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amanda.b
Junior Member
171 Posts |
 Posted - 15 April 2008 : 23:08:37
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Hi, I would like to ask...... My mortgage repayments got to £1350.pm, But I only took home £1300. I split with my bf. So in Nov 2007 I sold my house to my boss for 150k, so he would rent it back to me for £700.pm. So I could keep a roof over me & my kids heads as I could not afford a deposit etc etc for somewhere else. The house was valued at the time of 180k. I owed 153k on mortgage and secured loan. So I had to sell my car to pay the legal costa and the shortfall of the money to the lenders. I am nowlooking to go BR. Will this be a problem because i sold my house?? Thank you
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 16 April 2008 : 09:24:47
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Hi Amanda,
This could well be seen as a transaction at an undervalue by your trustee in Bankruptcy.
The discount from your mortgage payments to the current rental will go some way towards the reasons for this, but there is still a substantial undervalue balance.
You mention you split from your partner was the property jointly owned or in your name only?
What levels of unsecured debt have you got?
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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melanie_giles
Senior Member
1191 Posts |
Posted - 17 April 2008 : 22:19:26
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I don't agree that there is an argument for discounting the saving in mortage payments by replacement with a lower rental. The fact is that the property was sold for £30k less than the market value, and if this was done at a time that you had debts you could not service - ie you were insolvent, there are definate grounds for a challenge by the Trustee for restoration.
Could you confirm what your debt position was at the time of the transfer?
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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AlanO
Junior Member
United Kingdom
259 Posts |
Posted - 17 April 2008 : 23:37:03
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Hi Amanada,
As Melanie says there could well be grounds for restoration - However on a practical basis bearing in mind the quick sale and rent back a 15%ish discount could be deemed acceptable and also the current market conditions may not enable a better return for the Trustee.
I would suggest providing an expert with detailed information so they can deal specifically with any potential issues
It is quite likely that you may well have an extended bankruptcy period because of these actions
All the best
www.debtdr.co.uk |
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amanda.b
Junior Member
171 Posts |
Posted - 19 April 2008 : 01:12:22
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| I have been struggling to pay my debts since Feb 2007. I had Mortgage arears in May and I borrowed the money to pay this the day before i got taken to court to start the repo order. The i got behind again and was going to court on the 18 Nov for the repo to start again. I just could no longer manage hardly any bills, let alone the debts. I felt that I had to act quickly before we were homeless. I really felt that more important than anything. Thanks for your help. I shall ring Melanie |
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AlanO
Junior Member
United Kingdom
259 Posts |
Posted - 20 April 2008 : 18:33:20
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Hi Amanda,
Glad to hear you are contacting an expert - Melanie will provide sound advice
All the best Alan
www.debtdr.co.uk |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 20 April 2008 : 23:24:31
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An excellent choice. Melanie and her team will give you the right advice.
take care
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
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Will BR be a problem because i sold my house??
