How flexible are ORs regarding BI

CeeBeeDeeBee

Hi

I have huge debts left over from the collapse of my business eariler this year. The CCCS say i'm best to go bankrupt but of course I'm really worried about losing the house.

I am a sole trader and we have £70K secured on the house. We have had it valued recently and for a nomal sale we should be looking around the £90K mark in the current market.

If we were to get a few agents round to value the house and ask for a realistic price for a quick/forced sale we would get a much lover valuation (anything between £70 and £80K would be fine)

Would the OR accept these valuations or get their own done for full market value? I presume that if the OR forced the sale it would go to auction anway?

Also, are mortgage companies (we're with the RBS One Account) generally OK with people going bankrupt as the debt is secured anyway and we can afford the mortgage easily?

Any advice is greatly appreciated as this is stopping me from taking the plunge

Chris

skylight

ORs are not interested in making you homeless. Plus forcing a sale is not in there interests with low valuations/equity as it costs considerably more after sales costs etc than they will realise from a sale.

But you are right to try to get more competitive valuations to submit to the OR. They may take these happily if their online research shows they are comparable. Or they may send round a valuer anyway; but these are usually drive-by ones. So dont cut the grass for a year or tidy up....


RBS wont care as long as you are up to date with the mortgage repayments and can continue to pay. They cannot force a repossession because you are BR.

custard_cream_3

Firstly, HSBC have been fine with me about my mortgage, despite the fact that they lost out on a laon when I went bankrupt. They even said when my fixed-rate runs out, I should be offered from the full range of deals available, assuming the equity is there. Hopefully all banks are so reasonable.

As for the BI, my wife has just bought it for £211 as we;re in negative equity. Our initial valuations, last November made it clear that the house would be probably be worth x amount, but in the current market, we'd be looking more likely at getting y amount...which put us in negative equity. The OR was happy with that at the time. When my case was passed over the the RTLU a fwe weeks ago, they said they'd get another valuation, as the previous ones were a bit old. I was worried that recent house-price rises might mean I was no longer in negative equity (imagine wanting to be in negative equity!) but their valuation was stunningly low...according to them, my house is worth considerably less than when I bought it in 2001! I wasn't going to argue.

It seems to me that they're not in the business of playing silly !!!!!!s with you over the house, and they'll accept a realistic/quick-sale price.

CeeBeeDeeBee

Hi custard-cream and skylight thanks for that.

I think it's pretty much as I expected but it's just so worrying not knowing if they will go with how much you say it's worth!

Another thing, my OH has lent me alot of money for the business over the last couple of years (all of which can be shown on bank statements) - would the OR be likely to take that into account when assessing how much % my BI is? So instead of being 50/50 it can be 80/20 in her favour?

custard_cream_3

I can't see them buying that one - wouldn't that make your OH preferential creditor type thing? If she's lent you money, and you've gone bankrupt, she's lost her money I'm afraid.

You'll have to think of other ways of paying her back!

CeeBeeDeeBee

Yea custard-cream tell me bout it lol

I was wondering if anyone had tried it with the OR? The insolvency service helpline suggested it because I owe her alot more than the equity is going to be.

Chris

custard_cream_3

CeeBeeDeeBee wrote: »

I was wondering if anyone had tried it with the OR?

Oh yeah! She's a fox.

Oh, you didn't mean like that did you?

CeeBeeDeeBee

LOL not quite like that... but hey what the heck lol

debtinfo

Is the secured charge on the property the mortgage to buy it, or a secured loan to put into the business

Darnit_2

Custard you card, bit of a fox yourself eh?

custard_cream_3

Apparently, I have cult status in the OR's office....or at least, that's what I think she said.