is this a loophole?

blind-as-a-bat_2

tattiescone09 wrote: »

ok ,have i crossed the line here?
i was really suggesting the scenario of a loophole ,i wasn't meaning to be underhand or manipulate br in anyway ,do you not aggree though that the more secure debt you have against your house the more protection you seem to have against losing your home? when it comes to br and equity in your house ,it just seems rally unfair to me that someone who borrows to the hilt irresponsibly seems to be at an advantage.
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Maybe


its not that simple, if an OR deams that the mortgage and the secured loan repayments are excsesive compared with rental prices in the same area, they can still force the sale of the property, getting secured loans to offsett any equity could backfire in that way too

That comment is crossing the line, who are you to judge who has borrowed irresponsibly?, just because the system may seem to favour those with no equity, does not give you the right to vent your frustration on others

The bottem line is you have debts, you have equity, that may or may not be enough to clear your debts.

Your post sounds more like debt avoidence rather than the need to go BR.

You may not like that, but that is how your post comes accross, thats not my fault, i did not make your posts, you did.

I do understand your frustrations, and do sympathise, whether you believe that, or care, is up to you, but if thats how it comes across on here, thats just what an OR will see it, there is no way round that.

If you want to slate me for trying to help you avoid a big mistake, so be it

tattiescone09

morning coolcait and baab,
i appologise for my inappropriate post ,i dont want to make enemies here on mse ,indeed i can really use you guys help.
i have been burning the midnight oil for several weeks now on our situation ,and to be quite honest the idea of taking out more money against the house forcing it into neg equity was bourne more out of worry and desperation.anyway i would like to put an end to this matter ,although i do feel there will be plenty of people who could abuse the system in this way,i do not wish to be one of them ,and hopefully or's will be aware of this.
ok,now where do i start!!!
my oh is self employed and has been since 2005, stupidly i know! he has never paid any income tax,i have nagged him for years about this but there we go ,he now finds himself with an estimated tax oweing of approx 10k,he has now submitted his 05/06 books with his accountant ,been in touch with the inland revenue and they are holding any action for now .he is furiously working on the next 2 years books to get a final idea of how much he owes them.it will probably be between 7-10k plus fines and interest.
in the meantime he is really struggling with his work he needs to bring in at least £750 every month (plus tax credits of £640) to cover the bills, but in jan/feb 50% of his clients have pulled out because of the credit crunch,so we are really struggling
his mortgage is £650 per month ,priority debts such as council tax ,food ,phone,electric etc,etc is approx 650
we were hoping to scrape together a maximum of £100 per month to put towards a das
here is the unsecured debt
inland revenue= approx 7-10k
egg loan=6k
black horse=1k
car on hp=3k
bank personal overdraft=3k
business overdraft=1k
total approx=21-24k

paying off 24k debt at £100 per month ,and thats assuming they all freeze the interest, cant see them going for that
the national debtline told me that a das probably would not be accepted if it was going to last more than 10 years,according to these figures it would take 20 years,surely if they know that there is approx 36k equity in the house they would make him br.
any ideas or suggestions would be much appreciated
p.s we are booked into see money advisor on 18th feb,but i dont see how we can set up a das until we know a definate amount from the tax office.
p.p.s. sorry for rambling ,not been sleeping well for weeks and weeks

Bailesy27

it just seems rally unfair to me that someone who borrows to the hilt irresponsibly seems to be at an advantage.

I don't think the other BR on here would like that statement. Who's to say people have been irresponsible or not, everyone has there own story and situation. The housing prices have plumetted in the UK and that is why lot's of people are in neg eq. Others have tried to keep their business's going, through borrowing a little more to get through the recession, where employees depend on their jobs.
I think you are being somewhat snooty. Bankruptcy is bankruptcy, no one wants to be here but we are for our own personal reasons and circumstances.

Pammybun

I think you would find yourself in a bit of deep water here as your insolvency accountant would ask serious questions about you remortgaging the house before bankruptcy.

By law you are not allowed to dispose of any assets in the six months before bankruptcy so by taking out a secured loan on the house that is effectively what you are doing.

Being honest I don't think it is a loophole I would go down as I think he would be leaving himself open to legal action.

Also If your Oh can get that much on a loan would he not be better to remortgage the house and pay off the debts.

We went bankrupt almost two years ago and we lost our house, but we were open and honest and things have worked out - although we still have a year to go. Bankruptcy is not a game and it is not about cheating the system. Cheats get caught so I would advise extreme caution.

Bankruptcy is not fun and was put in place to help those who genuinely (through circumstance) could not meet their creditors. It was not set up for people to try and diddle the system and just get out of paying when they can.

We all want to keep our houses but in the end if you are a genuine case and genuinely need to file for bankruptcy then to be honest you have to expect to loose your house.

Pam

xocbc

All I would say that this "scheme" surely runs a serious risk of getting you a BRO. BR is serious enough, up to 15 years of severe restrictions and possibly going to court/prison is a whole lot worse. My advice is to take proper advise about the debts do it properly and honestly, BR is there to help people, and yes it can be unfair that the system can favour people in serious negative equity, but at the end of the day we all went into BR because we could pay our debts, and we come out of it debt free, with a clean state and a fresh start.