Author Topic: Our House and Bankruptcy  (Read 5571 times)

monty

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Our House and Bankruptcy
« on: May 10, 2011, 01:23:35 PM »
Hi everybody ,
 
Can anybody tell me in simply terms what happens to your home if you go bankrupt ?
 
I know the old , £1   fees is now no longer , I est my home to have around  + £2500 after the loan is paid and selling costs are taken out. ( would I be allowed to cost out to workout my BI ? )
 
The House is owned by myself and my wife , this would give me BI of £1250.
 
Could my wife or other family member buy the BI back for this amount   cost ? or what time scale would apply ?
 
The house was valued in Feb at £125000, as hope to sell , but not moving, So we need another way forward ASAP.
 
Thanks Monty

James Falla

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Re: Our House and Bankruptcy
« Reply #1 on: May 16, 2011, 03:37:49 PM »
Hi there Monty
 
As you rightly say, in January this year the guidelines regarding how ORs should deal with equity in property were changed. If you go bankrupt and there is equity, there will be no problem for a thrid party such as a family member to by this back from the receiver. 
 
The rules now simply say that there will not be any deals. In order to by back the equity, an amount must be paid which is equal to the value of your equity. Given that this sum can be raised, the prcess could be done very swiftly after you declare yourself bankrupt. You would simply need to discuss it with your OR.
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michelle2011

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Re: Our House and Bankruptcy
« Reply #2 on: May 25, 2011, 06:20:53 PM »
Thanks! I know that a lot of people will be looking into those changes this year.

James Falla

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Re: Our House and Bankruptcy
« Reply #3 on: May 26, 2011, 04:50:07 PM »
On first look the new rules seem to have made the process a bit harsher as it has taken away the OR's ability to accept a settlement offer to buy back beneficial interest. However, on the other hand at least the process is now clear and everyone knows where they stand which is good news.
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james_s_p

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Re: Our House and Bankruptcy
« Reply #4 on: Aug 24, 2013, 05:02:01 PM »
 James Falla:


Recently BR and my property value circa 175,000, mortgage of £120,300 and equity loan of 30%. I estimate the BI therefore around £2 - £3k, of which my father is more than willing to pay. However having had my interview with the OR, I was told to wait to hear from a third party who oversees payments (including IPA and NI tax code payback), but am conscious house prices may be rising. Is there anything I should do to speed up? Also, is it sufficient to provide informal estate agent market appraisals, or a chartered surveyors formal valuation? Both fine as am in the industry, albeit would be helpful to know.


Thank you in advance




James Falla

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Re: Our House and Bankruptcy
« Reply #5 on: Sep 05, 2013, 10:52:37 AM »
Hi James
 
Sorry for the delay. I do not always have time to post replies on this forum immediately. I have answered your question in your other post :) If you have further questions please do not hesitate to ask.
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russelanthony

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Re: Our House and Bankruptcy
« Reply #6 on: Nov 13, 2013, 09:07:40 AM »
Yes people want the changes in the bankruptcy field and its related issues.