We have serious debts including credit cards

[angelc]

Hi Angelc
Why would you HAVE to sell it if bankrupt ? Only the OR can advise on this as it will be their decision. A third party may well be able to buy the beneficial interest for as little as a pound plus costs from the OR.
Do you feel that you can afford 56% of your income on housing going forward ? are you on interest only mortgage ?
Regards

Hi Andy

Spent ages compiling a message and the system seems to have ignored my comments so I'll have to start again!

Sorry to be hijacking your thread caroledc but we do seem to have a similar problem - see my thread "in the process of applying for an IVA".

We have a mortgage of £122,000 (repayment + interest) and a secured loan of £65,000 (total (£187,000). Current value £170,000 - £175,000. IP has estimated a shortfall of £30,000 for a quick sale inlcuding costs, etc to be added to the IVA. This would create another creditor and increase our debt from £73,000 to £103,000 which doesn't seem right - that's when we started looking at BR option and were told by DFD that we would still have to sell the property.

Payments on these 2 secured loans total £1650 which we can afford. Only problem we have is the unsecured debt. We have £180 per month to offer to creditors, after expenses in line, with CCCS guidelines. We have written to both secured lenders asking them to reduce payments as this would seem to be a better option all round.

If they don't agree, we will consider bankruptcy if it means we don't have to leave the house.

[angelc]

Hi Angelc
Why would you HAVE to sell it if bankrupt ? Only the OR can advise on this as it will be their decision. A third party may well be able to buy the beneficial interest for as little as a pound plus costs from the OR.
Do you feel that you can afford 56% of your income on housing going forward ? are you on interest only mortgage ?
Regards

Forgot to ask what you mean by a third party buying the beneficial interest?

[jane.l]

be very careful that you will be allowed to sell the house in this situation, we weren't, our secured loan company refused to lift their charge as they were not getting all the money back, you would have to see how amenable they are to this happening

[angelc]

be very careful that you will be allowed to sell the house in this situation, we weren't, our secured loan company refused to lift their charge as they were not getting all the money back, you would have to see how amenable they are to this happening

I must admit, that was my first thought. I can't see why they would agree!

[jane.l]

ours wouldn't.

we had the IVA company writing to them, saying they could make them see sense, then the solictors/estate agents wrote to them, but they would not budge, so we just left the house and then went bankrupt

[kallis3]

The beneficial interest would come into play with you being in negative equity.

It means that a friend or relative can buy the interest in the house from the Official Receiver for £1 plus costs of £211. This takes the house out of the BR and as long as you can maintain the mortgage and secured loan, then your house is safe.

[Max]

Is that right Jan? How the blazes does that work? I tnought receivers obtain a market as opposed to a forced value. Am I being thick or what? David

[Skippy]

Jan is right David. If a person goes BR a third party can buy their beneficial in the property. If the property is in negative equity the BI can be bought for £211 (£1 + fees). If there is equity the third party can make an offer to the OR to buy the BI.

[Max]

One learns something every day!

[Adam Davies]

Hi
A point to take into account is the cost each month of servicing the mortgage and secured loan. The official receiver may prefer the house sold and cheaper rented obtained so that more money each month is available for a IPA/IPO
Regards

[angelc]

Thanks for the explanation. I haven't come across that before - something else to investigate!

[David Mond]

Please Caroledc and Angelc - speak to an IP as previously suggested and all your queries specific to your own set of circumstances will be taken into account to get the most appropriate advice.

Good luck to both of you.

[angelc]

Hi David

Thanks. Have already disucssed this with my IP. Just wanted to check that what I was being told was correct.

[caroledc]

Hi David

Thanks. Have already disucssed this with my IP. Just wanted to check that what I was being told was correct.

How do I know that I am getting the best advice? It seems there are conflicting stories. How much do the IPs charge and how much will the whole process cost?

[kallis3]

If you use any of the firms who post regularly on here, the advice is trustworthy.

The fees vary from IP to IP, again, the companies on here do not charge extortionate fees. These costs are taken from your monthly payments and are agreed by the crediors. You do not pay any extra on top of your agreed payment.