| Author |
 Topic  |
|
nikjak
Starting Member
12 Posts |
 Posted - 03 January 2010 : 18:38:54
|
| Hi I’m 5 months into personal bankruptcy and paying an IPO which was based on my salary at the time of the bankruptcy. I was told I would have to take a pay cut of 30% at work at which I understandably kicked up a fuss and after a few days of moaning and trying to compromise I had to take the cut, ever since I have been the subjected to a barrage of bullying and ill treatment at work by the boss and have been ignored by colleagues resulting in me having to go on sick leave through stress and anxiety. I have approached a solicitor regarding the work issue but I was wondering if you knew what would happen to my home now that I can’t afford my mortgage, IPO or my 2 secured loans? I don’t think I can return to work under the circumstances. |
|
|
debtinfo
forum expert
2826 Posts |
Posted - 03 January 2010 : 18:49:52
|
| If your salary has reduced tell the OR and they will reduce or stop the IPO/IPA. |
 |
|
|
nikjak
Starting Member
12 Posts |
Posted - 03 January 2010 : 18:54:21
|
| I have already done that, I was wondering what would happen now that i can't afford the mortgage, loans etc.. I know i will probably lose my home but how long does the process take. I have a 6yr old child and i'm desperately worried. |
|
|
|
Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 03 January 2010 : 18:56:27
|
hi nikjak,
Debtinfo has already said what will happen to your IPO/IPA - that is some consolation.
However, what you have described with your employer is scandalous and I feel for you.
Are you in a Trade Union? I am sure they would be of great assistance to you.Bullying in the workplace is a big problem and I hope that you get it resolved in your favour.
You mention that you have approached a solicitor about your employer - is this on a no win, no fee basis?
I am sure they will have some good advice assuming they are an empoyment specialist - just be careful on the terms of engagement! Sometimes they are not wholly upfront on the fee structure
Good luck, Richard
"Life is generally something that happens elsewhere" (Alan Bennett - author and hero of mine!!) |
Edited by - Housing on 03 January 2010 18:57:17 |
|
|
|
nikjak
Starting Member
12 Posts |
Posted - 03 January 2010 : 19:01:13
|
Thanks Richard,
No not in a union unfortunately!
It is no win no fee but not actually spoken to them yet because of the christmas break, have e-mailed them and i'm expecting a reply maybe tomorrow. I will keep a close eye on the fee structure, thanks |
|
|
|
Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 03 January 2010 : 19:14:16
|
Hi nikjak,
Pity about the Trade Union
On the fee structure it is always a high percentage - normally 25 - 30% if you win - no problem with that - look for a fee if you lose too!! They often have a clause to say there is a fee even if they do not win - heads they win and tails they win!!
There is nothing illegal in that - but I question the ethics!
Good luck, Richard
"Life is generally something that happens elsewhere" (Alan Bennett - author and hero of mine!!) |
Edited by - Housing on 03 January 2010 19:18:18 |
|
|
|
Daniel Griffiths
Junior Member
United Kingdom
268 Posts |
Posted - 03 January 2010 : 20:06:30
|
| Check your house insurance policy and motor policy to see if you have legal expense insurance, most policies have. It is most likley your house policy which may cover you for employment issues, as motor policies normally only cover for uninsured losses in an accident on the road, a call to your insurance company may be worth while |
|
|
|
Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 03 January 2010 : 21:21:03
|
Hi again,
Daniel makes a good point - I have looked at my insurance for our home and it has £50,000 cover for legal services which includes, amongst other things a section that is worded as below:
Employment disputes such as unfair dismissal or discrimination on the grounds of sex, race or disability.
Now, I am not an insurance expert and therefore suggest you follow Daniels advice and test the water with the above clause (only if it has such a clause that is!)
Again, I wish you good luck, I dislike bullies and have seen so much over the years in the workplace.
Let us know how you get on, Richard
"Life is generally something that happens elsewhere" (Alan Bennett - author and hero of mine!!) |
|
|
|
nikjak
Starting Member
12 Posts |
Posted - 03 January 2010 : 21:30:58
|
| Yes, I'll have a look thanks. |
|
|
|
nikjak
Starting Member
12 Posts |
Posted - 04 January 2010 : 14:03:40
|
| No unfortunately not covered on my home insurance, apparently it was an optional extra which i didn't take. |
|
|
|
nikjak
Starting Member
12 Posts |
Posted - 04 January 2010 : 14:06:43
|
| Still no answer to my original question though, how long does the process of my home being repossessed take, what happens about the secured loans??? please |
|
|
|
John
New Member
United Kingdom
73 Posts |
Posted - 04 January 2010 : 14:24:58
|
Hi
you should inform the OR if you have not already done so and the IPO will be revised or stopped.
That's not a problem it happens all the time when income reduces or expenditure increases.
Unfortunately if you can no longer afford the mortgage or secured loan repayments inevitably once you are a sufficient number of months in arrears one of the lenders will no doubt begin repossession proceedings. The OR has no involvement in this.
After 3 missed payments it will likely take a further 6 or 9 months. The shortfall of the sale price against your mortgage and secured loans should be included in your bankruptcy. Explain to the OR and get their take on it all. They are there to help. They cannot advise but they can inform you whether the mortgage shortfall would be included in the bankruptcy which would hopefully put your mind at rest to a certain degree.
John White
Independent Debt Consultant
Specialising in Bankruptcy |
Edited by - John on 04 January 2010 14:28:17 |
|
|
|
nikjak
Starting Member
12 Posts |
Posted - 04 January 2010 : 14:35:07
|
| Thanks John. |
|
|
|
Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 04 January 2010 : 14:49:05
|
Hi nikjak,
That is a shame about your insurance policy.
Again, be mindful of what the solicitor who is talking to you about your employment claim - the no win no fee is always an attractive option, but as I said, some, (not all) have a fee to be levied if the case is won or lost!! (I wish I had pursued a career as a solicitor after my law studies, many years ago!)
As to a time frame, that is difficult to say without some more information.
Are you in arrears with the mortgage? (First charge) Are you in arrears with the second charge?
If so to either of the above, have they started legal action as yet?
If yes, where are they in the process?
Have you any children of school age? If so, you are well advised to approach the homeless persons unit at the local council to say you are threatened with homelessness.
I advise you to go to the offices with all of your paperwork (once you have an appointment) and see what they can do for you and your family. Do not deal with the council by phone only - be assertive and get seen and assessed by a HPO.
If the first charge lender is taking action then they will instruct an agent (may be a solicitor, but probably not - a legal exec is more likely). They will represent your lender in the county court.
I advise you (when it gets to that stage) to attend court yourself. It is not formal or scary - you will be able to get free advice from the duty solicitor on the day (again maybe CAB worker, Shelter or the local council housing officer).
They will go with you into the judges chambers. nothing to worry about - no wigs or gowns these days - a normal office with the judge in normal dress and your lenders advisor and you in front of him/her.
You will be given every opportunity to keep your home if it is possible (again, this all depends on where you are with any arrears at the moment). If the home can be retained and you allowed to stay there on terms, then that is what is likely. That having been said, if there are large arrears already - a bit more of a battle.
The judge will not want to see you evicted if it is at all possible. She/he will have more understanding and empathy for you than for the claimant!!
This is election year - the government is not wanting to see the repossession figures rise again!!
In essence, you are many months from getting your home taken away - even if that is the scenario.
At the hearing with the judge, you will be given the opportunity to make an offer to repay the mortgage plus a sum towards the arrears - if you cannot do that, then the judge will make a SPO - giving you up to 2 months to meet the terms.
If you cannot meet the terms, then the SPO will convert to an application for a warrant of execution (eviction). I emphasise that even if that happens, a period of about 5 months will have elapsed.
Back to the homeless persons officer - make that initial contact NOW and they may be able to assist you. There are 5 "priority need" categories to consider - the two that are likely to apply to you are:
Do you have children
Do you have ill health
If yes to the above, then you may be "picked up" by the council. That could involve:
Temporary housing (B&B maybe)
A tenancy in the private sector (Assured shorthold tenancy)
A tenancy with a local RSL (housing association)
A tenancy with the council (less likely - due to supply and demand)
I could go on, but do not have your full situation as yet - post back if necessary.
I hope this has been of some assistance to you.
Be assertive and think positive! Richard
"Life is generally something that happens elsewhere" (Alan Bennett - author and hero of mine!!) |
Edited by - Housing on 04 January 2010 14:54:24 |
|
|
|
nikjak
Starting Member
12 Posts |
Posted - 04 January 2010 : 14:57:47
|
Thanks Richard.
My Mortgage was due today I have sent £100 instead of the £465 as this is all I can afford and I have wrote to them regarding my situation. So not actually missed any payments yet. I had cancelled the dd's on both my secured loans but one has been paid anyway! so probably just the one to worry about this month. I have also wrote to both loan company's regarding my situation. |
|
|
|
nikjak
Starting Member
12 Posts |
Posted - 04 January 2010 : 15:00:17
|
| PS I have a 6yr old child and i'm currently on sick leave due to Stress and anxiety. |
|
|
|
Topic |
|
Hi I’m 5 months into personal bankruptcy
