Does the 3yr rule apply to everyone + what about house valuation??

DotNetter

Hi all

Just thought of another question.

When you go BR I've read it lasts a year...but there is also talk of a payment plan (of sorts) over 3 years?

Is this only if you can afford it? If you can't afford any payments does your BR only last a year rather than 3? How do they workout if you have surplus remaining?

Regarding house valuation - if I get my valuations done now (got 2 estate agents coming on monday) and it turns out that my house is in negative equity is that immediately taken into account with the BR and so they will NEVER try and sell my house or are they given a time period of 3 years in which time they are allowed to request that it is re-valued?

cheers,


Wayne

EnslavedByDebts

Wayne,

The payment plan you are referring too is and IPA (Income Payments Agreement). If you have a surplus of £99 or more after living expenses are taken from your income then you will receive an IPA which varies from 50% of surplus to 70 or 75% i can't remember.

Even if you get an IPA you are discharged after 1 year or earlier unless a BRU/BRO is placed on you. The payments are what continue for 36 months.

With regards to the house. If it is in negative equity you can buy the beneficial interest back form the OP for £1 x fees about £212. Or you can not buy them back and then the OR has 3 years to decide what to do. If they do nothing then the beneficial interest comes back to you (as i know it).

I am no expert at this but that is how i believe it to be.

EBD

DotNetter

EnslavedByDebts wrote: »

With regards to the house. If it is in negative equity you can buy the beneficial interest back form the OP for £1 x fees about £212. Or you can not buy them back and then the OR has 3 years to decide what to do. If they do nothing then the beneficial interest comes back to you (as i know it).

LOL...I guess though that they're not likely to do nothing when there is money in the house that they have a legal right to!