Need some help guys for some friends!

k2nga

Hi All,

I know most know my story and know that my BR did not involve a house but i have some friends who have been advised by the CAB and by an IVA company that BR is now there only route and i dont know the answer so thought one of you will know.

Like i say they are having to go BR and have a property in negative equity even though they thought at first they might keep the property after the BR they will still not be able to afford it as the property has a secured loan on it and that have accepted that the house will go but now want to move on.

They are about to miss the first mortgage payment as they need the to start to save the money towards the BR as they are both having to go BR.

They have 4 kids so are really concerned about what to do about the house. They realise they will have to rent but are wondering if they should look to leave the house asap to rent as its likely they would still get pass a credit check at the moment or wait to and move after BR?

They know they have the option of going down the council house route but are concerned that if they wait it out and then get evicted even though as i have told them this could be sometime that they could end up in a hostle waiting for a property with no where to store there household items which obviously will make worse.

I have told him about the site and what a helpful lot we all our and i hope he may join in on this post to ask there own questions but any advice on this issue would be great as its something like i say i did not have to deal with.

I have though offered my services as there BR advisor so will be helping them with the rest of it:rotfl:

Cheers in advance.

dalip

My daughter recently went to our council to see about housing.They have an agreement with a couple of estate agents whereby they find affordable private rental for those who would otherwise be waiting a long time for H/A properties.You get appointed case worker. They negotiate the rent on your behalf,pay the deposit and first months rent. You pay it back at an affordable amount. Might be worth them seeing if their local council operates the same or a similar scheme. Sorry i could not be more help.Dx

k2nga

Dalip your a star as always thanks for that i have sent them the link to this so hopefully they will read it and find out as ifs thats the case that would be a great help to them just at the moment.

SkintYokel

Hi K2nga

We were in the same position re our house. Mortgage and secured loan which we could no longer afford meant that keeping the house was an unrealistic prospect.

As soon as we realised this (and made the decision to give it up, Vol repo) we started looking for rental properties with a view to moving out asap (which we did before going bankrupt).

Although we were still in a position that we would have passed a credit check we were open and upfront with the agencies we approached, telling them the reason we were looking was impending bankruptcy. Some told us there and then that they would prefer not to deal with us as it would cause problems when we were declared.

We soon found one agency however who said 'no problem', rented a property from them within a couple of weeks and are still happily there over a year and a half later.

My advice, based on the above, would be to move out and rent sooner rather than later.

k2nga

Cheers SkintYokel that was my thoughts although i was worried as i know little about the property side of BR that was jumping the gun by suggesting this too early on.

Like you we had agents that said they did not want to deal with us but one said we make better clients as we have the money as no more debt and they know you cant get anymore debt for many years. I suppose some worry about the landlord finding out after the event but of all the post i have read on here i have never heard of anyone be asked to leave by the landlord when they find out about a BR as long as they are getting there rent the Landlords are happy.

Holes_in_my_pocket

Though its a pain in the butt a council house would be a long term solution and though will end up in emergency accomodation (B&B) untill a property is available which i would imagine wouldnt be that long and of course they would be top priority as having kids . There council will arrange storage of furniture but this info isnt advertised

SouthCoast

Shelter can also help:

http://england.shelter.org.uk/

nev32

hi all im K2nga's mate. the guy's he is talking about. so reading along the lins we can move out once we have found a place to rest even though we havnt gone b.r im i reading that right. what happens if the court dont grant us the br if there is such a thing & secondly wouldnt can we still live in another house while owning one. well actually we are giving up the right to owning one i guess. just really really worried.

flowergirlgush

You can rent a house while still owning another as you wont be paying the mortgage on the house you own. Even if you didnt go BR the mortgage company will repo if you are not paying the mortgage. A fresh start is best. If you cant pay all your debts then i doubt you will be refused BR. Try not to worry too much there is life after BR and its usually a lot easier. good luck

nev32

thasnks for the reply. i guess though if br doesnt go through we will be laiable for the remainder of the debt?? hopefull it wont come to that but got to ask.

SkintYokel

nev32 wrote: »

thasnks for the reply. i guess though if br doesnt go through we will be laiable for the remainder of the debt?? hopefull it wont come to that but got to ask.

If the BR doesn't happen then any shortfall still owed plus costs, legal fees etc will be a debt still owed by you to the lender(s)

If you are declared bankrupt then this shortfall will be included in your bankruptcy.

You do seem to be quite worried that your petition will be refused. Is there any reason that it would be?

The equation is simply

What do I owe? Can I afford to pay it and still live?

If the answer is no then there is no reason for your bankruptcy to be refused