Hi my boyfriend and i own a flat with a 119k mortgage and secured loan of 2.5k it was valued around 8 months ago at 105k. my boyfriend is a self employed electrician, and since the recession has had no work (after 8 weeks of looking for work he signed on) he has now got a contract but its considerably lower to what he was previously earning. all of our debt were put into a dmp in june 08. he has had a court judgement against him in jan 09 for 6k for his wholesalers which he can no longer pay due to decreased wages, yesterday he was served a writ saying they will take belongings from our property, but everything we have was bought by me all he owns is his clothes and a ps2, i have accumulated these things over the years and do not have receipts for them, as most were purchased through my catalogue. can they take my possesions? what are they legally allowed to take? if they turn up to take his stuff but obviously a ps2 will not cover 6k what will happen? he has also just received a bill for 5k from cancelling his van lease as he could no longer afford the payments when he was out of work.
If your boyfriend has debts which he cannot afford to pay then bankruptcy may be the option for him. If he files for bankruptcy all his debts would be included and no one would be able to attend the property and sieze assets. Whwther you also file or you do not file for bankruptcy yourself, you will not lose your home (providing you keep up with the mortgage payments and secured loan payments) as from the figures you have given the property is in negative equity.
Melanie Nicholas 28 years insolvency experience - 23 of which in the Insolvency Service - Insolvency Manager Jones Giles
i cannot apply for bankruptcy as i am training to be a chartered accountant, we cannot afford to pay the bankruptcy fee for my partner as all his wages just covers half the household bills/mortgage. if the people who are going to seize goods turn up to find insuffiecnt goods to satisfy the debt will they move to make him br?
If he cannot satisfy the debt and the creditor has been awarded an order of the court to seize assets, which they may not be able to do if he has none, the end result may be that they declare bankruptcy - or they may secure the debt on the property - this is very often the solution a creditor will go for if an individual has a property.
Melanie Nicholas 28 years insolvency experience - 23 of which in the Insolvency Service - Insolvency Manager Jones Giles
yep...the charge would sit there until you sold the property or cleared the charge regardless of any equity or not (interest is also charged on the debt at around 8%)
Melanie Nicholas 28 years insolvency experience - 23 of which in the Insolvency Service - Insolvency Manager Jones Giles
Hi my boyfriend and i own a flat
Posted - 27 February 2009 : 12:38:06
