How does this excactly work? Does it secure remaining in the home Been reading your blog Swans girl. I am embarking on BR. House on the market anyway. I hope to be able to use lump sum pension next year , after BR ends to buy small home. My partner still with me but no financial ties together. Maximum £10000 equity but realistically none in todays market. I have been told that if I continue paying mortgage then I can remain.I would prefer to remain until it sells ( this might be a year anyway) as no point going into rented for a year with all the hassle of storing furniture etc and then having to move again in 12 mths. If partner takes over Beneficial Interest would he then be liable for any shorftfall in negative equity
In bankruptcy, your interest in the property will vest in the Trustee who will want to realise it for the benefit of your creditors. If there is no or little equity, it is possible that the Trustee will accept an offer from your partner - or a friend of family member to acquire your interest, thus removing it from the bankruptcy estate entirely. But do beware that the Trustee has three years in which to do this, and could decide to sit on the property in the meantime until it sells to see if they get a better deal.
So long as you continue to pay the mortgage in the meantime, you will not have to vacate the property, but after one year the Trustee has the right to commence possession proceedings in the event that the property has not sold or he has been unable to sell your interest.
The acquisitnion of the beneficial interest does not make your partner liable for any resultant shortfall - and if there is a shortfall this would be captured under the bankruptcy in any case as an additional creditor.
Thanks. This is well explained but I don't get it. What are the benefits of doing this?
I want to sell and move on, at the latest next year, in any event. I would not hope to wait several years ( as some might)on the off chance that the market improves again. If I do stay for another 12 months then I do intend to pay the mortgage so they won't repossess .
Don't forget that if you are bankrupt you will find it very difficult to buy and possibly difficult to rent as well.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Your difficulty in selling and moving on is that you will find it hard to purchase another property post bankruptcy and in any event where will you get the deposit from?
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
I am waitng 12 mths and I will then be dischargered, then will use my lpension/ump sum to go halves on a small property with a partner. He is not involved with me and BR financially and we are now not separating after all. The hope is a cash buy but if my name is on the property with no mortage will this affect the 3yr payment plan
The problem that you may have is that the OR could treat the pension lump sum as income and state that it ought to be captured under any IPA or IPO you are obliged to pay.
I would not gamble with your pension monies - why not seek a legal opinion from a solicitor experienced in personal insolvency matters so you know exactly how this asset/income is likely to be treated. I would hate you to be disappointed and have money you have set aside for retirement grabbed in this manner, but from the OR's perspective the needs of your creditors will be paramount.
Yes - seek independent advice from a good IP on this.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
Dont know who to ask next. I went to a local IP who was recommended who said without doubt BR was the route in order to protect my pension, as it would definateley be taken under an IVA I now have the added worry of being chased for negative equity. I had always planned that the house would pay for any outstanding debt. I know loads of sols but not necesarily Insolvency experts. I was going to submit papers in to local court tomorrow but am now really worried about this
Why don't you ring one of the experts on here? They can advise you.
You could give Paul Johns from Reviva a call. He's a BR specialist and will give you some free advice.
You can find his details under the experts link on the left hand side of the page.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
This is a matter for a solicitor Jan - even I would not like to give detailed advice on this point without looking deeply into the rules and caselaw surrounding what is classed as income.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
John has replied to a question/post on BR site and suggested that I seek expert advice. Problem was I wanted to get on with this tomorrow. I was so relieved once I had made the decision Now I am full of worries and doubts again.
I agree with John and Melanie. You do need to seek expert advice re your position with your pension.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
