Newbie with Questions before going BR

GoingUnder

Hi All

I am just completing the forms for BR after deciding not to go down the IVA route.

I have a couple of Q's

1. Is there an approximate guide of the time between filing for BR and getting the hearing?

2. Once an IPA is agreed (and I understand that is now 100% of surplus income), do you have to keep meeting with the OR for them to go through your bank account etc to kmake sure you only have what you say you have or is there an obligation just to tell them if things change?

My wife was self employed, but hasn't worked since Oct last. If she were to restart then anything she earn't would be surplus and go to the OR so there appears to be no incentive for her to work until the IPA os over?

Any advice greatly appreciated.

GU

philnicandamy

GoingUnder wrote: »

Hi All

I am just completing the forms for BR after deciding not to go down the IVA route.

I have a couple of Q's

1. Is there an approximate guide of the time between filing for BR and getting the hearing? Its all done on the same day (if your a UK resident and not scotland) just a case of filling in the forms ring the court for an appt & thats it

2. Once an IPA is agreed (and I understand that is now 100% of surplus income) its anything over £20 a month after living expenses, do you have to keep meeting with the OR for them to go through your bank account etc to kmake sure you only have what you say you have or is there an obligation just to tell them if things change? nothing like that..all thats needed is ANY changes in finances you inform the OR within 21 days of it happening

My wife was self employed, but hasn't worked since Oct last. If she were to restart then anything she earn't would be surplus and go to the OR so there appears to be no incentive for her to work until the IPA os over? thats your choice...

Any advice greatly appreciated.

GU

Just a few thoughts

GoingUnder

Thanks, pretty much as I thought. The only thing I'd got wrong, after reading here, was the new rules about property. Appears we'll have to wait 2yrs and 3mths to see if we have to move.

Cheers

tigerfeet2006

Do you have equity in your property? Do you want to stay in the property?

I assume you have spoken to one of the debt charities?

GoingUnder

There is no equity in the property at the moment (if they take fees into account?) mortgage is £217,000 and house valued at £220000.

Yes we'd like to stay put as renting will be dearer and we have pets etc so not the easiest task.

However, we are on a repayment mortgage so the mortgage will reduce over 2yrs 3mths so should I switch to interest only for that period and pay more on an IPA?

I have thought of one more Q though. I have two sets of court paperwork from Nationwide. I need to return by the 11th. Do I declare on there that I am going BR or just ask for a 1 month deferment to get the BR sorted?

GU

PS yes, taken advice from CAB and an IP

Ineedaname

GoingUnder wrote: »

My wife was self employed, but hasn't worked since Oct last. If she were to restart then anything she earn't would be surplus and go to the OR so there appears to be no incentive for her to work until the IPA os over?

If it is just you going BR then only your wife's contribution to the household expenses will be taken into account. The rest of her income is hers and not the OR's concern.

Obviously if you both go BR then yes, your wife would be subject to an IPA for her surplus.

HOLIDAYMAD_2

GoingUnder wrote: »

There is no equity in the property at the moment (if they take fees into account?) mortgage is £217,000 and house valued at £220000.

Yes we'd like to stay put as renting will be dearer and we have pets etc so not the easiest task.

However, we are on a repayment mortgage so the mortgage will reduce over 2yrs 3mths so should I switch to interest only for that period and pay more on an IPA?

I have thought of one more Q though. I have two sets of court paperwork from Nationwide. I need to return by the 11th. Do I declare on there that I am going BR or just ask for a 1 month deferment to get the BR sorted?

GU

PS yes, taken advice from CAB and an IP

go for the one month extra time, never tell a creditor you are likley to go for BR as they try and may accelate the court process, and then get a interim charging order on the debt.

GoingUnder

HOLIDAYMAD wrote: »

go for the one month extra time, never tell a creditor you are likley to go for BR as they try and may accelate the court process, and then get a interim charging order on the debt.

Thanks HOLIDAYMAD

I have applied for the one month stay.

We are both going BR as there are joint loans to deal with unfortunately.

Wife is getting scared of the prospect of potentially losing the home down the line but there is little option having been through everything a hundred and one times.

I feel reassured having read a lot on here.

Thanks

GU

kepar

The problem as I see it is that you have a small amount of equity in your property. In the two years three months that the OR will wait , there seems a fair chance that the equity will be a lot greater.
You have options, like you say go interest only so no capital will be paid off and have a higher IPA. Remain as you are and risk that house prices will remain somewhat static or still fall or sell/ be repossessed now.
In the next two and a bit years you will have paid a lot more into the property and will you have enough to be able to pay the OR for the equity or will you have to lose it any way.
Also what is your mortgage payment compared to the average rent in the area for the size of property you need not what you would like or have at present, as the OR may only allow this figure and not the mortgage you are paying if it is excessive.

If you are going to change your mortgage, I would do it before you go br as you may find that it will be difficult after even with your present lenders.