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faganagent
Starting Member
4 Posts |
 Posted - 09 March 2009 : 13:59:34
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| hi,my question is can i go brankrupt but still have no affect on my house if i can still pay the mortgage and bills.All my credit cards and loans or not tied to my house.Im not making a income at the moment but can pay my mortgage and council tax and bills.I have equity in my home but not enough to cover my loans,though if truthful would rather not pay it from selling my home as this is my family home with my son.Im still married but separated from my wife and have settled with her reference her money and property February last year.Im in a catch 22 situation as im just sinking very fast due to my employment status.I dont claim anything and do not wish to though i know that within the next year im going to be sunk and would rather know take action while i can and not affect my family home but more my credit status.Can you give me advice on this matter.Many thanks. |
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John
New Member
United Kingdom
73 Posts |
Posted - 09 March 2009 : 14:44:42
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Hi
I presume the house is now in your sole name and as such any and all equity belongs to you.
In bankruptcy you will be expected to pay whatever the equity figure in the property is to the OR if you wish to keep it, if you can't raise that money the OR will force a sale.
Therefore with your present job status as it is it is looking very much as though you will not be able to keep the property unless you have a relative who will pay the value of the equity in the home to the OR on your behalf.
This is known as buying your beneficial interest in the property.
However, depending on the level of equity in the property and on how much your unsecured debt amounts to in total, you may be better to sell the property and offer the proceeds to the creditors via a Full & Final IVA. This will not save the property but will have much less impact on your credit scoring etc for the future than bankruptcy.
As a rule of thumb for this to be a possibility you will need the net sale proceeds from the sale of the property to equal around 30% to 40% of your total unsecured debt.
Remember some of the proceeds would need to be used in securing a rental property.
John White
England Jackman & Spacey |
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faganagent
Starting Member
4 Posts |
Posted - 09 March 2009 : 14:58:03
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Thanks John,maybe ive got it wrong but i thought that these unsecured loans were that unsecured and thus because if i choose to declare myself bankrupt these unsecured debts will be wiped off with only my credit status being question?My house is in my sole name and my debts are not attached to my home property.Surely if i can only show that as long as i can pay my mortgage and council tax plus home bills then my home cannot be assumed as equity.Obviously I am not behind with my mortgage or any other bills and have so far kept a float.With current credit crunch surely i wouldnt be asked to sell my house to settle these debts or have i got it totally wrong.
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 09 March 2009 : 15:23:25
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If you have equity in your home, then the OR is entitled to realise that equity to pay towards your creditors, regardless of the fact that you may be making your mortgage payments. It doesn't matter that your other loans are unsecured.
If you cannot find anyone to buy the beneficial interest in the home, then the OR can insist that it is sold.
If your son is young, I believe that the OR won't insist on a sale straight away.
If you have no income, how are you managing to keep up with your other payments?
The glimmer gets brighter all the time
Jan
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faganagent
Starting Member
4 Posts |
Posted - 09 March 2009 : 15:36:41
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Thankyou for your comments,what if there was no equity?Wil this then be a straight forward bankruptcy request where then debts are wiped off or not?How i pay my bills at the moment is thru money i have my earlier question was that i have not fallen behind with payments but my supply of liquid funds will evaporate within a certain time period.
No glimmer just darkness.....
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 09 March 2009 : 17:15:25
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If your house is in negative equity, then you can buy back the BI for £1 plus £211 court costs. That would take it out of the equation.
It would then become a straightforward application where all your secured debts were written off.
The glimmer gets brighter all the time
Jan
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faganagent
Starting Member
4 Posts |
Posted - 09 March 2009 : 17:46:04
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Thank you once again,could i ask who decides the valuation and who pays for that evaluation of the property and can i discuss or argue with due diligence, if i dont agree with that evaluation as once again we are in a demise with property prices at the moment.
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 09 March 2009 : 17:53:53
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That I can't help you with I'm afraid.
One of the experts will be along shortly to answer that question.
The glimmer gets brighter all the time
Jan
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brankrupt but no affect on my house?
