Scared about future

Seth0571_2

Hi all & thanks to this wonderful site and forum for all the advice and stories I have read.

Well here's ours, I'm on a DMP have been for several years due to silly mistakes whilst young (travelling etc) I was working in limited family business until recently which is now in administration due to personal guarantees my OH is going bankrupt, his own personal debt is nothing but the business debt is large.
We have read so much which is usually put in a way that is legal jargon & always thought our house was safe (it's in his name not mine at all due to dmp) but have recently checked housing market to find that there may be equity in house, there wasn't 6 months ago.

I'm currently trying to find a new job my OH is under the doctor due to stress of business going under & unable to work. We have a surveyor coming this week but terrified as have a five year old with us full time and two step children on spilt 50/50 parenting (not legal just the way it's always being)- ex gets all benefits although that's not an issue as she is also struggling.

At the moment our benefits do not even cover the mortgage & are relying on hand outs. This will get better i know but I'm scared about what the OR will do with regards to the house. I think there may be 4k equity in it & want to buy this back if possible does anyone have any advice on this? Sorry it's a long post just a way of venting I guess!

debt_doctor

Hi,


The OR will have 3 years from the BR date to deal with the property. The OR has the responsibility to obtain 'best price' for the beneficial interest for the benefit of creditors.
The OR will look for the option that secures the beneficial interest in the easiest way.
There will be an opportunity for someone to buy the interest from the OR, but the OR will have to weigh up whether to take money now or 'gamble' that their position will not be better in 3 years time (probably re look at situation in 2 yrs 3 months)
Generally, money NOW, speaks louder than potential money later, but that will be for negotiation between the two parties.


DD

dancingfairy

You have options so don't panic. Firstly there may be little or no equity. It is unlikely the OR would want to force a sale for little or no equity (and they should give you the option to buy back your interest). Secondly if you did loose the house then you would be rehoused by the council and would then possibly qualify for housing benefit and other benefits.
I hope things look up for you soon and you can start to put all this behind you.
df

silvercar

At the moment our benefits do not even cover the mortgage

Are you claiming all the benefits you can, including SMI (support for mortgage interest)?

seth0571

Many thanks for your responses, currently claiming ESA & child benefit as joint claim, have applied for SMI & awaiting response. Do have several interviews lined up so I'm hoping something will come up.

If the equity is valued at approx 4-5k (estimated as house prices have increased recently) does anyone know how long we have to find this money to repay the OR? I also presume on top of the beneficial interest there will be fees to the OR / solicitors? Have read that the OR does look at cases indivdually but as my name is not on the mortage wasn't sure how it works.

I do understand that the council will rehome but wasn't sure if this is still the case when I am working? I guess when they say going bankrupt should be a last resort it is right. We just do not have a choice due to business failure and debts. Once again thank you!

TheGardener

dancingfairy wrote: »

...Secondly if you did loose the house then you would be rehoused by the council and would then possibly qualify for housing benefit and other benefits.
df

You may well be eligible for social housing (most councils have transferred their housing stock to housing associations) but please do not bank on it being available!! - depending on where you are and the size of property you need - there will be a waiting list that it could take years to get to the top of. Although some places have 3 bed houses standing empty due to the effect of the new benefit rules - most are in areas that many of us might not be so keen to live - that is certainly the case where I am.

If you were homeless (and I mean on the streets with absolutely nowhere to go including relatives and friends sofas) then you may get emergency B&B

If there is any chance you will need to move then plan ahead and make sure you have 6 months rent up front as a deposit and check out the local private landlords and approach your local housing associations to see what availability is like before you rely on social housing as an option.

loveka

I wanted to reply because my partners business went bust last year and he too had personal guarantee s in place. I had no idea until the very end that he had so much personal debt. So I suppose I want to offer you my support because I have been there. Luckily I earn enough for the mortgage etc, so our situation is different. I still feel so stressed by the amount of debt we will have to pay back, and the huge impact it will have on our finances for many years to come. My partner did a DMP, which I assume you have discounted for him? Could you hold everything off until you can get a job then if you had an income maybe he could do a DMP based on that?

The other thing is that he could be entitled to some redundancy from the government- there is a fund for this which you apply for. Even if you are the owner of the liquidated company you can be entitled to it. My partner got it and it paid one of the company overdrafts. Have a look on the government website or ask your insolvency practitioner. I thought there was no way he would get it but he did so its worth a try.

I can't help with the question you posted I'm afraid. But I really think you have to look at every option before going for bancruptcy if it means you could lose your home. I really do wish you the very best of luck.

seth0571

Thank you for all your replies & sorry for not responding sooner- loveka, many thanks for yours as well I really hope things are improving for you both & thanks again for your support.
Not sure how things will pan out as have done some more digging (sometimes the internet can be scary!) & understand that its basically upto the OR if they accept a payment for beneficial interest now or leave home for 3 years. Had estate agent on Wed come in & overpriced the property even though we said we wanted a quick sale. Not sure whether to spend money on a surveyors report or not as unclear as to what evidence the Or will deem legit. Seems silly to me they will take 3 estimates from estate agents & not include fact of mark up etc..
Either way we have 3 years I guess to try and find somewhere. Hi TheGardener & thanks for your post your right looked into housing & around our area it's scarce. Guess the way to look at it is 3 years is a long time just a shame that there is a housing boom now ha ha! Once again thanks for all your advice