How much equity needed and rentals

RobbieF_2

Hi all. My business is looking as though it might go under and I want to be prepared as I can be.

Considering going bankrupt (debts could be in excess of £80,000), and can accept this but my partner and I are hoping to try and keep the house. It is joint owned with a max of £25,000 equity (at absolute best), will they take this?

Also, we have a rental with £5,000 max equity but a rental income that doesn't quite cover the mortgage. I've been told they may take the income but leave us with the mortgage (obviously then taking my partner down with me).

Any help/advice would be much appreciated.

dojoman

Hi and welcome to the forum:)

The OR now has 2 years 3 months to deal with properties. As for your rental property, the OR will take any rent that you receive on this property.

MTDancer

Hi, just thought I would tell you that our mortgage company appointed their own receiver and they take the rent to cover their debt, this was agreed with our trustee I assume

dancingfairy

I'd speak to the business equivalent of National Debtline - I think it's called BusinessDebtline and then once you have a clearer idea of what you can do with the business and what effects it will have on you then chat to National Debtline, CCCS or your local CAB for advice as to your best course of action.
Best of Luck
df

debtinfo

Own home - The trustee will want your share of the equity, they will assume 50:50 split unless there is reason not to. The trustee has 3 years to deal with your interest.

Rental home - The trustee will expect you to hand over the half the rental income, if the OR is trustee then they will not use this to pay the mortgage. They are entitled to your interest in the equity in the property also. If the mortgage is not being paid then the mortgage company may apoit their own receiver to collect directly. The trustee has an unlimited amount of time to deal with the property

This is a large and changing subject the above is just an overview

MTDancer

Thanks for that debtinfo

RobbieF_2

Thanks very much for the info.

So basically if I go down, they'll take the rental income (or at least half), but leave me to pay the mortgage. And because my partner is also on the mortgage if we can't cover that (which we won't be able to) she'll then be taken down as well.

Anyone else been through this recently? Love to hear what happened so I know what to expect.