Possible Bankruptcy But Have Property Portfolio??

custardy

what exactly are you going BR from?
is it personal debts or what?
do you work or live solely from the rental income?

dannyboyracer

Considering BR because i cant keep up the repayments on my personal debt... the property side of things has and always will be sound, although i have no equity in any of the houses (which has recently been confirmed by a qualified surveyor) the houses rent for well in excess of the mortgage and thats what ive now had to start relying on as a salary. Previsouly I used to let the properties keep ticking over and my buildings company which is now bust was my means of paying the personal debt.

If i could sell any houses i would but i cant get buyers and trust me for the past 6 months ive tried... cant even auction as the price they will fetch will be far less than the mortgage in some cases - these are HMO properties which are sometimes seen as a nightmare unless you are an experienced LL. With regards my tenants deposits I dont take deposits as Im a genuine guy and understand that things get broken, im very skilled in the building trade and so long as there is a cuppa in it for me ill go around even during my free time at weekend to help fix things that my tenants have broken - as a result i have a very good relationship with the vast majority of them.

Thank you all for you comments especially those who are actually trying to help, those others just looking to stick the boot in and give "novel ideas" why dont you go back to what ever pathetic life you were living before and let those genuine people of this forum try help each other - your prob on benefits and draining the economy anyway so your presence wont be missed! What goes around comes around, one day when you need help i hope someone treats you the same.

custardy

TBH have you not considered getting A N OTHER job?
even a basic job giving you say £200/week has got to go some way to helping your debts if the rental income is subsidising you?

dannyboyracer

Incidentally things i didnt cover in my previous reply... yes im now living solely on the profit i make from the properties but it is not sufficient to live on and pay the unsecured personal debt.

The houses are making money, only 1 or 2 make a slight loss each month but are compensated and some by the rest. I dont really need to contact the mortgage companies and ask for a payment break as id only find myself in the same position when those repayment breaks came to an end.

Cheers for the advice on the extra work building walls, doing gardens etc. made me smile. none the less ive contacted several lettings firms on the wirral and asked if they need a handyman, 1 has come back quite positive - i doubt it will mean millions but might be a couple hundred £ here and there.

dannyboyracer

Originally i did start looking for jobs, considered going to work anywhere... in a call centre, bars, restaurants etc. but was shot down by a few recruitment agencies saying that i wasnt really suited... i have and always probably will be my own boss - i guess that comes across in my attitude and personality.

Working for people is great as you get a certain security with it but there is definately something about working for yourself that gives me a far better urge to succeed and i have been very successfull for a lad my age but i have also taken one or two risks which have now seen me in the position im in today... it takes all sorts to make a world though, without risks that ive taken in recent years i wouldnt have been able to employ all the staff i have along the way... many of these are now good friends.

On the brighter note Simon Cowell and Alan Sugar where both made bankrupt during their lives - i guess there is hope for us all... even me :-)

deedee_3

As I see it your options are

1) Go bankrupt and loose you property portfolio and your debt.

2) Look at doing an IVA but I have a feeling you will not have enough income from your properties to do this.

3) Swallow your pride and sort your attitude out and find work anywhere you can in a pub, stacking shelves, cleaning, anything that will bring in a wage and will pay your personal debts and means you can keep your portfolio.

It is your choice.

But I do advise you talk to Business Debtline, some one posted a link earlier.

custardy

obviously we dont know your full story but it seems a little effort in finding a job could reap big rewards for you in the long term

dannyboyracer

I will take your advice and give job hunting a second chance, ive printed off a load of CV's - all i can do is try i guess... just to set the record straight im not just lying at home waiting for the bills to come in with no job, ive enrolled at the local university to do a course in construction management and have already got though to the next stage of interviews with a global construction firm called Bovis so im anything but a lay about... i am trying but as i mentioned before my skill sets are all construction related and anything other than that im very much outside my comfort zone but i will give it a try until im able to go back to what im best at.

Ive been doing a load of ringing around today and i think investment properties is a bit of a grey area when it comes to BR which is why im still questioning certain advice given to me on this forum thus far... ive contacted the mortgage companies and they have said that so long as the mortgages get paid they will not seek to reposes the houses even if the house is soely owned in my name and im BR. OR when i went to see him said they wouldnt bother as these houses had to little money in them (i.e. negative equity) for them to be of interest, he did say though that a charge MAY be put on them and if within the next 3 years they go up in value i will be forced to sell. Solicitors werent very helpfull so im waiting for his friend to call me and let me know the ins and outs from a legal prospective.

Has anyone commenting actually been made BR with properties or are you just taking a punt at what you think the outcome will be?

JCS1

I used to work for the Insolvency Service, additional rental properties will vest with the OR upon making of the Bankruptcy Order. More details chapter 31 of Technical manual:

http://www.insolvency.gov.uk/freedomofinformation/index.htm

mrsthrifty_2

dannyboyracer wrote: »

Has anyone commenting actually been made BR with properties or are you just taking a punt at what you think the outcome will be?

another member with similar circumstances and BTL's and from your area, have a read of his diary or click on him name from the link and find other posts to see how he got on

http://forums.moneysavingexpert.com/showthread.html?t=825417