Bankruptcy, Main Residence & Mortgage Company

tmb70

yes I will. It is quite bizarre being involved with this this forum - reading, understanding, sympathising, learning etc.

cheers

silvercar

BUT I am trying to keep my wife out of this as she will no doubt need to apply for a mortgage or some other form of credit.

Slightly confused by this. Your existing mortgage in your name will continue. The OR may give you or your wife the opportunity to buy back the negative equity for £1 either now or in 2+ years time.

Is your wife applying for a mortgage connected to your home?

If your wife is not financially linked to you, she will obviously find it easier to get a mortgage. She will need a deposit and an income.

Ineedaname

tmb70 wrote: »

I am attempting to approach the mortgage lender with the view of asking them to write off 'X' amount and remortgage (in my wife's name) for a reduced settlement.

Silvercar, the above from the OP.

silvercar

tmb70 wrote: »

I am faced with a charge on my main res, and my house with have to approximately trople in value to break even or BR to wipe the slate clean as there are other debts.

Is this enough to qualify as being insolvent? There are loads of people with mortgages larger than their home's value. I thought that you had to have insufficient income to service your debts, not to clear them.

Regarding you approaching the lender to have a smaller mortgage in your wife's name. The fact you would be bankrupt will mean the OR owns the beneficial interest so would have to agree to the transfer. The transfer would be a sale in legal terms, so require the ORs agreement. You would really want to sort out buying back the BI first.

tmb70

silvercar wrote: »

Is this enough to qualify as being insolvent? There are loads of people with mortgages larger than their home's value. I thought that you had to have insufficient income to service your debts, not to clear them.

Regarding you approaching the lender to have a smaller mortgage in your wife's name. The fact you would be bankrupt will mean the OR owns the beneficial interest so would have to agree to the transfer. The transfer would be a sale in legal terms, so require the ORs agreement. You would really want to sort out buying back the BI first.

silvercar, thanks for the posts and I take your points on board regards buying back the BI.

I petitioned yesterday and now have recieved the Notice in todays post.

I will now inform the lender to prevent placing a charge on my house and will attend court also next week to prevent any 'funny business'. Even the court and OR have atated there is no further entitlement to obtain the charge, it will now fall away as I am now bankrupt.

Our joint bank account will be closed at midnight today.

I opened a bank account in my name with the co-op immediately after going to court yesterday and will receive the account details either later today or tomorrow.

The OR has called me and gone the some brief quetions on the reason I petitioned.

The OR has requested a meeting next week.

Is there anything I should be aware of . . .

silvercar

Bet that is a weight lifted...

Is there anything I should be aware of . . .

Make your own notes in readiness for the meeting.

You should also prepare a statement of affairs (SOA) listing your income and expenses. When you've done it post it up on here so others can comment on what they think the OR will say.

tmb70

silvercar wrote: »

Bet that is a weight lifted...



Make your own notes in readiness for the meeting.

You should also prepare a statement of affairs (SOA) listing your income and expenses. When you've done it post it up on here so others can comment on what they think the OR will say.

hi there silvercar, it is a weight lifted . . . a bit shaken up on Tuesday night and had the wobbles!!!

I have now contacted the banks lawyer and emailed the Order, which they have ackowledged. i have also sent a copy and emailed a copy to the court in readiness for monday.

I have now declared i am self employed and receive a small income (as they are tracker rates over BOE base rate) from a couple of house rentals (all with negative equity).

The total household expenditure is around £2500 pcm, and the shortfall is made up by wife, family, friends etc.

What is now eating away is that can the OR take the properties, rental etc from me. The advice I have had is that the OR cannot deprive me of an income (within reason), and I feel I qualify to keep the rental.

I have also been advised by my advisor and the enquiry line, that the technical manual (OR bible) says my main residence will be vested back due to the large amount of negative equity.

Any comments will of course be appreciated.

I went to court on Tuesday, bankrupt by 11am and OR called at 1630 hrs where I am now due in there offices on Tuesday 13th September (next Tues) at 10am.


Everything I did have has gone into the company and do not have any secret stashes anywhere, just want to keep the house and maintain an income - IS THIS POSSIBLE?????

silvercar

I'm hoping the advice you took was from somebody who took a detailed look at your finances.

The total household expenditure is around £2500 pcm, and the shortfall is made up by wife, family, friends etc.

The OR looks at what is reasonable for you to spend. The general rule is that you and your wife would contribute to household expenses in proportion to your income. So if she earns the same as you, then you pay half the bills each. Obviously anything your wife has left over is hers to do what she wants (as she isn't bankrupt) and if she wants to "subsidise" you eg pay for extras that the OR would think excessive, that is fine. The OR will only generally allow you what you need to live on. If you personally have an excess (above reasonable expenses) then OR will want you to commit to an IPA ie pay something each month to your creditors.

I have now declared i am self employed and receive a small income (as they are tracker rates over BOE base rate) from a couple of house rentals (all with negative equity).


What is now eating away is that can the OR take the properties, rental etc from me. The advice I have had is that the OR cannot deprive me of an income (within reason), and I feel I qualify to keep the rental.

This is where I really hope the advice you received was good. I'm only posting from what I've read on here, so I hope you get other comments - also search this board for others experiences with rental properties.

The general rule appears to be that rental properties are treated differently from your main home. The OR can consider the rent you receive as income, but they don't allow the mortgage payments on the rentals as necessary expenses and so you are left with no income with which to pay your rental mortgages! Unless your family finances mean you can make up the money elsewhere, this can cause you a real problem. I'm hoping the advice you've received is good, but the stories posted on here indicate some people have had problems with rental properties.

With negative equity, you could well find that the OR won't be interested in the properties, but I don't know how quickly they will pass them back to you.

tmb70

Silvercar, it has been a while since my last post, it is not the fact I do not appreciate al the views and comments - far from it.

Right then I had my meeting with OR (actually an examiner for 4.5hours) on Tuesday and the first point made from the OR (examiner) was that they would retain rents and not pay mortgages on BTL (buy to lets) therefore ending up with repo or the lender appointing appointing a LPA receiver.

I was told that there was an "old" scheme whereby you were able to buy the "property" back for £1000. The truth of the matter is that the department in Leicester has had 20% of staff slashed (voluntary redundancy etc) and the admin costs more than the token £1000 - sounds like a corporate head realising profit v loss!

Having banged on and on and on about the fact that one property had sentimental value it was said I should write in and the OR would hand it back. When I left I called a guy who was also a director and he quoted, from the official website dated February 2011, that BTL with negative equity can be bought for £1000.

The examiner, who had worked in the office for 21 years and in fear of losing her job, stated she was not able to give advice but she gave some good pointers and also requested I did not put in writing " Mrs X of the OR office said . . . " as she would be in trouble for giving advice.

The main res will be revested when I have sent a letter requesting this with a redemption figure and valuation.

Quite an experience and my mind certainly spinning . . .

Cheers for now