BR - Legal Fees

[fudge34]

Hi All
Sorry for not posting for a little while have been trying to sort my head out regarding BR! have now decided to go down this route rather than a remortgage for 125% it seems to me better to get this debt written off (or at least managed) than to take out more debt which might prevent me from moving house in 5 years time and my mortgage is joint so there is husband to consider. I wonder if anyone has sold the BI in their house to a partner / family friend etc? am wondering how much the legal fees cost and whether the mortgage company was sympathetic. I know you have to get your lenders approval - we have NR as our lender for our mgt the one that has turned down my IVA - we have never skipped a mortgage payment and have always paid on time so hoping they will allow my husband to take on the mortgage in his name. Will they look into his wages again and will we have to reapply for a new mortgage? Also is there anyway I can stop him being blacklisted along side me - it is only my debt and he is credit worthy can I inform, or should I inform, the major credit checkers, Experien etc that he has nothing to do with my debt. It's likely that he is going to have to take out a small loan to buy me out of my BI so want to make sure he is OK credit wise.
Thanks x

[MelanieGiles]

Hi Fudge

If Northern Rock won't remortgage your husband there are plenty of other companies who will. And he will have up to 12 months to find the money. Costs are likely to be in the region of about £500.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[fudge34]

Thanks Melanie knew you would know! do I have to tell NR now or does the OR sort all of that business out? I would prefer my husband to buy me out asap as the interest rates / equity of the house will go up within a year I am presuming that at the end of the 6 years when my credit record is OK again I can then have my name put back onto the mortgage deeds am I correct in this

[Soulgrowth]

Hi Fudge

We seem to be at the same point in proceedings! I don't have a partner but am wondering whether some kind of similar option might be possible for me, perhaps a family member buying my part of the property? At what stage would this usually be carried out?

I wonder how 'helpful' ORs or IPs are in cases of bankruptcy in their attempts to find 'solutions' rather than just condeming the accused? I believe that Melanie sometimes acts as an IP in such cases, if I was appointed someone like Melanie to sort out my affairs in bankruptcy I would be over the moon!

There is some kind of sense of relief in the prospect of handing over to someone else to sort it all out now, especially having struggled with the monster on my own for so many years

Debbie

[MelanieGiles]

Fudge - The OR will inform Northern Rock of your bankruptcy, and then your husband can make an application as soon as he is able. However, if he needs your income and name to be on the mortgage this cannot be done until you receive your discharge in one years time.

Debbie - I generally find the OR very helpful, but depending upon the level of equity you have in your property, if it is more than £10,000 you will end up having a private sector IP acting for you. This person will be either nominated by your creditors, or be appointed from the OR's rota of local IPs - so you have no choice over the matter.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[fudge34]

Can't we just nominate you as our OR Melanie?
I am sure you have enough time : ) one question would the OR take the equity from the day I was made BR or one year later down the road? if its one year down the road then obviously the equity would go up vastly in a year -

[Soulgrowth]

Here, here Fudge ... as if Melanie hasn't enough to do!!

Sadly, there is about £60,000 equity in the property

Debbie

[MelanieGiles]

I would love to be able to act for you Fudge, but sadly the Official Receiver will be appointed automatically! They are very decent people, and will treat you with empathy and dignity - the other posters who have already gone through this procedure can largely vouch for this!

You will be allowed a period of one year to either raise the money to buy out the beneficial interest or make alternative living arrangements. After this time the interests of your creditors become paramount, and it is likely at that stage possession proceedings will be commenced by the Trustee.

You are correct that the equity could increase over this period, so make sure your timing is correct if you are intending to find someone able to buy the interest. And don't forget that you need to continue to pay your mortgage, or else your mortgage company will have the ability to repossess first.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[shazbot]

hi im shazbot a newbie to this site in some scary trouble with money and don't really know which way to turn looking on the site for advice and info been in touch with the cccs who advised bancruptcy (DID I SPELL THAT RIGHT) got an appointment with an adviser at the c. a. b in a couple of days for a second opinion what i want to ask is if a person is part of a couple can the individual go bancrupt or can we only do it has a couple. And if we/i go bancrupt do we need to pay the mortgage until it is sold or do we carry on paying the mortgage even if its sold its all soooo confusing especially for a first timer .

[fudge34]

Hi Melanie
Sorry I am confused - If I go into BR in my situation - my husband has a good credit record (although am slightly concerned that we live at the sasme address and don't wnat him to be linked to me) after a year the OR offers a third party (in this case my husband) to buy out the BI - that is taken from that year so this time next year in effect.

So the house what it is worth will be taken from Aug 2008. At this time NR will be notified of my BR and then my husband has to make a new mortgage application to get the mortgage transferred over to his name? He needs my income to pay for half of the mortgage anyway so what happens there in a year's time. Can't we make the OR an offer of payment for my BI when I first get made BR and go from this year? If my husband has to buy out my BI can't I just sign over the house to him now before I go BR? or would this be seen as stripping away my assets before being made BR?

After being discharged for a year would I then be able to put my name back on the mortgage or would I have to wait for 6 years until my credit record had recovered itself?

[aguise]

Hi Shazbot and welcome
You can go bankrupt individually.
You will get more answers if you start a new post.

Ang

Please visit my blog at http://aguise.blogs.iva.co.uk/

[MelanieGiles]

If you can raise the money at that time yes, but if you are going to be party to an application for mortgage funding I feel that this will be difficult whilst you are still bankrupt. Take specific advice from a mortgage broker with experience of these types of case.

You cannot sign your interest to your husband as the OR will just apply to have this overturned and you will probably end up with a BRO which will delay your discharge. You can be party to a mortgage again as soon as you receive your discharge.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk