IPA Payments in BR

[MelanieGiles]

And just to add that a Court is unlikely to grant a possession order over a property where there is no benefit for creditors - ie the beneficial interest is only sufficient to make a contribution to Trustee's fees and disbursements. My personal view on these low equity bankruptcy cases is that the OR is keen to get the property issues dealt with as speedily as possible, so they can close the cases down and cease to act. The bankrupt's spouse is always asked if they wish to acquire the beneficial interest, and given a reasonable amount of time to do so.

The advice given to you above by Catallus is spot on - and you really now perhaps take direct professional advice before entering into this important decision. Most insolvency practitioners will give you an initial short meeting on a face to face basis, and I am sure that there must be one or two operating in your vicinity that could be worth a try just to set your mind at rest.

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]

Hi thanks for your concern but this is the official blurb and it doesn't sound great - it seems to me it is saying no matter what my husband does (he has a great credit record) the house will still be siezed into the hands of the OR - I understand the third party thing but this doesn't mean that its actually going to happen in the eyes of the OR they could decide to sell it anyway - that is what I am really worried about and I know that no one can forsee what is going to happen! I do need to speak to an IP face to face I agree but for the moment I do think that BR according to this is not my option where I have my husband to consider who has done nothing wrong and I need to keep a roof over my baby's head - am so frustrated by it all wish I hadn't gotten into this mess in the first place

Freehold / Leasehold Land or House
As a bankrupt, ownership of any equity that you have personally in any house or other property will pass to the Court. The Court will want to realise this equity for the benefit of your creditors.

This means that either a third party will have to make an offer to the Court to buy out your equity or the Court will force the sale of the property to release the equity. If your husband, wife or children are living with you, it may be possible to put off a sale until the end of the first year of your bankruptcy to give time for other housing arrangements to be made.

What happens if the property is owned jointly with someone else?
If you have a joint mortgage, the asset would be seized regardless of your partner’s financial situation. Unfortunately, there is no way to avoid this forced sale.

What will happen if I have no equity in my property?
The creditors are not interested in the physical bricks and mortar of your house – what they want is the equity that is tied up in it. If your house contains no equity at all, the Official Receiver will still take possession of the house

[scaredkez]

fudge stop panicking, i am in the same position as you i went BR in april and still have the roof over my head the only difference is that my hubby and i both went BR, if your hubby is the joint owner of the house they cannot seize his assets only yours they will have to work out what your equity is in the property, and then will ask if your hubby wants to buy the BI , they will not throw you out on the streets, even if it came to the worst scenario they have upto 3 yrs to dipose of the asset, they are humans just doing a job and as the other have said the will out weigh the costs of the sale of the house as to what they would get in return, it has to be beneficial to them and if it is only £10k that we are talking about i am sure they will not try and seize the house if it is in hubbies name also, take advice as melanie has said just so you feel better, hope you find answers soon
kerri


if there is no equity in your house the OR will have no interest whatsoever in your house
Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[fudge34]

Thanks scaredkez - I know I am panicking, I feel as if there is a big weight over my mind and shoulders and I cannot stop grinding my teeth just feel sick all teh time and yet I know I need to get this sorted. I have put off the creditors because I was doing an IVA this month but I know they are going to come knocking soon so feel as if i should do something quickly. How are you finding BR? is it a relief to get it all done and dusted? what is your experience?

[scaredkez]

fudge it is immense relief, no more calls no more letters, i am starting to live again and be normal, i tried everything possible before i went BR and in all honesty i wished i had done it sooner, we still have the house thing to contend with but i am prepared for that, its bricks and mortar at the end of the day and we are still a family and that is all that matters to me, a loving home can be made anywhere, i do wish you good luck i understand what you are going through and i know you feel it is a huge step but it does mean you get your life back on track, no one knows i am BR if i haven't told them, i am no different, the light is back on in my eyes and i can smile again.

kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[fudge34]

Thanks scaredkez. I am sorry that I rambled on I guess I am trying to find the right thing for me. I think I wil speak to Andrew tomorrow the IP that has been dealing with my IVA. I want to get it clear in my mind before i commit to anything, i have read your blog tonight and I really do commend on what you have done, you have made it easy to understand and I hope that your new house awaits you when all your IPA payments have gone. It is just a life lesson like you say

[Skippy]

Hi Fudge, sorry, I wasn't ignoring your post earlier but we've got a crisis at work (about to put nearly all the major car production line in Europe on stop!) so I couldn't reply.

I think you are doing the right thing talking to Andrew. You need to get things clear in your head so you can make a decision - I don't like to think of you panicking! As Kerri says, BR has given her a new start, the same as it has me. As Melanie and Catullus both say, I really don't think that you are likely to lose your home with such a small amount of equity in it.

Good luck, and please keep posting to let us know how you are getting on, or just for a chat 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/

[fudge34]

Hi Skippy no I know you wouldn't ignore me (although I feel like ignoring me at the moment even I am getting bored of my dilemma!) Just had a chat with husband and he just said relax, why are you getting so stressed these banks make huge profits every year and they were given a chance to have repayments made to the loans. Half of me feels like going through with the IVA and getting the rejection from NR and then saying well I will have to go BR then (almost two fingers!) but then I need to sort this out in a proper mature way. I am going to talk to Andrew, see k his advice and then file for BR asap - I think I will have to wait until I get paid next month to afford it - all my loans etc have come out this month on dd apart from NR who I never had a dd set up with. I will have to make a list of all teh things I need to do and figure it out. In some ways I am looking forward to just not having plastic and having to stick to a proper budget freeing myself of it all! At the moment most of my wages goes on paying almost 700 pounds worth of debt back every month so I have to tell myself that this is going to be a huge drop if my IPA payments are around 185.00 (working on surplus income of 302) every month. I am going to rework my IVA expenditure plan as well as some of it was ridicolous 200 per month for food and 20 per month for clothing including myself and my baby - her last shoes came up to 25 quid a pair from clarkes so will make it more realistic. My husband does have some shares in his name that he has saved will they look into that do you think? obviously the debt is in my name so I am hoping he will come away unscathed. Again THANK YOU and sorry to hear about your day at work

[MelanieGiles]

Fudge

You reproduced some official looking blurb earlier which you have obviously found on a website somewhere, and I have concerns about its accuracy. Can you tell me which website this is taken from so I can check it out please?

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]

Hi Melanie

The link is here - http://www.bankruptcyhelp.org.uk/what_h ... assets.asp hope you can cut and paste that in - I took what it said about equity and assets so you can see what I mean when I said I was worried - the problem with this type of thing reading over the internet it isn't put into context or relating to YOUR specific case so you are right when you say you need to meet the IP face to face as its all very generic information -

[Skippy]

You're sounding much more positive Fudge - I'm glad. I don't think the OR would have any interest in your husband's shares as they are his, and they are only interested in your assets. I didn't declare anything that was Dave's on my BR form, although he did make sure he had the receipt for his beloved telly before I went BR!

I have found there is a fine line between finding the information so you can make an informed choice, and too much knowledge being a dangerous thing! I have been worrying about not declaring my premium bonds and whether I should have told the OR about my pay rise for a few weeks, and I have found all sorts of different information on the web. Thankfully Melanie has now put my mind at rest, the letters are in the post and I will await their replies!

I have got used to these sort of crises at work now Fudge - they happen all to often! I go in expecting a bad day, and if it's not it's a bonus!

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/

[fudge34]

Skippy, I think I had one of those major wobbly blonde moments where I began to doubt everything and then my husband who thinks i am mad to worry about what NR will say (why do I even care?!) put it into perspective for me. I need to be brave and just face this. Its only for three years and even if I was going down the IVA route it will still impact on my credit record for 6 years anyway. I think the hardest thing for me personally will be living within a budget realisign like you said you can't just put odd things on your credit card at the end of a month before pay day that you can't basically get into even more debt. When I started uni (and had never even had a visa card) I remembered walking into a store and being amazed that you could buy things without having to pay for them right there and then - that was over 12 years ago so I have alot of mental readjusting to do!

[MelanieGiles]

You have a really good sensible chap there, Fudge, who is giving you the right sort of support through this. Whilst the experts know that your husband's share of the property is not at risk, I think that you will not believe it until you see it! But trust me it is completely safe from the clutches of creditors, and you have ample time to deal with this matter once the dust has settled.

The very best of luck to you.

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 - you guys really are heros and do a invaluable service - two days ago I was contemplating all sorts and now I finally feel as if I am ready to accept what I knew all along and just get on with it - thanks again and will let you know what happens when I speak to my IP tomorrow he seems like a nice guy too so hopefully I can soon be on the road to getting my finances sorted out once and for all!
a quick question after 3 years when you have paid all the IP stuff off do you need to still declare bankruptcy on any job forms etc? as it is officially over then or is it after 6 years when your credit score is settled?

[Skippy]

I often have those blonde moments Fudge! Dave often asks me what it's like on my planet, and does it get lonely there?!?! We are both lucky - we've got supportive partners who will help us get through this. Saying that, on the day I went to court for my BR Dave was going to make me get out of the car and walk as he'd had enough of me, we were lost and I was trying to navigate (not my stong point, another blonde moment!)!

The bankruptcy will stay on your credit file for 6 years, but as far as I know if you apply for credit(!) and are asked if you have ever been bankrupt you must answer yes even if it is after the 6 years. Hopefully Melanie or one of the experts can clarify that.

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/