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Help! Worried after talking to CCCS

Hi all

I posted a few days ago re our plan to move back in to our house that we 'own' (in around £13K of negative equity!) as we our planning to go bankrupt and are desparate to keep hold of the house. We have been renting the property out for the last year and living in rented accommodation ourselves as it is a very small house.

I thought that we were completely decided about everything but I have since spoken to two people at CCCS that have really worried me. I understood that if your house was in neg equity then after BR the OR would not want to sell your home but would offer the beneficial interest to a friend of family member for £1 plus the legal fees. The first person I spoke to at CCCS said that the OR may still sell the house even if it's in negative equity just to please the creditors ('why should you get to keep your house if they have lost their money' is how he put it) He then went on to say that our family could be split up and maybe we'd be better off paying a DMP for the next 40 years! Right little ray of sunshine he was! ;)

Today, the lady in their bankruptcy team said that the OR may wait for 3 years to see if the house increases in value (that I knew) or they may apply a charging order indefinitely - meaning they could sell it at any point presumably?

Now, I realise that they have to lay out of all the risks involved but i just wondered if anyone has experienced a situation where the OR has not let them buy back the BI or has held onto the house for 3 years or has had a charging order placed on their property connected to the BR. CCCS couldn't tell me how ofen this occurs.

I am really scared now that we are moving out of our beautiful and spacious rented property back into our tiny one only to find ourselves BR and homeless in a year or two down the road! I know nobody can give any guarantees but I would love to hear experience / opinions on this so I can try to make an informed decision.

Thanks so much. :)

Comments

  • debtinfo
    debtinfo Posts: 7,012 Forumite
    Hi as long as it is your family home then the standard protocol is to offer the BI back as soon as possible, they could legaly wait 3 years but they dont. The only time they wait the three years is if you do not want to buy the BI back. In theory they could change their protocal but it is unlikely in the extreme. A charging order is only put on as a last resort this happens if you dont want to buy the BI back and they get to the end of the three years and they have to do something. In there is between £1,000 and £10,000 equity then they would do a charging order for the outstanding amount of equity. As long as you choose to buy the BI back it will never get to this stage.

    The OR will not sell the house with negative equity just to please creditors, that is completely wrong, for one the mortgagor would not allowit. The OR is interested only in things that have value
    Hi, im Debtinfo, i am an ex insolvency examiner and over the years have personally dealt with thousands of bankruptcy cases.
    Please note that any views i put forth are not those of my former employer The Insolvency Service and do not constitute professional advice, you should always seek professional advice before entering insolvency proceedings.
  • When I went bankrupt my house was in negative equity, the official receiver said that it was our family home and they would either wait for three years to see if there was any equity or we would get the oportunity to buy back the interest, which we have, there was never any mention of selling it and me moving in to rented. It sounds like you are being put off bankruptcy in favour of a debt management plan to me, best of luck what ever you decide is best!
  • peachyprice
    peachyprice Posts: 22,346 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    I thought that we were completely decided about everything but I The first person I spoke to at CCCS said that the OR may still sell the house even if it's in negative equity just to please the creditors ('why should you get to keep your house if they have lost their money' is how he put it) He then went on to say that our family could be split up and maybe we'd be better off paying a DMP for the next 40 years! Right little ray of sunshine he was!
    What complete and utter bu11shit that is, I get so bloody annoyed as the crap some of the CCCS 'counsellor' spout.

    The OR is NOT going to take anyones house just for the sake of it. They could get laughed out of court when they applied for possession.
    Accept your past without regret, handle your present with confidence and face your future without fear
  • copier_guy
    copier_guy Posts: 507 Forumite
    Is'nt the CCCS funded by the banks?;)
  • Deep_In_Debt
    Deep_In_Debt Posts: 8,579 Forumite
    Part of the Furniture 1,000 Posts Photogenic Mortgage-free Glee!
    copier_guy wrote: »
    Is'nt the CCCS funded by the banks?;)

    CCCS tend to favour letting CO's happen rather than fight them. If I get threatened with one, I shall come on here for advice rather than ring CCCS. I'm with CCCS on a dmp and have no complaints in that respect, but when I signed up for it a few years ago, they mentioned CO's and said if I was threatened then to let it happen.
    Debt 30k in 2008.:eek::o Cleared all my debt in 2013 and loving being debt free :)
    Mortgage free since 2014 :)
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