can the OR make you sell your house in neg equity

thegoodlife

I was wondering if the OR has the power to sell your house and make you rent even if you are not behind on the mortgage and it is in negative equity? thanks!

rog2

thegoodlife wrote: »

I was wondering if the OR has the power to sell your house and make you rent even if you are not behind on the mortgage and it is in negative equity? thanks!

Very unlikely, tgl - As there would be no financial gain, this would be of no benefit to your other creditors. If anything, this would increase the level of 'debt' in your 'estate in bankruptcy' thereby reducing the amount, if any, that your creditors would see as a 'dividend'.
Normally, you would be given the opportunity to 'purchase' your BI in the house, for a nominal fee, plus solicitor's fees (the Insolvency Service has its own low cost conveyancing scheme that you can use).
You should, however, try to deal with this aspect as soon as possible, once the OR has 'vested' his interest in your home, as prices can rise, thereby increasing the possibility of positive equity.
Once the OR has 'vested' an interest in your home, he has three years in which to act, otherwise he must return 'title' to you.

peachyprice

The only time this may happen is if your mortgage and any secured loans you might have are far higher than renting a similar property in your area, but there would have to be £100'S and £100's difference, not just say £200.

It can and does happen, there have been a few people here who have been asked to move out because of this, the purpose of which it to reduce your outgoings to be able to implement an IPA

HTH

debtinfo

They can't actually make you move out, but they can impose (with the courts agreement) an IPO which would make it impossible to pay a very high Mortgage

thegoodlife

oh right thanks! what is the difference between an ipa and ipo ?

JCS1

thegoodlife wrote: »

oh right thanks! what is the difference between an ipa and ipo ?

IPA is Agreement

IPO is Order made by the courts.

thegoodlife

Thank you, gosh an ipo sounds scarey lol, does that happen when someone isnt paying their ipa? sorry for all the questions I am very worried about being made to move form our home and rent as it would cause so much disruption as we would have to move 13 miles to the nearest town as it is very unlikely we would get rented in our village , would mean so much school disruption, bit scared !

peachyprice

An IPO is when the OR goes to court to get an order for you to pay because you don't agree with an IPA.

thegoodlife

Thanks everyone , I am quite sure I am not going to disagree much, so wont worry about it!

blind-as-a-bat_2

thegoodlife wrote: »

Thanks everyone , I am quite sure I am not going to disagree much, so wont worry about it!

Not if they do there sums right, but if they dont, you disagree as much as you like. An IPO is not just an enforcement, it is also when an examiner/IP oversteps the mark and tries to set too high an IPA (rare, but it does happen).

The application to the court to decide is a two way thing, both to force a non co-operative BR to pay what they should, but also to protect the BR from an over zealous examiner, its not a punishment, it is a layer of protection;)