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raniston1984
Starting Member
19 Posts |
 Posted - 02 March 2009 : 21:17:13
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i am begining the process to go bankrupt, and i spoke to an advisor today.........
i was asking about my flat, it is in negative equity.. she said i need to get a quick sale valuation by an estate agent. do I tell teh estate agent my reasons for wanting one, or pretend I am selling?
and is that enough information for the OR? do I have to do this before my initial court appearance where I hand inthe SOA form?
and she said that whilst I have rent of £800 to cover the £800 mortgage from my friends who lodge, this must be only maximum 40% of my income, or the OR/ mortgage company may think I am unable to afford it.
I have a good mortgage history and have not yet missed a payment, and have had it for 3 years. I am not sure if my income will stretch far enough though... how strict/ important is this 40% rule?
As i believe my income is:
£800 (from rent for the mortgage)
£583 (from student loans,grants,bursaries etc, i get £7000 pa. assuming I still recive this when bankrupt)
so this isnt enough...
but I thought when filling in the forms, if I get a rental agreement with my friends drawn up for £1200 instead of £800, then I have the £583, with a £217 shortfall from teh required level of £2000... which I can ask my dad to say he gives me a monthly allowance to help me through uni..
do you think this would work???? or would that now make me earn too much to go bankrupt?! (my debt is £63000 with around £2000 outgoing each month)
thank you for reading,.. any advice is greatly appreciated thank you :)
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John
New Member
United Kingdom
73 Posts |
Posted - 02 March 2009 : 21:35:50
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Hi
you don't need to tell the estate agent the reason. Ask for a quick sale valuation on the grounds that you have been offered a job at the other end of the country and only have a limited time in which to accept or reject the offer. Taking the job would depend on being able to sell the flat fairly quickly and at the right price. If the agent subsequently asks if you want to market the flat you have now decided to relocate for the new job is not viable.
It's not imperative but it would be a positive if you could supply the OR with a written copy of the market appraisal when interviewed.
A mortgage is not included in bankruptcy so as long as there is no equity the OR will have no interest and if there are no arrears neither will the lender.
The fact that the rent covers the mortgage exactly should not be a problem.
If you did not live at the property yourself, and therefore it deemed an investment property, you would have a problem as investment properties are not treated the same as the home in bankruptcy.
The OR has a max 3 years in which to deal with the home and in today's climate a negative equity property is pretty much of no use to the OR, now or within the 3 years.
With an investment property the OR can take many years to deal with it thus claiming the equity gained many years down the line.
Falsifying the rental agreement is of little use as evidence of the proposed increased rental income will not be apparent on your bank statements.
Not to mention the fact that you would be perjuring yourself.
John White
England Jackman & Spacey |
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raniston1984
Starting Member
19 Posts |
Posted - 02 March 2009 : 22:03:42
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ok I will call the estate agent first thing tomorrow, thank you so much for your advice John it is really helpful
I am beginning completion of the SOA form tonight... so no doubt I will have further questions.
Thanks again |
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| bankruptcyhelp.org.uk Forum |
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my home is also -ve equity, whats this 40% rule??
