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beermonster
Starting Member
17 Posts |
 Posted - 09 December 2009 : 18:00:38
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Hi
It looks like I'm going to have to go bankrupt in the New Year. I have cashed in some endowments and offered my creditors 30% of the debt but not heard back yet, I've told them I want a written reply by 31st Dec and said that otherwise I will have to go bankrupt. If they don't all go for it then I will go bankrupt in the new year. We have no equity on the house so we won't lose it and my sister will buy the beneficiary interest. I am worried about the logistics of my bank account. It's with Abbey but I'm not overdrawn with them. All my direct debits come out of that account. Will the account be frozen? If so what do I do about the direct debits and my wages? People have mentioned Barclays and Co-op, we have a CCJ with Co-op so I will have to get the basic Barclays account. Do you open it before you go bankrupt and transfer all the direct debits? Not sure how to do things.I don't want to get behind with my utility bills etc because of the bankruptcy. |
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 09 December 2009 : 18:25:15
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The Abbey account will be frozen but you can always contact them and see if they will transfer your account to a basic account if they have one. You also shouldn't rule out the Co-op as other people who have had debts with the Co-op have been able to open a Cashminder account.
You should open the account as soon as possible and transfer your salary, DDs, etc. over to that account in preparation for declaring BR.
The Co-op are pretty busy so it can take up to 2 weeks to get the details of your account. By the time you have transferred your DDs, salary and with Xmas holidays it could be mid-Jan before everything is set up. |
Edited by - gettingoutofdebt on 09 December 2009 18:25:38 |
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In 2 Deep
Junior Member
United Kingdom
161 Posts |
Posted - 09 December 2009 : 21:11:24
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Hi Beermonster,
Some sound advice given there by gettingoutofdebt.
What worries me about your post is that your come across as being certain that you will not lose your property, and your sister will be able to buy the BI. I don't want too sound alarmist, but I would suggest you seek the advice of a forum expert on this matter - if you have not already done so.
Just because your property is in neg equity, please do not assume the OR will allow you to remain in the property. it really does depend on how much of your income goes toward the payment of the mortgage / secured loans etc....
Please do make sure you seek professional advice before going any further.
Gd luck with your journey.
Treat EVERY Penny as a prisoner. |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 09 December 2009 : 21:15:36
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If your property is in negative equity, regardless of how much your monthly payments are, what is the point of the OR taking it off you as no one is going to get back the full amount of money.
As far as I am aware, as long as it is in negative equity, there should not be a problem with it.
The glimmer gets brighter all the time
Jan
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beermonster
Starting Member
17 Posts |
Posted - 09 December 2009 : 21:17:41
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| Thanks for the advice. Really appreciate it. My husband went bankrupt earlier this year and the OR didn't take the property because we owe money on the mortgage, a secured loan and there are two charging orders on the house. My sister is an insolvency practitioner and is helping us through everything and she seems pretty certain everything will be OK so fingers crossed it will. |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 09 December 2009 : 21:39:41
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I'm sure it will be beermonster.
The glimmer gets brighter all the time
Jan
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In 2 Deep
Junior Member
United Kingdom
161 Posts |
Posted - 09 December 2009 : 21:48:08
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Hi Kalis,
I was under the impression that if more than 40% of your income goes towards your mortgage payments then the OR could refuse you the purchase of BI.
For example: If your mortgage is 1000pm for a 3 bed semi, and you can rent a similar size property for £600pm then the OR could well refuse you the purchase of BI. This will happen because by way of renting you are freeing up another £400 for your IPA.
Maybe an expert can confirm the facts.
quote:
Originally posted by kallis3
If your property is in negative equity, regardless of how much your monthly payments are, what is the point of the OR taking it off you as no one is going to get back the full amount of money.
As far as I am aware, as long as it is in negative equity, there should not be a problem with it.
The glimmer gets brighter all the time
Jan
xx
Treat EVERY Penny as a prisoner. |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 09 December 2009 : 21:56:23
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i was under impression that regional variataions for rental of similar properties would be taken into consideration as well, not just the % of income
regards Richard |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 09 December 2009 : 22:12:22
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So was I Richard and if they don't it's not very fair. I live in the South East and property prices are still high - £800 per month rents you a 1 bed maisonette!
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/
29 IPA payments made, 7 to go - in single figures! |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 09 December 2009 : 22:18:45
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I would also say that you may not be freeing up anything.
By the time the property has been sold, taking into account the negative equity, and what money has to be paid the mortgage company, and the secured loan, any shortfall will be included in the BR and the creditors may be no better off.
The glimmer gets brighter all the time
Jan
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Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 09 December 2009 : 22:59:47
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Hi all
regional variations on rents and house valuations certainly do vary from region to region. They vary from suburb to suburb in some of the larger cities outside London.
London and the south east is in a different environment than the rest of the UK as kallis and skippy have identified. We let out a property in Walton on Thames 20 years agio and the rent was £800 pcm then - and it was a modest property, nothing spectaucualr - that property today will be let out for £1,200 - £1,300 pcm at least
I believe that if the property is negative equity and there is sensible evidence to that effect, then it is of no interest to the OR as it will go knowhere and streee the family in the meantime...I wish you well, and post back with updates, between us all on this site, we may be able to assist. Richard
"There are no problems - only solutions..." |
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chester2005
Average Member
United Kingdom
786 Posts |
Posted - 09 December 2009 : 23:56:48
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good advice has already been given, however there is some truth to the fact that the OR is under no obligation to sell the BI in any property to the person in BR,
if mortgage repayments are seen as too high then he can try the route that if you were in a lower cost rental property then more DI would be available for an IPA and then all creditors will receive something for 3 years,
that said there are restrictions in their attempts of this that they cannot make a secured creditor lose money on a forced sale realisation price and they are not meant to make you homeless to enable an IPA to be sought
in a nutshell you should be OK and its good that you have taken professional advice
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurman)
RevivaUK helped me through it all i can't recommend them enough!! |
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In 2 Deep
Junior Member
United Kingdom
161 Posts |
Posted - 10 December 2009 : 07:54:07
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Well summed up Chester.
There does seem to be a lot of confusion about BI, and the OR approach to a mortgaged property.
As each individuals circumstances vary greatly, it would be prudent to always seek professional assistance on this matter.
Good luck Beermonster, and be sure to post back on your experiences.
quote:
Originally posted by chester2005
good advice has already been given, however there is some truth to the fact that the OR is under no obligation to sell the BI in any property to the person in BR,
if mortgage repayments are seen as too high then he can try the route that if you were in a lower cost rental property then more DI would be available for an IPA and then all creditors will receive something for 3 years,
that said there are restrictions in their attempts of this that they cannot make a secured creditor lose money on a forced sale realisation price and they are not meant to make you homeless to enable an IPA to be sought
in a nutshell you should be OK and its good that you have taken professional advice
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurman)
RevivaUK helped me through it all i can't recommend them enough!!
Treat EVERY Penny as a prisoner. |
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When do you open the basic bank account?
