at a loss as to the best option

[julian.m]

My niece and her partner have a joint mortgage and unsecured loan (part of the mortgage deal) with Northern Rock

Her partner has struggled with increasing debt (credit cards etc) of nearly £30,000 and is was considering an IVA, but now thinks that bankruptcy is a better option? (Considering the comments of this forum and the fact that under an IVA his equity would reassessed in the 4th year)

As the loan is unsecured the total equity in the property may be about as much as £20,000 (Mortgage £100k loan £12k - current valuation of property about £120k). My questions are as follows

If he decides on bankruptcy will Northern Rock allow his partner to continue with the mortgage and loan repayments providing they are up to date?
Will she be able to purchase his 50% equity in the property at a reasonable total cost.

Will Northern Rock foreclose on their mortgage or implement further costs

Sorry it’s a little drawn out, but we are at a loss as to the best option. (Incidentally they both work full time his Gross income being £25/30k per year with hers at £15k)

Many thanks in advance for any advice

Julian

[size5]

If you default on the unsecured portion of your debt to Northern Rock, they are highly likely to look at a charging order as soon as possible.

[julian.m]

Hi

Many thanks for your time in replying.

Can they obtain a charging order even if a payment is not missed?

One party is considering bankruptcy but the other would continue to pay both the mortagage and the un-secured loan to Northern Rock

Thanks again

Julian Mason

[MelanieGiles]

So long as the Northern Rock lending continues to be serviced by your neice, this does not give them grounds to take any action against you.

And she will be allowed the opportunity to make an offer for his share of the equity, based upon an independent professional valuation.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[julian.m]

Many thanks for your reply Melanie

This really is a first class site for people in financial difficulties so thanks again for your valuable time

That is good new that Northern Rock can not act providing all payments are continued and get up to date by the other partner

If we thought an IVA was the best option we would have no hesitation in contacting you to make the proposal. At the moment and from advice recieved, it looks like bankruptcy or a debt management plan but still unsure

Best regards

Julian Mason

[MelanieGiles]

Hi Julian

You really are doing the right thing by taking time to expore the options available. Time invested now in considering all angles, will be valuable in the future, and I wish you luck in your search.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[MelanieGiles]

Hi Julian

You really are doing the right thing by taking time to expore the options available. Time invested now in considering all angles, will be valuable in the future, and I wish you luck in your search.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[julian.m]

Thanks once again Melanie

Your time and free expertise is much appreciated on this site

We'll keep working on it!

Best regards

Julian Mason

[Skippy]

Good luck to your niece and her partner whatever they decide to do. They are lucky to have you to help them x

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/