expert advice needed - long, sorry!

[flashingblade]

Right - this is gonna be long. Its about my mam & dad - we are a family of debtors!

Anyway...

They bought a caravan for around 20k, but were paying it monthly, and the place managed the lettings and payments. They hoped the lettings would pay for the caravan.
After a year, it turned out the caravan was costing way more than they thought, so had to give it up. Anyway the company took my parents to court for the payments, even though they got the caravan back. My parents didnt have any assetts, so the court put £13k of the debt onto a charge on their mortgaged property. Should the house be sold, they would get their £13k back. Though the caravan was in my dads name only, the court made my mam sign the charge too cos the house is in joint names.
Anyway, the company havent been satisfied with this, and have hounded my dad for money. He offered to pay them £100 a month but they wouldnt have it. The bailiffs turned up a couple of months ago, and my mam told them all the stuff in the house was hers, which it is, so they couldnt take it. Now theyve been back today and repossessed my dads 02 reg citroen.

Dad has other debts, and a motorbike on HP, which he has 3yrs left to pay. My mam is already in a debt management plan. She will never give up the house - she'd rather die.

If my dad went bankrupt, would the charge for the caravan be removed from the house? Any advice from anyone. They really dont want to do an IVA.

They are in big trouble. Id be grateful if anyone can help.

[Adam Davies]

Hi
Bankruptcy would mean that the house would be sold if there was any equity in the property.
Your dads share of the equity would be used to repay his debts AFTER the secured loans/charges were paid.
You really need to get your dad to ask the court for form N245 and make an AFFORDABLE offer of repayment. If agreed by the judge then the bailiff action would be suspended
Regards

[flashingblade]

Thanks andy. There is no equity in the property.

Does my dad just ring up the court and ask for that form, and fill out, send it back, im assuming there will be a hearing to decide if the judge agrees.

Trouble is, my dad is working for an agency because he cant get full time employment, so work is hit and miss some weeks.

[Adam Davies]

Hi
Yes, just ring the court.
Bankruptcy will not take away the charge unless the house is surrendered, then all the shortfall will be included.
Regards

[Michael Peoples]

Bear in mind that any charge is only against your father's share of the equity as he was the debtor. This in effect means that your mother is entitled to the first 13k equity and 50% of anything over and above that. I realise that there is no equity at the moment but the property should be protected even if it increases a little in value.

I am wondering if there is another debt that the bailiffs have been instructed for as normally if there is charge the bank will either wait until the property is sold, take a monthly payment or apply for possession. It may be worth getting your father's credit file to see if anything else is listed.

[flashingblade]

Thanks Andy & Michael.