Will my parents lose their house?

noz85

Hi some basic help please?

I've tried to read through the BR advice in this section, but the wording is all above my head.

My parents are on the verge of BR and they have no idea what they will do if the worst happens.

As far as I know they have remortgaged their house to the maximum amount they can. whether that's 100% of the value of the property, I don't know.

As well as having many other concerns, my main one is - are my parents going to be homeless?

One works full time, the other is not earning.

How does the system work in terms of what happens to your property?

Thanks

Ps. No need to contact the NSPCC. I'm 28 and have my own place.

alastairq

Hi...much will depend on how much equity there is in the property.

Also, are both parents intending to petition BR, or just one of them?

[A BR petition is an individual act.....not a 'joint' one]

Thus, the OR would need to identify what share of the equity available, can be considered an asset-in-BR.

Whether your Parents eventually end up losing the house will also depend on their ability to meet mortgage repayments.

Regarding the value of any equity in the property, there is a maximum amount [I believe, £10,000..but will probably need correcting by others?}....below which, the OR would seek to place a 'charge' on the property, to be redeemed if said property is sold in the future.

noz85

Neither are really prepared to talk about it very much. So neither are intending to petition t this stage.

It's obviously not as simple as 'yes' or 'no'.

What is "the OR"?

I don't have a clue what equity they have in the house, if any. One is working full time so should hopefully be able to meet repayments? I don't know.. Would they be able to freeze repayments for a period to ease the strain to begin with?

I really don't even know what questions to ask.

luvchocolate

Hi if you go on the i.s website there is a lot of information which you will find helpful. read everything you can...it helps.
so pleased you are helping your parents

noz85

luvchocolate wrote: »

Hi if you go on the i.s website there is a lot of information which you will find helpful. read everything you can...it helps.
so pleased you are helping your parents

Not much help really. Just thought I should at least try to find out what might be ahead of them even if they won't. I'm concerned that they will lose everything and will have to move into my house with me and my fiance! (who would move out immediately). Not a good position to be in. Well and truly in the middle. Who could stand by and watch their parents be made homeless? But my other half has already said she couldn't cope with it and would have to go. I don't blame her either!

What do you mean by "the i.s website"? Sorry

luvchocolate

Insolvency website...everything you need to know about bankruptcy then come back on here for any questions,
good luck you are in a difficult position but the more information you have the better x

alastairq

Hi..the OR is the Official Receiver.

This is the person who, being a Court Officer, takes control of all the Bankrupt's financial affairs.
To be fair, even if the OR intended to realise assets in the shape of the property, that doesn't happen instantly.

It might be that there is insufficient equity following the re-mortgage.

In any event, why should your parents not move into a rented house should they be compelled to sell up?

It is doubtful they'd want to move in with you and your OH.....either.

The future for them, and you, really isn't as bleak as you imagine.

As luvchocolate says,the Insolvency Service website really is self-explanatory, so we all advise taking time out to study the information, and dispel the uncertainty of ignorance?

dancingfairy

It appears it will possibly come down to whether they can meet the repayments (when the other debts are dealt with). Also is the mortgage a comparable amount to local rents? If it is significantly higher then the OR may not allow it as a monthly expense.
Your parents really should get some independet free advice from someone like National Debtline, their local CAB or StepChange.
Best of Luck
df
Edit: if they do need to give up the house, any shortfall once it's repossessed will fall into the bankruptcy so it would be a case of finding a rental and paying the monthly rent.

TheGardener

Hi - as others have said, your parents could simply find rented accommodation (if there is equity in the house that the OR wants to realise). Once the burden of their debts has been removed - there is no reason to suppose that they cant afford to rent and have sufficient income to live on. They may well be eligible for some housing benefit if the one income is not sufficient to meet their basic needs. Although the OR has a responsibility to realise the debtors assets - they don't take away furniture and household goods and will reach an agreement with your parents about how much income they can keep for reasonable domestic needs. If there is no surplus income after their months bills are paid, then they wont be expected to pay any more to the OR.

It is not the OR's intention to turn people out onto the streets with no belongings or roof over their heads. Even the costs of running a cheap car are permitted so depending on their income, I would suspect they will be better off BR.

One of the biggest costs in all this is your parents sanity and well being - the stress of the debts must be taking its toll on the whole family. Please try and get them to seek the free advice mentioned in other posts

PS ther eis a thread somewhere that lists all the abbreviations - I'll find it and bump it up the board.:)