Pre-BR - Should i sell house quick?

headinsand_4

Hi all,

I got my first court summons today from a CC company. I've been off work and on disabiity since January which is the reason I havent kept up payments on the card. After the obligatory CCA request, assuming i have to admit the debt etc. I will make a token payment offer on the court papers. £5 a month for a 8k debt. This is the first of about six cards that are currently threatening me with court.

My question is as my offers of payment are very low, any one of them could go for a charging order or petition me for bankruptcy (one of my cards is MBNA for 25K and who do not want to take me to court and just hassle me).
I owe about 80K all on unsecured.

Should I just admit defeat and sell my property and then start making F&F settlements to all the debtors? Does anyone know what the chances are of a court forcing me into BR or charging orders on unsecured loans?

Apologies if this is the wrong forum but i guessed i might get some good advice here...
Thanks.

debtmonkey1

Hi!

Firstly...as I'm sure a lot of people will echo on here-get FREE advice from a debt charity (such as CCCS-you'll find the links on this site) to see if BR is an option.

In my (unskilled!) eyes it MAY be. Firstly-how much (if any) equity do you have in your house?

Also-apart from the mortgage are any secured loans makig things difficult (as these are NOT written of in BR).

If there is NO equity a friend could 'buy' the beneficial interest (posh way of saying buy any future rise in value) for a £1 (sounds daft but that's the way it's done). A solicitor would draw this up for you for £200 odd. If there is some equity you can negotiate with the official receiver to buy it OR someone else (I beleive) can buy it for you.

As far as the CCJ/token payment goes if toy list ALL outgings on the court forms & this is all you have left then I'd say most county court judges will agree it. Then it's only if you default (ie DO NOT pay the ammount agreed) that the lender can go back to court & ask for a charging order. As far as I know they CAN'T do this until a judgement has been made & if you offer to pay a token ammount & it's accepted & you pay it on time you should avoid a charging order.

Also-if you DO decide to sell pre-BR do NOT sell at undervalue (like these 'sell & rent back' schemes)-as the OR can overturn this!

As far as full & finals go-it really is a pain in the butt & takes hours/weeks/months-& if the letter is not worded correctly they may try & come after you later!!!

My advice (based on my own experience & obviously get help from the charities too!) is this-1)-If you sell your house/give back keys then BR will wipe ALL unsecured debt-even if there was a shortfall on the mortgage THIS WOULD BE INCLUDED-they can never come back after you for this.

2)-If you keep your house either buy the beneficial interest OR make sure someone can buy it for you! Obviously this needs to be thought of BEFORE the BR as the OR is entitled to any potential value in your house.

If you can post your debts (I know it's hard!) & income/expenditure on here (look at other posts to see what can be included-you'd be surprised how much can be!) & your house value/equity.

Now before I get 'flamed' for this BR is not easy but my word it is quick & for that 2 hours (tops) you are in court you walk out WITH NO DEBTS.

:ets face it-your credit file is knackered anyway for 6 years! So BR being on there will make no difference.

Feel free to post-we're here to help!

headinsand_4

This is useful information, thank you. I have enough equity to pay off my debts but I am not in a position to remortgage as i am on incapacity benefits.

I have lived with my fiance here for 3 years (I've been here 7 years- divorced - this being where the debt started....!) My partner is helping with the mortgage payments - the house is in my sole name.

What is concerning me is this - firstly all my other debt is unsecured therefore my first instinct is to pay my mortgage above everything else and stay in the house and at least let it all go through the court system.

I just feel that CC companies will come after me for Charge Orders and in the end i might as well sell up and at least have some control over my assets, rather than remain in a house which is stacked with orders which at any point might become "orders to sell". i might feel i'm living in a timebomb.

Also would the fact that my fiance also lives here allow her some equity even though she has no name on the mortgage.

can you explain to this newbie what the benefit of Beneficial Interest is here?

thanks!

debtmonkey1

Hi-quickie as pub calling (!!)

Ok......if you wanted to keep the house but wipe the unsecured debts you would have to buy the 'equity' (beneficial interest -posh term I know!) by negotiating with the OR.

If you don't buy the equity the OR will eventually-think they have 3 years to do it-sell the house & use any 'profit' to be shared between your creditors.

So-a catch 22. Wipe all unsecured debts/possibly lose house-ulness you can afford to buy the interest.

Obviously if you sell the house & go BR fairly soon afterwards-the OR will want the money made from the profit!

I'd definately contact one of the debt charities on here to help you more-let us know how it goes!

philnicandamy

before you decide anything...Your first port of call as suggested should be to contact one of the Debt Charities; see links below. Their services are free; they have no vested interest to serve; their advisors are professionally trained and the advice they give will be objective and in your best interests only. CCCS operate a system of telephone appointments that are designed to be flexible and don’t require you to attend an office based interview. At the CAB you will need to make an appointment with a specialist Financial Advisor; other advisors may not have the specialist knowledge you’ll need.
http://www.cccs.co.uk/
http://www.nationaldebtline.co.uk/
http://www.citizensadvice.org.uk/index.htm
If and only if you’re advised that bankruptcy is the most suitable solution to your financial problems then the guys & gals here will help any way they can.
For more specific advice and support, in an environment that is managed by people with first hand experience of bankruptcy, and moderated to ensure that no deliberately inflammatory or abusive posts are made then please visit:
http://bankruptcysupportersclub.co.uk/default.aspx

mushroom1982

would the official reciever look unfavourably on it if I handed back the keys of my house before bankruptcy? I have a rented property lined up to move into and once I move into there I will be unable to pay both the mortgage and the rent. Also is it better to leave it in the hands of the OR? I'm not quite sure what would happen if i declared myself BR but was then unable to keep up mortgage repayments.

tigerfeet2006

:spam: :spam: :spam: :spam:

backontheup

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Mr Watters

Wow they must be a brilliant bank if they are operating from a Yahoo account!

I think that you have missed the T off the front of your name, mate.

tigerfeet2006

PMSL well said Backontheup

Guess what every one of his eighteen messages says lol

rog2

petterson wrote: »

Hello you need loan right?
i know of a lending company i will introduce to you now this company

offered me £234.6 million pounds with which i build my new wood factory

you can also get loan from them they are very reliable in fact they

sent the loan to me just 48hrs i still have their mailing address
it is
[EMAIL="diamond_loan_lenders@yahoo.com"]diamond_loan_lenders@yahoo.com[/EMAIL]
contact them now directly they have help many they can help you out now

fast.

Mr Watters

I manufacture wings for pigs and am looking for a loan of slightly less than £234.6 million. Do you think they can help me.