In IVA but considering bankruptcy

[NotSoBrightSpark]

Thank you very much for your reply Andy.

That has confirmed what I thought really.

Would you have any idea on how the creditors with charging orders on the property would view the situation should we become bankrupt and continue to live in the property,wether it's for 12 months or possibly longer.

I believe that the creditors with charging orders will get their money when the house is sold.That is the reason for the charging order,an unsecured debt basically becomes secured.In other words their money is guaranteed.

How do you think that these particular creditors would view this.We would be bankrupt yet they wouldn't get their slice of the cake so to speak.Is it conceivable that they couldt try for a force of sale? We really wouldn't want to go through bankruptcy,staying in the property,possibly purchasing the beneficial interest and then be forced to sell at a later date due to creditors enforcing a sale.

This I think will have a major bearing on our eventual decision as to the right path forward.

I hope I'm making some sense.[:p]

[MelanieGiles]

Creditors with charging orders will likely sit tight until the property is eventually sold, but may want you to contribute towards the ongoint interest charged in the meantime.

[chris.g]

We had 1 charging order and they wanted a contribution from the offset. [:(]
We got a letter from the Co. dealing with it soon after br stating that they were going to advise their client, Mint/RBS, to apply for a force of sale, this was less than 3mths after the charge was applied.
All I would say, nsbs, is assume that they are going to request a contribution when deciding on staying for 12mths or renting straight away, work out how much it is going to cost to stay another 12mths in a property which may sold as opposed to renting......

[NotSoBrightSpark]

Thank you again Chris and thanks everyone for their help and support.

We have some serious thinking to do.No doubt I'll have a few more questions too [:)]

Contacting our IP next week.I'll keep everyone informed of the situation.

And thanks again [;)]

[NotSoBrightSpark]

Well I've just thought of another question should we go bankrupt.

Our current fixed rate mortgage ends late this year.If we choose bankruptcy,then how,as a bankrupt do we negotiate another mortgage deal with our current lender? Would this be possible? Or is it a definite no-no? Perhaps it's a question only our current mortgage lender could answer,but the conversation telling them we're going bankrupt may be a bit tricky [:(]

This is a question which I think needs addressing because obviously if we can't negotiate a further mortgage then we may as start and look to rent now (well at least after my son has finished his school exams in June)

The timing of things is going to be crucial,therefore,I need to preplan as much as I possibly can.

I hope nobody minds me asking so many questions [?]

[chris.g]

Tough one!! I'm assuming that the current mortgage supplier will not carry out a c/check as you are already with them, the halifax didn't when we changed product with them. However, if and when you file br may have an effect on them lending the rate etc.
There are mortgage advisors who post on here so maybe they can step in and answer your question. Maybe you should create a new thread as it may be missed...
Good luck
xx

[MelanieGiles]

Absolutely you must discuss this with your current provider, as it may be the deciding factor in your choice of options. Andrew Graveson is away socialising this weekend, but Tony Parsons may be able to offer some assistance if he is on-line. I have seen Tony get mortgages in extremely difficult circumstances, so he could be worth a call.

[NotSoBrightSpark]

Thanks again Chris.

This is our second deal with our current provider and I'm fairly sure that when we went from our first to second deal,they just sent us out some paperwork that basically said 'Which deal do you want?' though I can't remember exactly.We were not in the IVA then though but we still did obviously have the large debts.

Also to bear in mind is that I reckon even if we did get another deal then it would probably be around £100-£150 a month more.

So many ifs,buts and maybes [B)]

[NotSoBrightSpark]

Thanks once again Melanie.

I didn't see your post before I posted my previous message.

I understand I need to discuss this with my current provider,I'm sure it won't be a pleasant conversation but I'll just have to bite the bullet
[xx(]

[NotSoBrightSpark]

Well with regards to our house I bit the bullet and spoke to our mortgage company and came out with it and asked them 'What happens if we go bankrupt?' . The answer which may also be of use to others in the same boat was 'when your current mortgage deal runs out you'll just go onto variable rate' .They also said we wouldn't be able to negotiate a different mortgage product with them,understandable really.
Not a nice question to ask but it needed asking.The answer was not as bad as I'd feared.Though obviously,it could be more than what we are paying at the moment.

Note - I wasn't sure wether to put this another thread or not but thought it may be better here where all our details are at hand.Apologies if a new thread was needed [:I]

[chris.g]

It's nice to see the thread flowing on, NSBS.
When you go onto variable how will this effect you financially? Are you going to be able to make the payments as well as your secured lending? If your secured lending is like what we had that was variable and kept going up, apart from when the base rate came down, then it took them around 2-3 mths to reduce payments!!

[Reviva UK]

Hi there I will continue on the Br site

[NotSoBrightSpark]

Well after leaving a message on the Reviva UK website only this morning I have just received a telephone call from Paul Johns with regards to bankruptcy.

I must say that already we are feeling much better about our situation and instead of looking back we are now looking forward.We received clear,friendly,knowledgeable and prompt advice.It's amazing what one simple phone call to an expert can do.I only wish I'd spoken to Paul earlier.

If anybody has any questions about bankruptcy I wouldn't hesitate to contact Reviva.

Thanks once more
NSBS [;)]

[chris.g]

[:)][:)] Great news NSBS, keep us informed of how you get on, xx

[NotSoBrightSpark]

Thanks for all your help too Chris [:)][;)]

Even though it was only a conversation and advice,it's incredible how much better we feel already and how much more confident we are about the road ahead.

[:)]