www.iva.co.uk

I have a mortgage of 100k and the property is worth no more than £105K. If I go bankrupt can I continue to pay the mortgage and keep my home (no equity to release). Is it just the unsecured debt thats included in the order as I dont want to lose my home?


Secondly I pay £100 a month into a police pension. I have only been contributing for 2 years but this is my only future investment. Will I be able to keep this up in bankruptcy as Id rather get a second job to pay money into an OR order rather than give this up?

many thanks

You would be able to get someone to buy your beneficial interest in your property, and if the property is in negative equity this is done for a nominal fee of £1 plus solicitors costs, which I think are £211.

You would be able to keep paying into your pension, but you wouldn't be able to make any additional payments. I still pay into mine - the maximum I can pay in that the company will match. Any more than that wouldn't be allowed.

I thought you were in an IVA? Has something changed?

In a dmp at the moment.

Im still ot sure about the answer to the first question.I have litlle if no equity so does that mean my mortgage is not brought into the bankruptcy and continues as normal with my current provider?

Your mortgage has no place in the bankruptcy as it is secured against your property. So yes, you could stay in the property so long as the beneficial interest was dealt with.

The decision as to whether to keep your police pension is entirely at the discretion of the OR who will deal with your case, post bankruptcy, but if I had to put money on it I would say it would be safe so long as you were just paying basic contributions. AVCs would not be permitted.