdom
180 Posts |
Posted - 20 March 2008 : 20:45:01
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Sorry to state again
Bought my property for 110k.
Put 5.5k deposit down leaving a mortgage of 104.5k.
This is split into a 70/30 split. With us and mortgage company.
We pay payment on the full 104.5k
but our 70% is at approx 5%interest(tied in till 2009) rate and the 30% is at 2.99%(fixed till the end of the mortgage).
When or if we sell we have to give 30% of the equity of the property back to the mortgage company.
Its this that a problem when it comes to an IVA as we can't remortgage for 85% of the property value. |
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Helpful Advice
Average Member
United Kingdom
646 Posts |
Posted - 20 March 2008 : 21:24:22
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Hi James,
On this basis it sounds like you have very little equity and is unlikely to cause you any real roblem with regard to Bankruptcy, However I would call the mortgage company and disscuss your intentions with them.
Kind Regards,
Brett England
View my Blogs at:
http://HelpfulAdvice.blogs.bankruptcyhelp.org.uk/
Bankruptcy Specialist
England,Jackman & Spacey
WebSite www.ejands.co.uk
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melanie_giles
Senior Member
1191 Posts |
Posted - 21 March 2008 : 09:26:57
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Hi James
We are already dealing with these matters for you in-house - so if you have any concerns it is probably better to speak to me directly. Insolvency Practitioners and creditors are very aware of the difficulties encountered with shared ownership properties, and these are relatively simple to covercome. |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 23 March 2008 : 20:39:00
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Hi James,
It is always best to talk the situation through with your Supervisor.
In this case Melanie and her team are known to us on the forum and will work through every variable with you to find the best way forward.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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Topic |
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House and cars
