Possible Bankruptcy But Have Property Portfolio??

deedee_3

dannyboyracer wrote: »

Is everyone in this world just trying to make a buck out of those with little if no money?? I got refered to a company called Begbies Traynor in Liverpool and have submitted the paperwork to them. What do CCCS do differently, ive already talked to the CCCS who have organised a DMP last week but i put it on hold until i decided what i wanted to do. They never said IVA would be an option?

This is a serious financial matter and as a serious business man I would have thought that you would want to research any financial descicion you make and not just walk into it blindfolded.

Please ask on the IVA boards about IVA companies and other peoples experiances of them. A commercial company needs to make money and they will say anything to get you to give them your money (call me a cynic) and charge you upwards of £7000 for the privalage.

As I said CCCS has an IVA branch (they do charge for an IVA as they need to pay the IP) but they won't reccomend them if they are not suitable because they have no vested interest in trying to make money from you.

As Dalip says your property could be at risk still on an IVA. Please talk to the chaps on the IVA board and do lots of research and maybe chat to CCCS again, maybe ask them why an IVA is not suitable and say you have been offered one. An IVA is another form of insolvency by the way.

Richard_S

blind-as-a-bat wrote: »

The problem is that an aggressive (or stupid) creditor will see the BR petition through. And i think a judge will see dannyboyracer as insolvent

If the property's are in negative equity then there is no assett value to the portfolio, only the income from the rent, which is at presant less than the rolling intrest on the loan.



If you let the current project go that will leave you with a huge shortfall, as you said, that adds to your already sizeable personal debt, and i doubt the "agressive company" will stop piling intrest on so your going to have to secure a very good wage to cover all those.

So the question is, is there any market value in any of the propertys? If not your already insolvent, and a judge will rule as such im afraid.

So the only way to avoid BR is not to get petitioned for it BR in the first place, which from what you have said is out of your control unless you can get this agressive company paid off, as it sounds like they wont settle for anything else.

Dont fall into the trap of thinking logic has anything to do with it, just because you dont see how they will profit from making you BR makes no differance, they will still do it if that is there policy. Thats how RICH_S lost, because of one stupid creditor, who was actually owed less than his legal fees probebly ended up costing him to petition Richard_S for BR

Hi Bat,

I agree with what you're saying but the actual valuation of the properties is more of an art than a science, and if Danny has them valued at the top end of the range then he may well appear to be solvent, regardless of what would actually happen if the properties were sold into the market as it stands at the moment.

As you know we were petitioned by a creditor, but it was a commercial property company, and they're reknowned for taking a harsh line with people who default on business leases. We didn't even bother to attend Court because we were basically indefferent to the outcome, and as I've said before they did us a favour in as much as we didn't have to pay the fees. And we were working ourselves into an early grave trying to keep the wolves from the door, in what was in reality, a lost cause.

Generally speaking, financial institutions, with the exception of Amex are more amenable to "doing deals" and trying to recover their losses even if that's over a lengthy period of time.

I can't remember the exact breakdown of our personal to business debt, but the vast majority was with one bank, and we did manage to negotiate a £0.25 / £1.00 deal with them. We owed them something in the region of £100k and they would have been able to force other creditors to accept an IVA if it went that way.

My gut feeling is that if the loan company suffer a loss of say £15k, and Danny can work out a deal with them, then they'll not pursue bankruptcy. His chances are probably no better that 60:40 but with so much to lose they're odds that I'd definitely go for.:D

Rich

greytdog_2

im sorry i dont normally comment on threads as most people on here have genuine problems and do their upmost to sort things out. Am I right in thinking that this guy wants his cake and eat it. He has bought up 11 properties meaning he has bumped the market so that normal people cant afford a property, he has taken on a highly expensive bridging loan when he obviously knew things were less than ok. He seems too proud to do a meanial job for low money to assist his situation, he wont sell the properties and his driving around in a £1000 a month car and has a social life. I say come back when you have had a reality check!

the_baldman

I have more sympathy for the tenants who are paying rent yet still could lose their homes. Like a lot of people in this country you have invested in property believing it was an easy get rich scheme. Now is the time to knuckle down and try to sort this mess out by working and cutting his own expenditure.

skylight

greytdog wrote: »

im sorry i dont normally comment on threads as most people on here have genuine problems and do their upmost to sort things out. Am I right in thinking that this guy wants his cake and eat it. He has bought up 11 properties meaning he has bumped the market so that normal people cant afford a property, he has taken on a highly expensive bridging loan when he obviously knew things were less than ok. He seems too proud to do a meanial job for low money to assist his situation, he wont sell the properties and his driving around in a £1000 a month car and has a social life. I say come back when you have had a reality check!

Luckily for the OP, BR is only a faint possibility at this stage. There are plenty of other courses of action he can take.

But, when OP comes here trying to plead "poverty" to many, many people who really have lost everything - everything from their cars, homes and in some cases their families - then some comments are met with derision.

dannyboyracer

Cheers for your comments everyone, some good but contradicting advice has been given... I contacted the CCCS as i said and they agreed a DMP which is ready to go when i give them to all clear, i just wanted to persue other averunes as well.

Never once have i come on here crying poverty, i think the main heading to this thread "possible bankruptcy but have property portfolio" gives away the fact that im doing quite well for myself...or rather have been in recent times. its hard to give all the facts in only a few short comments and things like my expensive car, last project costs etc have only come out after many pages of commenting.... my original interview with the IP took almost 2 hours to go through everything with a fine tooth comb, to give the same amount of info on this site will take a hell of a lot longer.

I know i am in a very fortunate position with regards my lifestlye to date but ill have you know i didnt start with the silver spoon in my mouth. I would ask that once again people dont try judge me just becuase i may or may not have done better then some of you guys / gals on here.... ive come on like you looking for advice regardless of what my current financial situation is.

hoggums

Reading some of the posters advising to hold on in hope is utterly irresponsible.

Dan needs to take action now.

Dan you need to put the property with the bridging loan on the market and sell it for a loss. Every month you hold on you lose £3k+ in interest plus any asset depreciation. Only then will you stop your situation getting worse.

You need to be sitting down and figuring out a plan on how you can come out the other end with something. If you carry on with your head in the sand then you will end up with NOTHING. You should be prepared to lose some of your properties if it means you still have an income and some property afterwards. It is not at all realistic to expect to keep going as you were.

Don't focus on what your portfolio WAS worth. Look at what it IS worth now - accept it and use that as a basis for moving forward.

Is for instance losing half your portfolio necessarily so bad? You would still have a base to build it up again in the future..

dannyboyracer

With regards the IVA i did look into it for a few days now but ultimately i will always get good and bad reviews so made the choice based on the knowledge to hand. The main point of IVA is you get to keep your assets, its much like the IVA equilelant from the states. Because you are allowed to to keep those assets though they make the plan last longer and also will make me remortgage one if not all the properties towards the end of the plan to help make one final lump sum payment.

CCCS never recommended the IVA but just because they never doesnt mean its not a viable option, the CCCS as we all know is actually run by the creditors themselves... would it therefore not be better for them to recommend a DMP which takes 15 years to pay off as opposed to an IVA which might see the creditors only getting half after 5 years with the rest being written off?? Although i think the CCCS have been very understanding and helpfull when i run like everyone they will have their own hidden agendas.

Its not a dead cert that this IVA goes through, it would be nice if it did but i have made other plans in the DMP and finally getting advice on BR from your guys too.

Ultimately sorting your debt out is your responsibility, like max said earlier you cant expect someone else to wipe your own behind. I would love to have a crystal ball and see exactly which route would be the best but again any which way chosen will have its positives and negatives.

Waspeze

dannyboyracer wrote: »

the CCCS as we all know is actually run by the creditors themselves... would it therefore not be better for them to recommend a DMP which takes 15 years to pay off as opposed to an IVA which might see the creditors only getting half after 5 years with the rest being written off??

They receive funding from the credit industry but are not run by it.

If what you said is true then why would they recommend bankruptcy when my creditors will get a pittance instead of a DMP when they will get more?

Interesting discussion here about them
http://forums.moneysavingexpert.com/showthread.html?t=1317407

maxmycardagain

im putting my christmas lights up