Bankruptcy and house

putty71

Help please
I have asked on here about IVA's but read on another post that some properties are protected if you declare yourself bankrupt. I thought that if you went BR, then you lost the lot. Can someone please explain please.
Getting desperate

Putty

MyCashTimeMMT

Hi, someone with more knowledge than me will answer you better tomorrow I am sure but as I am still up (and really shouldn't be!) I would just like to say.....

We are considering going BR for our unsecured debt but we really want to keep our home so will think long and hard.

An Official Receiver looks at your assets, your house being the main one presumably, and if there is equity in it then this will be need to be released to pay or partly pay your debts.

If, like us, you have no equity and continue to pay your mortgage and any secured debt, then it really isn't in anybodys interest for you to lose your home.

Its more complicated than that as I'm sure you know and it depends on your circumstances but, as I said, someone will give you more info tomorrow. I shall be looking at the advice too if you don't mind.

Regards.

putty71

thanks for that - anyone else?

debt_doctor

If the property has no equity then the 'beneficial interest can be bought for £1 plus £211 costs. This prevents the insolvency service having any further interest in your home.

If the property has equity then someone will have to purchase that interest from the OR otherwise the property could ultimately be sold.

Lets say the property is joint owned, has £10k equity, and only one partner is going BR;

Only half the equity belongs to the BR so £5k, costs of sale would be around £3k leaving £2k. Make an offer to the OR of say.... £1200 ;house saved.

Obviously the more the BR's equity the more cash needs to be raised.

DD