House Repo now Bankruptcy

Darceydoo

Hi everyone

Have not posted for a while but to keep it short:

I am in an IVA, have a secured loan and a mortgage.

I put my house on the Market in July 2012

Last summer I stupidly took out a couple of payday loans which is in breach of the IVA rules

I admitted it to PayPlan and they threatened to make me bankrupt.

They knew the house was on the market and decided to wait to see if I sold it because the creditors would get a better dividend if I sold it privately

Meanwhile I was getting behind with the Mortgage after it going up from an Interest Only to Repayment. £763 - £1,477 to be precise. Secured loan (Nemo) £500 a month and IVA £370 a month, before ANY other bills

January 2013 I was made redundant on a salary of £31k, but offered a new role but on a salary £23k.

I was drowning so in March the Halifax took me to court for a repo order. House is being repossessed on 2nd May. House has still not sold with an Estate Agent.

I stopped paying the secured loan and the IVA aswell. Partner's parents have bought a house on a buy to let mortgage and interest only and from January 2013 we have been paying £500 a month each towards the mortgage on this house to his parents which will go towards paying a lump sum off the mortgage once it goes to repayment in 3 years time. Even though the mortgage is low, we will continue to pay £500 each. I have no legal entitlement to this house, my name is not on the deeds or any paperwork etc, my partner is though.
( we have a daughter together)

We move into this house on the 2nd May

I wrote to Payplan and Nemo after the court case letting them know what had happened and send copies of the court papers and documentation from the Halifax's solicitors. I also wrote to the Halifax 'begging' them to ensure the house was sold at market value to my IVA creditors would get something.

Luckily the house is in positive equity. Halifax is £230,000, Nemo is £62,000 and IVA is £47,000. The house is worth between £335 - £345k

I am not looking to get anything from the sale, I want my creditors to get everything

Last Saturday I get a letter from Paylan saying they have applied to the court for my bankruptcy which will take about 6-12 weeks as my IVA has failed. I emailed them straight away, sending them all of the documentation again informing them that the house is being repossessed on the 2nd May, I have not heard back.

So where do I stand, the house is going back to the Halifax on the 2nd May, how difficult does this make for PayPlan?? They have said that my IVA creditors will now be contacting me, however I am moving next week and I have a different mobile number than I had when I was solvent with them.

I have loads more questions going forward about the BR but this is like war and peace even now!!

I don't want this move to a new house to be compromised, will they try and get back the money I have already paid ( £500 a month since January?) I am praying that the house sale will give them something, but how do I ensure they get it???

Sorry for the long post xx

IF

Bumping up the board........x

pauletruth

why would payplan make you bankrupt.

chanz4

If the sale covers the full bankrupcy, you can null it

Darceydoo

Payplan are making me bankrupt because I took out a payday loan last year and therefore breached the IVA. They threatened Bankruptcy then, but held off hoping I would sell my house privatley. However since I have not sold it, the Halifax is taking it back on the 2nd May.

What I am not sure about is now the Halifax will have control over this 'asset' and not the OR is that right?? What will the OR do now seeing as I have no assets??

I wrote to everyone concerned straight after my repo court date, but either Payplan did not receive it or did not act on it. When I received the letter on Saturday I emailed my case office straight away telling her abut the repo, and she has not come back to me yet which is strange.

My secured debts will be covered, and if the Halifax sell well, then I anticpiate about 70% of the unsecured debt will be paid to the IVA creditors.