rent allowance in bankruptcy

[nursejojo]

hi everyone
just wanted to ask if anyone who has gone bankrupt and had there house taken due to having equity in thier home, what the or allows for rent. I hope that my iva gets accepted, but just one of the things i wanted to know just in case.

[Reviva UK]

Hello Nursejojo

Welcome to the forum

before you can get the advice that you need we need to understand a little more about the level of debt you are in and details about the house.

Mortgage value?
House value?
redemption payments?
monthly payments
are there any second loans etc
do you have disposable income at the end of each month ( excluding loan payments?)

Also at this point why are you looking at bankruptcy.

Regarding the house - if there is equity in a property then you may well loose it unless the "beneficial interest" is purchased by a family member / friend etc. Therefore as soon as we get the above info we could hopefully be of some help to you.

[Adam Davies]

Hi
The OR will allow a reasonable amount to house yourself and your family.Obviously figures will differ throughout the country due to differing housing costs so it is impossible to give a difinitive figure.
Regards

[iva experts]

The rental amount the OR will give is different in each case as each case is based on the individual. However he/she should be reasonable in what rental amount they will allow, I can't imagine them forcing a family of 2 adults & 4 children into a 2 bedroom house etc.

Is there any reason why you think your IVA wont be accepted?

[chris.g]

I understand that rent allowance has to be reasonable and as it is purely individual. I was just wondering though if nursejojo contacted the OR helpline they would be able to give an estimate based on their circumstances? Seems quite feasable and a reasonable request as it would prevent them overpaying on rented property....
xx

[Reviva UK]

Got to say that I have never had a problem with rental prices / costs.

If you need a 3 bed house because of children etc and the going rate in your area for a 3 bed semi is 800 then 800 it is.

Th OR has a feel for what is clearly not appropriate.

Really advise you to find the property that you need ( and like!!!) and get started.

[MelanieGiles]

As Paul and Andy have already mentioned, the Official Receiver will compare the rent you are paying with comparable properties in the local area and confirm that your needs match the rental you are paying. For instance if you were a single person renting a four bedroomed house, that would be deemed to be excessive.