Can a house sale be forced?

louiser123

hi to all,

i just read the post about the house sale, we were declared bankrupt in 2000, and our equity was set at 12,000 we were allowed to pay this back on a monthly basis at 250 per month till it was clear, im not sure if that would be an option for you, but it is worth talking to your trustee. we have been very lucky with ours and even now 7 years on we have some troubles ie dcas who purchased our debt writing for a full settlement, i just contacted our trustee and he said send on the letters i will sort it out, not heard anything since.
after the equity is bought though you do need to get a solicitor to get caution cleared from the land register or it could cause problems if you decided to sell in the future.

7 years since br, 5 as br 2 discharged and only just in may been able to obtain credit to repair cr file. still got 4 years till default is off as these were added after by company who bought the debt , can i get these cleared ??

HEADACHE

Hi Louiser,just read your post and I really sympathise having to BR for 5 years,that must have been hell.I'll aim for an installment plan as im happy to repay debt,I just dont want to lose my house and have disruption.
Contact your company who purchased debt,write a letter requesting removal as the debt has been satisfied.They'll then put an 'S" to mark it satisfied on the file.

tigerfeet2006

Louiser will just get a link for you.

This is the credit file clean up sticky t the top of the front page.

http://forums.moneysavingexpert.com/showthread.html?t=677875

Welcome to the forum

loopylu36

Hi all,


I have just read this thread with great interest as my OH and I are currently considering b/r. We are in a DMP but I lost my job at the end of April and so now we are really struggling with this. I am hoping to become a childminder, but the salary will be no where near what I used to earn and it will be another 3-6 months before I am earning at all. In the meantime, we can only afford nominal repayments and our debt totals well over £100k :eek: Even when I am earning, it is going to take us forever to repay what we owe, and that's only if creditors stop interest but 4 months into DMP most are still charging it :mad: I am not sure that I have the strength to battle through a DMP for the next 20 plus years (I'll be nearly 60 by then!) so bankruptcy is beginning to look like more of an option. The only thing stopping us at the moment is the thought of losing the house, so I wonder if I could just clarify a couple of points made in earlier posts?

1. The equity in the house is less than £20K and that's before OR costs and legal costs, so similar situation to Headache. However, if the OR did insist on selling the house, am I right in thinking that if we can come up with that amount of equity, we get to keep the house? My dad would be able to lend us this money to keep our house.

2. The second problem is that we own a second house which in the normal course of events would be a nice problem as there is again some equity (again not more than £20K) BUT, my parents live in this house as they are not in a position to buy their own as they had to sell their own house cos of mis-sold pension mortgage in the 80's and had no way to repay the interest only mortgage :rolleyes: so they would be homeless if this house had to be sold. HOWEVER, the equity in this house belongs to my mum as she put up the 15% deposit for the BTL mortgage. We have a Declaration of Trust to prove this and she could provide bank statements also that this money came from her account. So on that basis how would the OR view this "asset".

Sorry to have hicjacked your thread Headache, but as the situations are similar, it seemed silly to post a new one.

Thanks for any help

Loopy x

tigerfeet2006

If you can get your Dad to buy the BI then yes the house would be yours and you get to keep it.

With the 2nd problem your Mum only owns 15% of the equity in this house. You own 85% so you would have to find that to save the house.

It might be worth having a few valuations done just to see exactly where you stand with equity as house prices are falling.

Also please phone one of the debt charities and go through your options with them. You need to do this as if you do go BR then the judge will ask if you have taken professional advice and can delay your petition untill you have.

loopylu36

Thanks for the advice Tigerfeet.

I may not have made it clear that the other property is mortgaged to 85%, so presumably it's only any equity over 15% less o/s mortgage that I would have to "buy"?

Debt_Monkey_3

Headache, looking at your situation from the otherside, are you discharged and where would the money come from?

If you want to purchase the equity, negotiate a lot and you could get a decent discount. Go and get some estate agent valuations and send them to the trustee, and make a low offer for the equity and take off the costs of estate agents costs and legal sale costs if they had to force the issue.

fiveyearplan

Loopy I think you need to get some legal advice from CAB or somewhere. There's too much at stake here to get the wrong information.

loopylu36

Yes you are right and thankyou.

I did have a look at NDL website this morning, which did indicate that you could "agree" with the OR that you could effectively "buy" your equity from him. I guess common sense would say "why not" so long he gets the equity one way or another?

I think I will get some legal advice. I am going to offer my creditors 20% full and final first tho and go br if they say no - i think :eek: If I do go b/r even tho there is a bit of equity the creditors won't see much of it after costs.

Thanks for the advice.

louiser123

hi headache/loopylou

i dont know if my experience is a one off or not, but i would 1, before deciding to go bankrupt get advise! as all the good ppl have said.
we decided 7 yrs ago we couldnt carry on and went to a local accountant/insolvency practitioner.
and the guy who saw us through the next 5 years was great! i know they are working for the govt and creditors but i got the feeling our best interests were at the fore too. he was then appointed as trustee on bankruptcy.
OR interview was a cup of tea and ten minutes, lots of advice(good advice not grilling) and we never saw him again.
throughout the whole process we were able to pick up the phone and talk with our trustee straight away. and in the years beyond too!
so its a good move to go to one of these firms they were a respected local firm not cowboys. and even now 7 years on i rang him (not spoke for 2 yrs and he still knew who i was)
he actually said ( not on the record i dont think) that they far prefer bankrupts to be able to buy back equity if at all possible, they will negotiate, ( we got 8 grand knocked off just because we got our own valuation,) and its far simpler than going through the long expensive and often fruitless process of reposession.
i of course would not want to go through it again although it was painless, never paid any income payments order, just monthly payment for 3 years to pay equity off.
i do hope you both have the same experience OH and i had, and start again with a stress free life!
regards to you both i hope that helped in some way.

louise