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finally got a letter from CAB, they said they have got specialist advice and advise us to wait for our house to be repossessed and then sold before we petition for bankruptcy. They say the reason for this is: if the house is sold AFTER the bankrupcty any mortgage shortfall could not then go into the bankruptcy. This means therefore that we in for the long haul and there is no end in sight at the moment to the stress and sleepless nights!! The CAB said if we get any court papers relating to our other debts, to take them in and they will help us make token payments to keep them off our backs till be get the funds for bankruptcy together and the house is sold!! I wonder how long this will take? I mean, Northern Rock will take the house back but then they have a legal fight on their hands with Picture to get the 2nd charge removed BEFORE it can even be sold!!!!!!!!!!! God, I am sooo stressed about all this. Picture even sent me a letter today saying the interest rate is going up and my payments are going up! I am not even paying them anything and have not for 3 months! HAHA, I have to laugh or I'll cry!!!!!!!!!!!!!

I would get a second opinion on this. I have a nagging feeling CAB are advising you on outdated information. I know this is the last thing you need to hear but you need to get the fuller picture from an expert at the chalkface NOW rather than a well meaning advisor who might be looking at a previous case study. Surely if the creditor is INCLUDED in the BR petition, the losses crystalise WITHIN the term of the BR, though an exact figure cannot be known until the property sale.

I don't know a great deal about these things as I didn't have any property, but I agree with Andy. I'm sure I have read elsewhere that you don't need to wait for the house to be reposessed. Hopefully Melanie will be along soon to advise you.

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/

hi jane have to agree with Andy on this one as long as you put these creditors down on your BR petition they will be dealt with, what i think the CAB are suggesting is if you omit them on the form, once they have been named on your petition and BR has been granted then once the house is disposed of the remaining balance turns into unsecured borrowings and is dealt with the rest of your assets therefor meaning they will not get anything.
i would seek alternate advice, i dealt with a debt advisor at the CAB and although very good i found some of his advice was out of date.

hope you can get this sorted soon.
kerri

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

You are BOTH going to go for BR aren't you ? How much is the mortgage again and the secured loan (from Picture) and what is the property worth ?

yes, we are both going to petition, and we will have the money in a couple of week, hopefully. The house is worth £116,500, and we owe: Together mortgage with N Rock £113,500 and Picture £35,000!

Just don't know which way to turn at the moment, Funnily enough, last weekend I was looking on the Insolvency website and found my husband's brother's name as bankrupt! We didn't even know, and had not seen it in the local paper, anyway we went to talk to him and coincidentally, his resulted from a house he owned 16 YEARS AGO, it was repossesed and the shortfall was owed, the mortgage company found him last year and wanted £40,000 off him so he had no option but to go bankrupt. Strange, that his story is similar to ours in a way! and his advice was to wait it out until the house is sold, to be sure that all our debts are included, but I just don't know what to do now, what if we did go bankrupt and found the Picture debt is not included until afterwards and we are chased again later on? It worries me as one nasty woman from Picture told me that bankruptcy DOES NOT cover secured debt and I would still be liable to pay it even when bankrupt!!!!

Jane

If you go to www.myvesta.org.uk you can talk online with an insolvency advisor who will give you up to minute advise, live. They always try to get you into IVA but once they find that BR is the only option they will advise you regarding your assets.
Then you could put this to bed once and for all. I believe the BR rules have changed in recent years. Some of the advisors in the CAB are retired ex financial tupe people and may not be using the latest info.

Good luck, I know you are stressed out

LILY

I believe that angels breathe and love will live on and never leave. I cherish all you gave me everyday.

jane can i just ask about your together mortgage in that value of £113,500 does that include the unsecured part of your together mortgage also
kerri

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

I am sure the reason CAB are telling you do wait is precisely because of cases like your brother-in-laws. They will have come across many cases of people being pursued for shortfalls from the last housing downturn - but these are against people who did not go BR at the same time. I am sure an expert will be along soon to tell you the situation of secured lending shortfalls that are realised after you have declared BR.

yes, the Together mortgage is made up of £98,000 secured and about £15,500 unsecured. We have/had a buyer for £116,250 (after a lot of haggling and messing about) but the sale cannot go ahead as Picture refuse to lift this 2nd charge! I have told the estate agent and also the fact that we cannot pay their £2000 fee, (which they wanted upfront) but I have heard nothing apart from a letter from Picture saying they refuse to allow the sale and that we can afford to stay there if we gave the cars up! (then we would not be able to get to work??)

I fail to see how an estate agent can ask you for an upfront fee. Surely they can only be paid once the house transaction has been completed, the mortgage company has been paid and you or your creditors have been paid?

I think you need to get this checked out. I also have a strange feeling in my bones - an expert will tell if I am wrong - the reason why Picture won't lift the charge is because their money is secured on your property and the funds from the sale of your property is insufficient to cover their £35k.

Like Andy says, I think it best you seek alternative guidence regarding this.

Sue

I'm sure it's the case that Picture will have wanted you to stay put and to relegate all unsecured creditor debts in favour of the mortgage and the Picture Loan. As for the estate agents, they probably think if they do not get the money first they will not get it at all. When the house is repossessed by NR they should try to get the best price they can - obviously enough to cover the mortgage you owe them but there will certainly be a shortfall to Picture. How long ago did you take the £35K loan out with picture ? They must have valued your house at such and such to give a 125% loan to value - do you know what their valuation was ? Was it fairly recently ?

Jane

Can I ask if their is a particular reason why you dont seem to want to take Melanie's advice. As Andy says, you need advice from somebody at the chalkface now and this is Melanie's day to day job. The CAB offer a very worthwhile and free of charge service but they cannot be experts in every situation that arises.

I cant help thinking that the end to the stress and sleepless nights could be so much sooner if you were to go BR sooner.

Said with the best intentions

Dave

i agree bear, but i think jane has had too much advice which is now confusing her,and also frightening her into a position she doesn't know where she stands
kerri


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

Its not that we do not WANT to take advice given on here, its just that we are too SCARED to! What if its wrong and we go bankrupt hoping for a clean slate, fresh start and then we are still pursued for the shortfall of the secured debt, (as we have been told we will be) My life is in such a mess now already and we are so scared of making things worse!!!!!!!! I just could not cope if that happened!!!!!!