house value

[rachel33]

It's been a while since I have been on the forum as a lot has happened over the last few months, we have moved into a council house (which I have to say is lovely, we have been v lucky!) I need some advice, just when I thought the stress was starting to subside here it comes again. Our house was repossd voluntary and now the house is for sale and the advertised asking price is £9K less then the house was valued at in January, I assume this is to increase the chance of a quick sale - bargain whoever gets it! my question is that as the asking price is lower, this amount is quite close to the outstanding mortgage amount, can anyone advise what happens if it sells for less than the mortgage figure, will the NR want the balance? I think I already know the answer don't I but I thought that we were all sorted and then this happens, to be debt free and then feel like its starting again. I'm really quite devastated this is happening all over again.

Thanks everyone, and sorry for not keeping in touch!

Rachel

[Adam Davies]

Rachel
Just remind us all,did you petition for bankruptcy ?

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[rachel33]

sorry Andy I forgot to mention, yes I was declared BR in June and my Husband is in an IVA
Rachel

[Adam Davies]

Hi
Well 50% of any shortfall[assuming you are both liable for the mortgage] will be included in your bankruptcy,was a clause factored into your husbands IVA to allow for his 50% ?
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[rachel33]

thanks for the reply Andy, that is very useful, I didn't realise that about the BR - you learn everyday! not sure about husbands IVA I will look into that.
Thankyou

Rachel

[MelanieGiles]

Just to correct that you will both be liable for the full shortfall and not 50% each - under the principle of joint and several liability.

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

[Adam Davies]

Hi Melanie
So Rachels shortfall will be written off in bankruptcy but her partner will still be liable for the shortfall in full ?
If so,could this now unsecured debt become part of his IVA ?
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[MelanieGiles]

Only if the other creditors agree to include it, and importantly that the mortgage company agree to join into the IVA. Rachel's partner will probably have to make additional contributions, so that this does not disturb his dividend, and a formal variation of terms is most likely.

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

[rachel33]

sorry I'm abit confused now, so does this now become unsecured? how does that happen? sorry for the questions just want to make sure I know whats happening if there is a shortfall
Thanks
Rachel

[Adam Davies]

Hi
Any shortfall of the mortgage redemption from your house sale will become unsecured[as there is no house left to secure it on]Your partner will be liable for this shortfall and will have to make arramgements to repay this,hopefully through his IVA.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[rachel33]

Thanks Andy, If my husbands IVA payments have to increase we really would be struggling, do you think we should then consider BR for him to?
Rachel

[Adam Davies]

Hi
If the mortgage company do not agree a reasonable and affordable repayment plan then yes bankruptcy would make sense.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[rachel33]

Thankyou Andy,
It's the not knowing isn't it, I'm hoping there won't be a shortfall but you just don't know.
Thanks again
Rachel