Confusing, complicated situation, help gratefully received please - New SoA posted

fiveyearplan

I would suggest you stay in the property then. You really can't base a decision you make today on something that may or may not happen in 10 years. Nobody can predict what the property market will be like then however just look at the peaks and troughs over the past 3 decades (up, up, up, crash, up, up, up, crash etc).

BlueIsTheColour

fiveyearplan wrote: »

I would suggest you stay in the property then. You really can't base a decision you make today on something that may or may not happen in 10 years. Nobody can predict what the property market will be like then however just look at the peaks and troughs over the past 3 decades (up, up, up, crash, up, up, up, crash etc).

Yeah you're right, it will become due in 2015 and who knows what will have happened by then? And worst case it can be extended by 5yrs.

Where do you stand on retaining the property if I go BR and we wanted to switch back to repayment in order to at least be able to one day have something to show for our money or is it better just to stay on interest only, the difference is £150 a month....

Sorry for all the questions and thanks again

fiveyearplan

You can have a family member (OH for example) buy the beneficial interest in the property. If you are in negative equity it can be bought for £1.00 plus about £250 solicitors fees. Did you say you are married? If so I would think you'd get half if you split, if you are living together I have no idea if you'd get anything - sorry to think of splitting but I think you need to be clear where you stand - as I said we don't know what will happen in next 10 years!

Regarding whether or not to switch back to repayment I think you need to check out what options are available and if there aren't any suitable mortgage products available you could put the money away into a different product. You won't need to think about that for yourself until your bankruptcy is finished and if you get an IPA until that finishes as you won't be able to have that kind of savings or you would need to pay to creditors.

peachyprice

Are you likely to have a surplus income of over £99 while on interest only? If yes, you can reduce this by switching back to repayment.

BlueIsTheColour

fiveyearplan wrote: »

You can have a family member (OH for example) buy the beneficial interest in the property. If you are in negative equity it can be bought for £1.00 plus about £250 solicitors fees. Did you say you are married? If so I would think you'd get half if you split, if you are living together I have no idea if you'd get anything - sorry to think of splitting but I think you need to be clear where you stand - as I said we don't know what will happen in next 10 years!

Regarding whether or not to switch back to repayment I think you need to check out what options are available and if there aren't any suitable mortgage products available you could put the money away into a different product. You won't need to think about that for yourself until your bankruptcy is finished and if you get an IPA until that finishes as you won't be able to have that kind of savings or you would need to pay to creditors.

Buying the interest? Have never heard of that, would that not be seen as bad in the BR or is that because its negative and at the min there's nothing there to have an interest in? We're not married so yes you're right, there is always that splitting up thing to consider, everything is a possibility so god knows what would happen then?? LOL

The mortgage is fixed until 2011 so no movement there for now, so best to leave it on repayment then probably.......

Its such a confusing minefield, I have been reading threads on here most of the day and my head aches

Thanks again :A

BlueIsTheColour

peachyprice wrote: »

Are you likely to have a surplus income of over £99 while on interest only? If yes, you can reduce this by switching back to repayment.

Yes when I did rough figures on CCCS before, it gave just over £100 as available for creditors, is this what you mean? If we switched back to repayment, there would be nothing available, is this better or worse?

Am so sorry for all the questions, I just dont know how else to ask or where to turn with this? I have my appointment with CCCS in two weeks but would like to have some info before that.

Thanks for taking the time

peachyprice

BlueIsTheColour wrote: »

Yes when I did rough figures on CCCS before, it gave just over £100 as available for creditors, is this what you mean? If we switched back to repayment, there would be nothing available, is this better or worse?

Better for you as you wouldn't be tied into paying an IPA to your creditors for the next 3 years;)

BlueIsTheColour

peachyprice wrote: »

Better for you as you wouldn't be tied into paying an IPA to your creditors for the next 3 years;)

So call me a bit dim here, is it best to make sure there is little or no money available after priorities etc? I feel like I know nothing, and I have read quite a few threads, so am sorry if the answers to my questions lie somewhere in the forum....

Can they say I have to be on interest only?

Thank you

deedee_3

Pop up your SOA on here so we can check it over for you, you may have missed something. You need to list your joint outgoings ie mortgage, utilities, council tax. Your personal expenses ie haircuts, mobile. Then you put your wage and your OH's contribution to the joint outgoings.

Use this http://www.makesenseofcards.com/soacalc.html to help you do it.

When you go bankrupt the OR will have an interest in your house. You will be given the opportunity to buy your BI back from the OR, as you are in negative equity this will be for a £1 plus approximatly £211 fees.

peachyprice

BlueIsTheColour wrote: »

So call me a bit dim here, is it best to make sure there is little or no money available after priorities etc? Yes!
I feel like I know nothing, and I have read quite a few threads, so am sorry if the answers to my questions lie somewhere in the forum....

Can they say I have to be on interest only? Absolutely not.

Thank you

The idea is to get your outgoings as close as possible to your income, even if you do not need all tha allowances you should still include all that you can so you always have enough cash to fall back on.