| Author |
 Topic  |
|
|
pimpkin
Starting Member
United Kingdom
2 Posts |
 Posted - 14 January 2010 : 14:36:23
|
Hi i know there are tons of people in the same boat so looking for some guidance. I have racked up 45k worth of debt during my divorce a couple of years ago which has become unmanageable. I have 4 children 2 disabled, i work part time but majority of my income is benefits. I know they cant touch most of this but im worried about going bankrupt although the best option but im scared i will be forced to sell the house.
My house is in ex husbands name although a court agreement ruled the equity is mine. Ive had it up for sale for £169k with no viewings for 6 months so im guessing its worth less. My mortgage is 133k. Ive heard about my ex husband could buy out my beneficial interest bbut has anyone a clue how much a receiver would want for it?
I have rang every debt line and they tell me different things so doesnt ook good
hope someone can put a light at the end of the tunnel for me x |
|
|
Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 14 January 2010 : 15:11:35
|
Hi Pimpkin
sorry to read about your circumstances, you are definatly not alone
before giving any suggestions, the house is jointly owned ? who pays the mortgage ? are you up together with the mortgage payments ?
In relation to your house, hopefully through whatever process you go down, you may ahve a chance of keeping the house as long as someone can keep the mortgage payments going for you, if not make contcat with "housing" who posts on here he will give some sound help for you and the family.
The house has approx 36K equity, yes this may be reduced due to valuation of property, (it should be based on a quick sale valuation and current market conditions), so as you have typed all equity is yours, alas the Official Receiver will try to claim most of the profit of sale.
Your EX may be able to negotiate the purchase of the beneficial interest (the equity in the property) but I am not aware if the OR has a set sliding scale for the cost to purchase.
Just too confuse you further (sorry) On what you have typed so far Is BR the right option ?, without knowing your full personal circumstances and from what you have typed I would encourage you to speak to paul @ reviva, because BR may not be the only option !
I and others on this forum can talk you through the BR procedure but your circumstances are slightly different re the divorce and ownership of property so would encourage you to discuss with any of the experts (links to the left)
good luck in the path ahead
regards Richard |
 |
|
|
Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 14 January 2010 : 16:03:25
|
Hi
If the divorce settlement gives you all the equity then if you were to petition for bankruptcy all of the equity would belong to the Official Receiver and they will claim all of it.
They would however, because you have children, allow you to remain in the house for up to 12 months until you found somewhere else to live.
If your ex purchased the beneficial interest then it would be equivalent to the equity at market value - so £30 - £36k.
Possibly the best solution would be to reduce the price of the house, and with the released equity it should be possible to negotiate a final settlement with your £45k of creditors for significantly less, leaving you with some funds to set up in a new home. You would also avoid bankruptcy as well!
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
Real People ..... Real Debt Solutions |
|
|
|
pimpkin
Starting Member
United Kingdom
2 Posts |
Posted - 14 January 2010 : 17:26:19
|
thank you both for your help. The mortgage is actually in my ex husbands name. He pays £400 of the mortgage each month to help and I pay £380. It has been this way for 2 years.
Thank you once again ad i will explore every avenue to avoid bankruptcy |
|
|
|
debtinfo
forum expert
2826 Posts |
Posted - 14 January 2010 : 19:15:05
|
| some good advice from paul there, this is something that is best worked out without going bankrupt |
|
|
|
chester2005
Average Member
United Kingdom
786 Posts |
Posted - 14 January 2010 : 20:45:14
|
As Paul has said, if you can sell the house at a reduced price you can then use the released equity to settlt your debts without BR.
the thing to consider is that full and final settlements below 100% are generally accepted better when offered through a company rather than an individual and usually at a lower rate.
The money saved usually more than covers any fees involved.
I would consider talking to Paul at RevivaUK he has handled many cases like yours and is highly trusted and recommended.
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!! |
|
|
|
Steve Thatcher
New Member
United Kingdom
70 Posts |
Posted - 15 January 2010 : 13:09:25
|
I agree with the above, it will by far the best option to see if you can sell first. Also canvas your creditors as to whether they would accept a full and final settlement from any realised proceeds. If they will not (and belive it or not I have known them run down a guaranteed 33P/£ this was as against 12p/£ via bankruptcy)
If they will great, if they will not then if you go bankrupt your property will vest in the OR. He will take steps to realise the equity and you will have up to 12 months to find somewhere else to live.
With the money that you have been paying on the mortgage you can easily rent.
Also you could fail to pay mortgage and save for a rental deposit.
Your house will be sold one way or the other and any money realised will go to creditors, as it would if you sold it. By doing it this way the creditors get less. That would have been their choice.
Any arrears will be secured and so whilst they would build up if you didn't pay they will get paid anyway.
Does anyone see a flaw in this alternative?
There could be issues with DI on a statement of affairs, but as most of the income you have is benefits, the OR shouldnt even look at you.
Steve Thatcher
|
|
|
|
Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 15 January 2010 : 13:26:31
|
Hi pimpkin,
I have read all the threads and can see nothing by way of solution that is any different.
It is worth speaking to one of the insolvency experts - I am happy to try to assist on the "housing" issues.
Come back as necessary with more information and we can all have another look.
Richard
"Life is generally something that happens elsewhere" (Alan Bennett - author and hero of mine!!) |
|
|
|
Daniel Griffiths
Junior Member
United Kingdom
268 Posts |
Posted - 15 January 2010 : 15:45:28
|
| If you have had the house up for sale with no viewings for 6 months that tells me the valuation is far too high. Before you do anything you need a correct valuation of your home I think the time has come for another agent to arrive on the scene as a starting point. You may have much less equity than you think |
|
|
|
Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 15 January 2010 : 15:51:06
|
Hi
Daniel makes a good point.
The market is rising. Dependent upon where you are, depends on the movement.
Seek 3 valiations from small independent Estate Agents in the area - not one of the corporates!!
Also do not tell them you are seeking their advice as you are going BR - they will not attend if they cannot see a potential instruction!!
Say you are thinking of relocating for a job and want a quick sale. Also look on Richtmove to get a feel for the market on completions to see what is being achieved locally.
Good luck, Richard
"Life is generally something that happens elsewhere" (Alan Bennett - author and hero of mine!!) |
Edited by - Housing on 15 January 2010 15:52:07 |
|
|
|
Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 16 January 2010 : 23:19:09
|
I wouldn't recommend discussing the equity / settlement with creditors before the house is sold. If creditors realise that you are selling and there is equity they are likely to pursue a charging order and thus eliminate your chance of avoiding bankruptcy / getting set up elsewhere.
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
Real People ..... Real Debt Solutions |
|
|
|
RHB
Senior Member
1159 Posts |
Posted - 17 January 2010 : 08:17:49
|
| The flaw withh Steve's argument about building up arrears is that her ex gets chased for the debt & has a black mark on his credit file!!! |
|
|
| |
Topic |
|
44k debt but scared of losing home any help please
