Question

[Jimmy Neutron]

I have a mortgage for £101k and a secured loand for £18k, the house is worth approx £105k, would I lose the house if I was made bankrupt?

 

Can my partner buy my share of the house?

 

Please advise

[loobyloo35]

I am not 100% sure but I think you would as they would use the house as collateral to pay your debts, HOWEVER, that may depend on what equity you have in the house and looking at your mortgage and secured loan, there isnt anything to give them so I could be totally wrong and it would not be worth their while taking the house

 

Someone on here with more knowledge about this field should be able to help you.

[loobyloo35]

Just having a thought, my friend's other half was made bankrupt, they didnt lose the house but he cannot have anything in his name, as you may be aware of that or not, but they have the house but from memory they have an order on the house and if they default then they would take the house.

 

Hope the limited info helps.

[Jimmy Neutron]

Thanks for your reply Loobyloo35.

 

Can anyone else shed any light onto this?

[tonycee]

Bankruptcy - What will happen to my home in bankruptcy?

[Goldlady]

I have a mortgage for £101k and a secured loand for £18k, the house is worth approx £105k, would I lose the house if I was made bankrupt?

 

Can my partner buy my share of the house?

 

Please advise

 

As your secured lending is more than the value of the house it should not even come into the bankruptcy. Chances are your partner can buy your share of the house for £1. Is the £105k based on market value or forced sale value? Because you need to knock 15-20% off the market value to get forced sale value.

 

Best of luck.

[tonycee]

As your secured lending is more than the value of the house it should not even come into the bankruptcy.

 

Of course it will. In order to keep the house, these debts will have to be serviced. How, depends on you and the OR. It should be discussed at length during your interview.

 

Chances are your partner can buy your share of the house for £1.

 

This is possible as explained in the link above.

[Jimmy Neutron]

I have just submitted my defence to the court and I asked about the house situation. They gave me a number for the OR.

 

When I rang them and explained the situ, they confirmed that the house would be in negative equity becasue of 2nd charge on home (secured loan) and they confirmed that my partner would be able to buy my interest for £1 + £211 legals and as long as we keep up the payments on the mortgage and secured loan nothing will happen to the house.

 

They also advised that the mortgage and secured loan do NOT even come under the bankruptcy as they are secured lending.

 

Just have to wait and see what the judge says now, as long as our home was safe that is all I was worried about.

[tonycee]

Jimmy. Im not sure you understand.

 

If you go BR the house is not yours anymore

IT BELONGS TO THE OFFICIAL RECEIVER and they have 3 years to decide what to do with it.

[Jimmy Neutron]

Tonycee,

 

I do understand and the OR has said that if I did go BR then my partner can buy my share of intrest which will equal £0 for £1 from the BR

 

Outstanding shared Mortgage (interest only) = £101k

shared Secured Loan against Home = £18k

Outstanding Total shared secured lending = £119k

 

Home currently valued at £103k so if home was sold for £103k we would still be in negative equity by £16k. If we were forced to sell the house and to knock say 20% off that would make things even worse. There simply is nothing at all in the house to take.

[tonycee]

OK im glad.

Everything that is said IS possible, but the emphasis is on "CAN"

Dont take anything for granted just because thats what you want to happen.

Im 3 months into my BR and still waiting for things to happen.

 

I will leave you to it.

 

Good Luck

[Jimmy Neutron]

Everybody's situation is different my friend

[tonycee]

Everybody's situation is different my friend

 

Jimmy. May i suggest you get some legal advice. Your attitude is very naive. Im afraid you may be in for a bit of a shock.

[Jimmy Neutron]

First of all, I do not have an attitude, everything I have said is based on fact and is also based on a telephone conversation I had this morning with the Insolvancy service, which you provided me with the link. It was also backed up by an OR.

 

At the end of the day Tony we will have to wait and see, yes it may take time.

[gizmo111]

I have just submitted my defence to the court and I asked about the house situation. They gave me a number for the OR

 

What defence?

Are you choosing BR or being forced into it? Can you afford the mortgage and secured loan after BR........ Realistically?

[Jimmy Neutron]

Gizmo,

 

I am being taken into it by a DCA, even though I am making payments via a DMP.

[gizmo111]

Gizmo,

 

I am being taken into it by a DCA, even though I am making payments via a DMP.

 

Have they issued a SD or filed for BR?

[Jimmy Neutron]

Petitioned for BR, SD was served back in July 08.

[gizmo111]

Have you other assets?

What other debts do you have?

Are they aware you have no equity in the house?

How do you feel about being made BR?

[Goldlady]

Is there a deadline for them to issue BR proceedings after issuing a SD? I had a feeling there was but have not managed to find it after intensive googling. July 08 was 7 months ago:confused:

[tonycee]

Is there a deadline for them to issue BR proceedings after issuing a SD?

 

No, paragraph 10

[Jimmy Neutron]

Have you other assets?

What other debts do you have?

Are they aware you have no equity in the house?

How do you feel about being made BR?

 

Other assets = None

Other debts = total of £12k all included in DMP, which is upto date

Are they aware = Yes, after several calls and letters telling them so

How do I feel = All I am concerned about is the house for my missus, our newborn and me.

[gizmo111]

Other assets = None

Other debts = total of £12k all included in DMP, which is upto date

Are they aware = Yes, after several calls and letters telling them so

How do I feel = All I am concerned about is the house for my missus, our newborn and me.

 

Well the advantage for you is all your other debts get wiped out and you make a fresh start, so no DMP to pay, and you will keep the house.

Downside is it seems a shame to go BR for a relatively small debt.

 

Have you got a court hearing date?

 

Congrats on the baby:)

[sequenci]

Jimmy. From the information you have provided it is likely you can keep the property by exercising your right under the low cost transfer scheme as previous discussed within this thread. Just make sure that the OR actions this as soon as you start dealing with them, sometimes you need to make it very clear. Also, OR's are very busy people right now so make sure they work well for you.

 

Who is the DCA by the way?

 

Best wishes,

 

Seq

[Jimmy Neutron]

Jimmy. From the information you have provided it is likely you can keep the property by exercising your right under the low cost transfer scheme as previous discussed within this thread. Just make sure that the OR actions this as soon as you start dealing with them, sometimes you need to make it very clear. Also, OR's are very busy people right now so make sure they work well for you.

 

Who is the DCA by the way?

 

Best wishes,

 

Seq

 

Thanks for your upport guys it means alot!!

 

The DCA is Marlin Europe (Mortimer Clarke) nasty bunch do not listen to anything you say. Court date is Monday 2nd March not looking forward to it at all.