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  • FIRST POST
    Burp
    If you go bankrupt do you lose your house?
    • #1
    • 27th Aug 08, 3:53 PM
    If you go bankrupt do you lose your house? 27th Aug 08 at 3:53 PM
    May seem like a ridiculous question I know... but I honestly have no idea what bankruptcy involves!

    Got a lot of things going thru my head at the mo ... OH has been made redundant and is struggling to get a job (in the engineering industry) we bought our first house in March a mortgage with a loan attached to consolidate our student debt ... a Moregage product by Godiva mortgages ... I'm just concerned if he doesnt get a job soon and we start struggling with repayments that everything will go t*ts up! and the house will be repossesed etc .... we can afford to pay mortgage & loan from just my income but not the other things like gas/elec etc... he's getting the odd bits of temp work at the mo but not a sniff of the money he used to be on!

    I know this is a garbled message but the unkown worries me!

    Burp x
Page 1
  • RichOneday
    • #2
    • 27th Aug 08, 4:05 PM
    • #2
    • 27th Aug 08, 4:05 PM
    In terms of bankruptcy and losing your house it depends whether there is an asset, any equity.

    If there is no equity, you will probably be able to keep it and buy the BI, beneficial interest. If there is significant equity, the Official Receiver is going to want it I'm afraid.

    Outside of bankruptcy, repossession is simply a matter for your lender. However, if they repossess outside bankruptcy any shortfall will still be your liability, in theory at least, whereas in bankruptcy the shortfall will be cleared.
    Gt NW 1/2 Marathon 21/2/2010 (Target=1:22:59) (6:20/mile) 1:22:47 (6:19)
    Blackpool Marathon 11/4/2010 (Target=2:59:59) (6:52/mile)
    Abingdon Marathon 17/10/2010, (Target=2:48:57) (6:27/mile)
    09/10 Race Results : http://www.thepowerof10.info/athletes/profile.aspx?athleteid=103461
    Racing Plans/Results - Post 3844 (page193)
  • Red1708
    • #3
    • 27th Aug 08, 4:06 PM
    • #3
    • 27th Aug 08, 4:06 PM
    Hi Burp

    I'm no expert on property but there are plenty that are who will be along soon to help you. Just wanted to let you know that there are quite a few members of this forum that have managed to keep their house .

    Red
    BSC Member 59 - AD 29th March 2008


  • RichOneday
    • #4
    • 27th Aug 08, 4:11 PM
    • #4
    • 27th Aug 08, 4:11 PM
    But your first steps are to get a Satement Of Affairs knocked together to show your income and expenditure and ring CCCS at the earliest possible. They will put things in perspective for you and go through your income and outgoings.

    At the end of the day, you have to prioritise in roughly the following order:

    Food, Essential Utilities, Mortgage, Secured Lending, Unsecured Lending, Anything Else.

    From what you have outlined I think you need to get on to your lender and ask to make reduced payments for a short period until your joint income improves. They will cooperate much more willingly if forewarned.
    Gt NW 1/2 Marathon 21/2/2010 (Target=1:22:59) (6:20/mile) 1:22:47 (6:19)
    Blackpool Marathon 11/4/2010 (Target=2:59:59) (6:52/mile)
    Abingdon Marathon 17/10/2010, (Target=2:48:57) (6:27/mile)
    09/10 Race Results : http://www.thepowerof10.info/athletes/profile.aspx?athleteid=103461
    Racing Plans/Results - Post 3844 (page193)
  • Burp
    • #5
    • 27th Aug 08, 4:19 PM
    • #5
    • 27th Aug 08, 4:19 PM
    Thank you for the quick replies

    we are paying the mortgage back repayment+interest so might be worth ringing to see if they suggest to switch to interest only or reduce payments ... the mortgage was 100% mortgage ... but done as 95% mortgage with the other 5% rolled into the unsecured loan attached to the mortgage

    other than that are other commitments are just things like food, utitlity bills and my OH has a credit card

    I hope he find a job soon

    Burp x
  • RichOneday
    • #6
    • 27th Aug 08, 4:36 PM
    • #6
    • 27th Aug 08, 4:36 PM
    OK, so if the worst came to the worst in bankruptcy you would be able to keep the house probably as there can't be any equity.

    The key is to make arrangements with your lender, and anybody else you can think of, to get your total outgoings within your current income. Payments can be caught up later if necessary. If making the mortgage interest only does the trick great, if not maybe you need to request half payments for three months.

    The fact is you are tackling this before it becomes a major problem, so bankruptcy should be the last thing on your mind. You don't mention any great debts other than the mortgage.

    Therefore, nobody is going to make you bankrupt and it makes no sense whatsoever for you to do it yourself.

    You've got a short term budgetting problem by the looks of it, which is likely to get back on track sooner or later.

    Good luck.
    Gt NW 1/2 Marathon 21/2/2010 (Target=1:22:59) (6:20/mile) 1:22:47 (6:19)
    Blackpool Marathon 11/4/2010 (Target=2:59:59) (6:52/mile)
    Abingdon Marathon 17/10/2010, (Target=2:48:57) (6:27/mile)
    09/10 Race Results : http://www.thepowerof10.info/athletes/profile.aspx?athleteid=103461
    Racing Plans/Results - Post 3844 (page193)
  • Burp
    • #7
    • 27th Aug 08, 4:46 PM
    • #7
    • 27th Aug 08, 4:46 PM
    Thanks Richoneday

    We do have great debts ... our mortgage @ 116000 and the moregage unsecured loan at 22000 ... the repayments for these are manageable on my income and OH was covering all other payments such as utility bills/council tax/foodbills etc but now things are extremely tight now his income has halved

    I think I should do a SOA ... I shall post it up here when I do one

    Thanks again

    Burp x
  • RichOneday
    • #8
    • 27th Aug 08, 4:55 PM
    • #8
    • 27th Aug 08, 4:55 PM
    OK will have a look when you post SOA.
    Gt NW 1/2 Marathon 21/2/2010 (Target=1:22:59) (6:20/mile) 1:22:47 (6:19)
    Blackpool Marathon 11/4/2010 (Target=2:59:59) (6:52/mile)
    Abingdon Marathon 17/10/2010, (Target=2:48:57) (6:27/mile)
    09/10 Race Results : http://www.thepowerof10.info/athletes/profile.aspx?athleteid=103461
    Racing Plans/Results - Post 3844 (page193)
  • maxmycardagain
    • #9
    • 27th Aug 08, 9:34 PM
    • #9
    • 27th Aug 08, 9:34 PM
    do you WANT to keep it though?.............
    Yarda Yarda Yarda
  • Burp
    Very upset at the moment

    Just rang Godiva and they were very helpful ... they said they were unable to offer a payment holiday because of the type of mortgage so she worked out if paying interest only would be more helpful but the difference was only 70 or something like that ... her best advice was to 'ride the storm'

    to make things worse OH had a 2nd interview for a very good job ... down to him and one other and the other one got it due to 'more experience' so been a very bad day today

    just seem to be sinking into our overdrafts

    Burp x
  • ameratsu
    Chin up Burp - we are in similar straights, my hubby's temping at the moment too, on less than half of what he was earning, we can keep going for a few months but after that we will be stuffed.
    Is your hubby registered with all the engineering recruitment specialists?
    Get him to send his CV in to every agency he can find in your area, it's highly frustrating waiting for the phone to ring though and you have to keep on to them.
    My hubby's an engineer too, unfortunately he's been out of the game for a few years though - he moved into management and is finding job hunting tough.
    All the engineering jobs seem to be for electrical/electronic engineering - what's your hubby's qualification?
  • Burp
    Thanks Ameratsu

    He's qualified in Mechanical Engineering .... and your right ... everything seems to be for elctrical engineering ... but his qualification is more mechanical bias than electrical

    I've been on holiday so have spent every day trawling the jobsites and sending his CV off to jobs posted ... I've registered him with all the local engineering recruitment places and posted his CV on all the websites; Monster, Just engineers, The Engineer ... list goes on ... there's 14 websites I go on in total every day!

    Most recruitment agents have been pretty useless... they thank you for your CV and tell you they'll keep an eye out ... but then you hear nothing from them ... so we ring them up for an update and there reply is 'still looking' or that 'nothing suitable has come up yet'

    My OH is similar to yours ... he's been out of the direct Engineering side of it for nearly 3 years ... so he's classed as rusty I suppose

    My job isn't ideal as you don't get bonuses or pay rise or overtime - stinks being a Teacher

    sorry for whinging but been looking at our individual bank accounts and our joint accounts and its not looking good

    Burp x
  • Bohemian Raspberry
    Hi Burp

    I was just wondering how you were getting along as myself and OH have found ourselves in a similar position, with a mortgage of 89k (95%) and an unsecured loan of 16k and godiva are being less than helpful, even with the cccs helping us

    *br*
  • Tobiwan Kenobi
    I had a recruitment business, which I have had to fold - There are very few vacancies and a lot of firms competing for them. Times are very tough! I am looking at jobs that are completely different to my experience, predominantly in the public sector as they have more security. It may be worth doing likewise?

    We have equity in our property but we're determined to be able to keep it (how likely that will be I'll know after OR meeting next week). We're trying to stay positive about it and will negotiate hard!
  • Lensman
    Burp.

    I am an engineer too. The Production type. I had to move from Plymouth to Hampshire to continue my career. Can you widen his choices if you move? Your job is very transferrable.

    Just a thought.

    I know the world looks bleak right now. But you need to prepare for the worst. And that is bankruptcy and losing your home. Knowledge is power here - so get yourself an A level in it by surfing this board. Read some diaries. By preparing for the worst, you will be ready to grab the best if the opportunity arises.

    And give your OH a kick up the !!!! from me. It should be him not you trawling the job sites. Possibly you should be sorting the finances the best you can. But not dong the legwork for the job too.....
  • Bassplayer
    Hi Burp

    If it helps, I stopped paying my mortgage to Wave last August or September and I've spoken to them regularly and they seem keen NOT to reposses. I guess it's happening a lot and it's not in their interests to do so.

    Similarly, I stopped paying my second charge to First Plus at same time, and here we are in mid-March and I have just rec'd a letter from their lawyers telling me that they are about to start proceedings to repossess. This could take weeks, if not months.

    Many, many people are in your position so try not to worry too much. You could talk to your lender I'm sure they will give you a fair hearing, especially if you go to them with proposals for reduced repayments...they are going to want to see your income and expenditure figs though.

    Good luck with it and do let us know how it goes

    BP
  • peachyprice
    This is an old thread resurrected from August, i don't think Burp is around anymore.
    Accept your past without regret, handle your present with confidence and face your future without fear
  • thepikey
    Hi due to gambling problems my credit card bills have rocketed, I've now faced my problems and seem to be ok but my bills are too high.
    I've never missed a mortgage payment ever, can the credit card companies force me tosell my home? :-(
  • alastairq
    Hi due to gambling problems my credit card bills have rocketed, I've now faced my problems and seem to be ok but my bills are too high.
    I've never missed a mortgage payment ever, can the credit card companies force me tosell my home? :-(
    Originally posted by thepikey

    Not directly, no.

    Credit card debts are unsecured.

    Therefore, the only ways an unsecured creditor can secure repayment of debts is via the Court, for a CCJ [with subsequent enforcement of CCJ if the Court allows..that means Bailiffs], or, attachment-of-earnings.......or, a creditor can go to Court to seek to place a Charging Order on your property. This converts unsecured debt into secured debt.

    Then the creditor can go back to Court to seek to realise the debt by the sale of the property..providing there is sufficient equity to meet the needs of the First Charge [usually, a mortgage] plus any other Charges noted.

    A defence against this action would be, if children still lived in the property, or someone living there had a particular need to remain in that property.

    Then the Court could refuse to allow the property to be sold to realise the Charge....although that Charge would remain, and become payable once the property actually is disposed of.

    Another method open to a creditor is to seek a Bankruptcy Petition.

    In that case, if there was any equity in the property, the Official Receiver would seek to realise that portion of the equity to which the Bankrupt held an interest.

    This might be achieved by another party purchasing the ORs interest...which would allow the BAnkrupt to retain the property.

    Or, the OR could place a Charge on the property, which would be payable [with interest] once the property was eventually sold.

    Or, if the amount was significant [over 10k, so I believe?]...in terms of the BR's share of equity,and this share could not be bought by another....then the House would be sold.

    First line of defence is to watch for any creditor trying to turn their debt into a secured debt. [Using the Court]

    A personal Bankruptcy Petition, whose date pre-dates any attempt to obtain a Charge in Court, means the debt [all of them] are included in the Bankruptcy....probably one of the only times when it is better to petition BAnkruptcy sooner rather than later? The BR pre-empts any attempts to create secured debt.

    Of course, if there is actually equity in the property, it is then important to find the funds to purchase the OR's interest in that property.
    No, I don't think all other drivers are idiots......but some are determined to change my mind.......
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