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Flush
Starting Member
6 Posts |
 Posted - 22 April 2009 : 11:46:21
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First off, hello everyone, hope you can help me with some queries re BR.
Our situation is I am in an IVA since last November. My wife had 1 Debtor so could not enter and IVA. Her Debt was £15K on a cc card.
My IVA income and expenditure was calculated, leaving £100 per month for my wife to pay a DMP. However, her creditor has reduced the interest charged but it is still accounting for nearly all the DMP payment, leaving us with no chance of ever clearing the Debt. We have today been contacted by a collection agency and been informed she is still liable for the balance of an overdraft on a current account which was included in my IVA. Something like £2k.
This is the last straw really. We have nothing left to offer. The IVA has left us with just enough to live and put food on the table for the kids and ourselves. We always felt a bit of an obligation to pay our debts back, but just cant manage now.
I wish to continue my IVA, however we are thinking about declaring her bankrupt. We know nothing of the process so am looking for some pointers really.
We have no assets, and are in considerable negative equity.
Many thanks for any help you can offer.
Flush. |
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chester2005
Average Member
United Kingdom
786 Posts |
Posted - 22 April 2009 : 12:23:24
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Firstly welcome to the forum
If you have no assets and your DI is less than £50 then a DRO may be available to you, speak to the CAB for more advice
If you are barely coping with the IVA you may be better off with being BR,
Your DI after BR may leave you more money than now as the OR only takes 50% - 70% over £99
Either way it is something you need to consider more and maybe take some advice
Also if you want to declare BR your IVA would need to have failed,
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurman)
Life's too short!!! |
Edited by - chester2005 on 22 April 2009 12:24:05 |
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Flush
Starting Member
6 Posts |
Posted - 22 April 2009 : 14:07:44
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Thanks for the advise, however I want to continue my IVA. I was wondering what would happen if my wife declares BR.
How would we keep the house if we did ? Also I have no idea what a DRO is. |
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chester2005
Average Member
United Kingdom
786 Posts |
Posted - 22 April 2009 : 15:35:19
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Ok a DRO is debt relief order designed for people with debts less than £15000 and little DI and no assets.
If you want to keep up the IVA and just sort out your wifes affairs then BR or a DRO may be suitable.
I'm not sure a DRO is viable if your wife is a joint owner of the house.
BR is Possible though, in which case if the property is in neg equity the OR would offer you buy your wifes Beneficial Interest in the house for £1 and as long as the mortgage is paid you will be able to stay in the house
Be aware that any joint debts between you would become your liability when she becomes BR
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurman)
Life's too short!!! |
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Flush
Starting Member
6 Posts |
Posted - 22 April 2009 : 16:05:43
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Dave,
Thanks for the advise. Her Debts are 17k. 15.5k in her name, the balance is the residual amount of our joint overdraft which was left after my IVA.
So does the OR keep the half stake in the house indefinitely ? |
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chester2005
Average Member
United Kingdom
786 Posts |
Posted - 22 April 2009 : 16:28:07
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If you don't buy her BI (or someone else) then the OR has 12 months to decide what to do with it ie. appoint a trustee, make a charge on the property.
After he has decided what to do he then has 3 yrs to implement his decision.
If you are in neg equity he will offer you her BI for £1. If you want to keep the house buy the BI and thats it as far as the ORs dealing with the house goes.
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurman)
Life's too short!!! |
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Flush
Starting Member
6 Posts |
Posted - 24 April 2009 : 13:31:12
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Thanks for your help Dave... really appreciated.
So could I buy her BI for £1 ? |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 24 April 2009 : 14:25:28
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You can't do a DRO if you own property, and I think that joint ownership would count as owning it!
She wouldn't be able to do it if the debts are over £15,000 which it looks as though they are.
If you went BR then the BI would cost £1, but there are court costs of £211 to pay on top of that.
The glimmer gets brighter all the time
Jan
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chester2005
Average Member
United Kingdom
786 Posts |
Posted - 24 April 2009 : 14:27:56
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Glad to help
Yes if the mortgage is in joint names you should be ofered her BI for £1 and you also have to pay the legal fees, which are either £211 or £475ish
£211 is if you are buying each others BIs so it may be the more expensive cost but i'm not sure.
If she can buy her own BI back for £1 then there should be no need for the extra fees which are supposed to be for extra legal costs, (no name or legal owner change)
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurman)
Life's too short!!! |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 24 April 2009 : 15:55:38
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To buy the BI in a property costs £1 + £211 costs. If you are buying the BI of 2 people as far as I'm aware it's £1 + £1 + £211 costs.
Where did the fee of £475 come from Dave?
Tomorrow is a mystery, yesterday is history, today is the present, a gift to make the most of.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
22 IPA payments made, 14 to go - on the home straight! |
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chester2005
Average Member
United Kingdom
786 Posts |
Posted - 24 April 2009 : 16:47:49
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From another posting when an expert mentioned the increased cost if there is only one person involved,(something to do with legal stuff) i didn't know about it until then i thought it was just £211 plus the £1s
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurman)
Life's too short!!! |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 24 April 2009 : 22:24:57
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I remember something about that, but I've never heard of that happening before or since - it seems a bit of a rip off to me!
Tomorrow is a mystery, yesterday is history, today is the present, a gift to make the most of.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
22 IPA payments made, 14 to go - on the home straight! |
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rumbletumble
Starting Member
United Kingdom
17 Posts |
Posted - 26 April 2009 : 13:38:18
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We had a joint mortgage in which the property was in negative equity, we bought it back from the OR for £1 each plus the fee of £211. No 3rd party was used we bought it ourselves, the Deed Of Assignment came back and we are now on the Land Registry as Tenents in Common until discharge then once discharged we can apply through the LR to have that changed back to Joint.
James. |
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Flush
Starting Member
6 Posts |
Posted - 27 April 2009 : 08:35:28
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Thanks for the help guys, So in effect if I bought the BI for the wife would I be the sole owner of the property ?
How would that affect the joint mortgage ? |
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chester2005
Average Member
United Kingdom
786 Posts |
Posted - 27 April 2009 : 08:41:12
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The owner of the BI is the owner of the equity in the property
The joint mortgage means that you are both liable for the debt, The mortgage is a secured loan so i don't think the mortgage co will be bothered as long as it is paid
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurman)
Life's too short!!! |
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After some BR advise please - I know nothing!
