Help!!

aero1

I have been reading so many posts on here, and found them extremely useful and the general sense of 'youre not alone' is really really lovely.
BUT I am so confused now! I need to go bankrupt, mountains of unsecured debt, a whopping great mortgage on a house that is in negative equity, 2 kids, child maintenance payments are not regular (but now in the hands of CSA to sort out). also, to add to my general story of making a total mess of things, I got approved for an IVA and cant even make the 1st payment cuz of maintenance problems!! Confused??? hehehehe me tooooooo
I was told if I go bankrupt) I would get some time possibly a year to stay in the house. Along with option to purchase beneficial interest in the property. My question is, do I need to pay the mortgage company during that time? Because if I dont, can they just evict me/repossess regardless of what the judge says or OR? Who actually controls how long u can stay in your house?
also, as I have no maintenance in again this month I think I will have to skip a mortgage payment next month - something I have never done in 15 years of being a homeowner - how will this affect my bankruptcy? will they kick me out before I have even had the chance to go bankrupt??
sorry i probabaly seem really dumb, but I am just so mentally tired from all this...
All replies/info/advise greatly appreciated

Feelingfoolish_3

Hi

The OR has 3 years to realise your asset, i.e. sell your house however if there was equity then he may sell it quicker but generally when there are children involved then a year is the usual of what you get to find something else. Whilst you remain in the property you must pay the mortgage and any secured debt on it otherwise your mortgage company can go for possession.

With regard to missing your mortgage payment this month then your mortgage company will just send you a reminder letter and you will be in arrears but no action will be taken however it is really important to pay your mortgage even if this means nothing to your unsecured creditors.

To buy back your BI, if you are in a negative equity situation then it will cost you £1 plus £211 legal fees however you must still pay the mortgage etc.

Hope that helps and btw you are not dumb just got a lot on your mind. Have you spoken with any of the debt charities? Who did you do your IVA through?

aero1

Hiya - thank you

Did my IVA thru Payplan as recommended by CAB, unfortunately it was based on maintenance which was only ever a verbal agreement (which was naughty of them I know), and so now that has stopped it really has pulled the plug from under me! Have not sent back any paperwork to go ahead with IVA (creditors meeting was 2 weeks ago -the same day I found out a whole load of stuff which made me realise IVA totally, TOTALLY the wrong thing for me).. but I do believe I have to wait 3 months regardless of the fact that I havent returned paperwork, before it offically goes to fail and I can go for bankruptcy. I understand I also have the option to instruct the IVA company to put it in a status of fail, and so free myself earlier to go bankrupt.
I think I will have to miss one if not two mortgage payments prior to that, to pay for bankruptcy fees and BI..... but really is there any benefit to me buying the BI - does having this ensure that I cant be repossessed?? see, I grasp part of it and others, well they just go in one ear and out the other

Thanks in advance!

Feelingfoolish_3

Hiya
If you havent returned the paperwork or signed for the IVA then are you tied to them? Im not sure, you sound like you understand it more than me....

If you dont pay your mortgage then yes possession proceedings can commence against you although these days most banks have to wait 3 months but some wait 6 months.

Any point in buying the BI? This is a question I am struggling with in my head (having just gone BR) and I suppose it isnt if you dont want to keep your house but it wouldnt stop your being repossessed if you didnt pay the mortgage.

Question:
Do you want to keep the house? If so then keep up with your mortgage payments, if you have to miss a couple to pay for bankruptcy then you will need to come to an arrangement to repay the arrears and then buy the BI back from the OR

You dont want to keep the house? Then dont pay your mortgage but find yourself somewhere to live and get yourself settled. I always say one thing at a time, settle yourself somewhere and then go BR - otherwise it will get too much for you to deal with.

xx

aero1

thanks thats very good advice I love this house, neighbours great etc, but I just dont understand how I COULD keep it? if I am bankrupt how do I have a mortgage, god I just cant get it into my head!!
on the other hand, its only brick and mortar and whats a lot more important is that my kids have a mum that isnt stressed out to breaking point about money - life is for living after all So I think I am veering towards just letting the house go
Ok, so you have gone bankrupt?? What was it like?? and are u still in your house now? And are u happier now - please say yes hehe

x