bankruptcy and negative equity

jakdalad

hi,

i am asking for some advice regarding my mum.

She is in a situation where she is approximately 20k negative equity on her house, she has a mortgage, she is on an IVA also, and also she owes money on payday loans. my mum can not afford to pay her bills and is recently behind on the council tax and is struggling with thegas meter installed recently as well.

my mum earns approximately 18k a year and she lives with my sister who is also earning but not contributing anything.

she has had a meeting today with a man from the halifax regarding her mortgage, he has suggested she pays all the paydayloan she owes the mininum, eg, £1 a week, and risks getting CCJS.
also that she just pays what she can afford it with her IVA.
and that she priorities the mortgage, council tax, utility bills.

he has warned her against bankruptcy.

i am seeking some advice regarding this, mainly my question is, if my mum goes bankrupt would she be able to keep the house and would she have to make bankruptcy payments?

any advice is appreciated

OutofDebt-NOT-OutofDanger

As it's in negative equity, she should be able to keep the house providing the mortgage is up to date.

Depending on her living expenses, she may have to pay an amount to creditors through an IPA.

I would recommend she contacts CCCS or CAB for more detailed advice though.

IF

Hi jakdalad and Welcome to the Bankruptcy (BR) Board. As OoDNOoD has said please ask her to contact one of the following debt charities. Please try these they don't charge and are impartial. They will go through all her options and if they suggest bankruptcy then come back to this board and we will help you/her all we can. Also if your not ‘clicking’ with one of the Debt charities do try another. We advise you to try at least two others for your own piece of mind. Your BR could be refused if you have not sought advice.

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• National Debtline - Website: National Debtline Telephone: 0808 808 4000
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Others:

• Business Debtline
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• Christians Against Poverty
• PayPlan
• TaxAid - Help with tax debts.

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Best wishes
If...x

Gimpsdad

Either her IVA payment has been set too high, leaving her no option but to use credit to survive, or she has not got out of the cycle of debt, which is just as bad.

Speak to CAB, the circumstances you describe shouldn't maen she will lose her house, but get impartial advice.

Spleen_2

If's advice is amazing of course. Speak to one of the organisations listed in the first instance.

Talking, as ever, as someone who's going through the process, and not an expert.... My house was in negative equity on Bankruptcy, and I was allowed to keep the house as long as my payments were kept up.

A charge was put on the house for 3 years, so if the value rises to be in positive equity during that time, the OR would want the equity.

Doesn't look like yours (or hopefully mine) will rise that much over that period.

You'll get some advice which I'm sure will put your mind at rest from these organisations, so good luck!

Spleen

jakdalad

thank you all very much