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andrew.h
Junior Member
202 Posts |
 Posted - 05 April 2008 : 12:08:25
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My only asset is my house, if i go bankrupt will I have to move out straight away or will i be allowed to stay in the house until it is sold?
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melanie_giles
Senior Member
1191 Posts |
Posted - 05 April 2008 : 12:42:33
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Hi Andrew and welcome to the forum
I assume that you own the property and live alone? Technically the OR can apply for a possession order straight away, but it is more usual for them to allow you to remain in the property for the first year to enable you to make alternative living arrangements. If you accept that the property will eventually need to be sold, I can see no reason why you would not be allowed to remain in it at least during the first year, but you will need to maintain the mortgage payments during this period.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
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andrew.h
Junior Member
202 Posts |
Posted - 05 April 2008 : 12:50:23
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| If a posession order is granted immediately or after a year, will i then have to stop paying my mortgage, secured loan and ccj that are charged to the property? |
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melanie_giles
Senior Member
1191 Posts |
Posted - 05 April 2008 : 15:34:06
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You don't have to stop paying the mortgage, but there would seem little point in doing this if the property is eventually going to be sold. Don't forget that you will probably need to fund a rental deposit for a new property which you will probably need to save up for, and removal costs.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
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andrew.h
Junior Member
202 Posts |
Posted - 05 April 2008 : 16:06:00
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If i don't pay the mortgage then this will lead to the house being repossessed. Will the mortgage company repossess if the house is for sale? Will the OR take action against me for allowing the house to be repossessed?
but like you say i would have to pay rent to live elsewhere. |
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melanie_giles
Senior Member
1191 Posts |
Posted - 05 April 2008 : 16:28:04
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Once you miss more than three payments to the mortgage company this gives them the right to seek a possession order - and this can happen if the house in in the process of being sold. The OR will not take action against you if you allow your house to be repossessed.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
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andrew.h
Junior Member
202 Posts |
Posted - 05 April 2008 : 16:37:09
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| As well as the mortgage, i have a secured loan and a ccj charged against my house. Would these count as unsecured debts and be wiped off as part of my bankruptcy? |
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Helpful Advice
Average Member
United Kingdom
646 Posts |
Posted - 05 April 2008 : 18:40:11
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Hi Andrew,
If the property is repossessed by the mortgage company and the house sells at a shortfall then the outstanding amount to these creditors would become unsecured and form part of your Bankruptcy debts, however I can't see the OR forcing the sale of a property if it is likely to sell at a loss to your secured creditors. They would only look to force the sale of the property if there is sufficient equity to allow a dividend payment to your creditors.
Maybe you could post some more details about your property.
What is the market value?
What is the redemption figure for your mortgage?
What is the balance of the secured loan and ccj debt?
With these details I can give you advice on what to expect.
Kind Regards,
Brett England
Bankruptcy Specialist
England,Jackman & Spacey
WebSite www.ejands.co.uk
View my personal story & blogs at:
http://brettengland.blogs.bankruptcyhelp.org.uk/ |
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andrew.h
Junior Member
202 Posts |
Posted - 05 April 2008 : 18:47:16
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Valuation of my house via the internet searches is approx £107,500, the outstanding mortgage is £75k, with the secured loan and ccj totalling £13k.
The house is not in great shape and would probably have to be sold at below market value. |
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Helpful Advice
Average Member
United Kingdom
646 Posts |
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andrew.h
Junior Member
202 Posts |
Posted - 05 April 2008 : 19:33:49
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| There is a further £52k of unsecured debt. I am currently paying approx £86 per month to creditors and trying to live on £80 per month (food, car tax & servicing, birthday cards / presents, social gatherings etc) after all my bills. |
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Helpful Advice
Average Member
United Kingdom
646 Posts |
Posted - 05 April 2008 : 19:51:20
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Hi Andrew,
How much are you paying to your secured creditors i.e. the mortgage, Loan and CCJ?
Would selling the property yourself be an option?
You could write to the creditors and explain your intentions offering them £1 per month as a good will gesture.
With the sale proceeds you could well propose a settlement of around 30p in the £1 via an IVA depending of course on the sale price.
Kind Regards,
Brett England
Bankruptcy Specialist
England,Jackman & Spacey
WebSite www.ejands.co.uk
View my personal story & blogs at:
http://brettengland.blogs.bankruptcyhelp.org.uk/ |
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andrew.h
Junior Member
202 Posts |
Posted - 05 April 2008 : 20:21:56
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| In total i am paying around £640. I'm currently looking at an IVA but i suspect that i will not have enough spare cash per month to fund it. Unless your suggesting that the equity from the house sale would be all I was offering (eg. no payments over the 5 yrs)? |
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Helpful Advice
Average Member
United Kingdom
646 Posts |
Posted - 05 April 2008 : 22:57:58
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Hi Andrew,
Yes by offering a nominal payment to creditors it may buy enough time to sell the property.
If the proceeds from the sale suffice then a lump sum IVA could be the right course of action and with no other assets it would give a better return to the creditors than Bankruptcy.
Kind Regards,
Brett England
Bankruptcy Specialist
England,Jackman & Spacey
WebSite www.ejands.co.uk
View my personal story & blogs at:
http://brettengland.blogs.bankruptcyhelp.org.uk/ |
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melanie_giles
Senior Member
1191 Posts |
Posted - 06 April 2008 : 02:22:14
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If the sale price is confirmed by a reputable estate agent, and you agree to co-operate with the marketing an IVA may be possible depending upon your circumstances, and to this end you ought to take advice from an insolvency practitioner as to your options.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
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andrew.h
Junior Member
202 Posts |
Posted - 06 April 2008 : 08:38:20
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| Thank you both for your advice.My situation is that for the last two years i have been paying a nominal amount to my creditors, and i have spoken to a financial advisor who advised bankruptcy. Currently I am talking to a company about an IVA, i have passed on my details and am awaiting to see if they can help me. The problem i have with selling my house privately is that i am currently separated from my wife with divorce proceedings ongoing, can my ex-wife block the sale of my house? (house in my name only, and property was not the matrimonial home) |
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will I have to move out straight away
