Options

fooddestroyer

Considering bankruptcy or IVA, but would need more expert mortgage advice on understanding my best options and their implications.

Can anyone recommend independent mortgage advisor or leading charity who might deal with this in Northern Ireland? The property is in Northern Ireland.

Thanks!!

National_Debtline

Hi there,

I cannot recommend a mortgage advisor in Northern Ireland but if you would like to discuss your options for dealing with your debts in Northern Ireland there are a couple of choices.

Debt Action NI is a government funded, free, confidential and independent debt advice helpline for people living in Northern Ireland. The contact telephone number is 0800 917 4607 and their website is www.debtaction-ni.net.

Alternatively you can try Step Change Northern Ireland, their contact telephone number is 0800 138 1111.

Please be aware that if you are considering declaring bankruptcy in England, Scotland or Wales (and only the property is in Northern Ireland), you should take advice relevant to the country you are living in. I hope that helps give you a starting point.

Laura
@natdebtline

DorisTrousers

If you have equity in the property to protect, and you want to keep it if possible, then you do need specialist advice before a Bankruptcy. If you have significant negative equity, or you are not fussed about potentially losing it then BR may be a good option.

An IVA will protect your assets, but as you rightly say there are implications with the house later on. You don't lose it, but you may have to release some equity as part of the IVA deal. A hefty proportion of mainland I.P's will cover Northern Ireland as well, but if that is the route you choose then it is imperative that you speak to at least 3 or 4 different providers before making any decision.

fooddestroyer

National_Debtline wrote: »

Hi there,

I cannot recommend a mortgage advisor in Northern Ireland but if you would like to discuss your options for dealing with your debts in Northern Ireland there are a couple of choices.

Debt Action NI is a government funded, free, confidential and independent debt advice helpline for people living in Northern Ireland. The contact telephone number is 0800 917 4607 and their website is www.debtaction-ni.net.

Alternatively you can try Step Change Northern Ireland, their contact telephone number is 0800 138 1111.

Please be aware that if you are considering declaring bankruptcy in England, Scotland or Wales (and only the property is in Northern Ireland), you should take advice relevant to the country you are living in. I hope that helps give you a starting point.

Laura
@natdebtline

Thanks. Just spoke to them both and getting slightly conflicting info...

fooddestroyer

DorisTrousers wrote: »

If you have equity in the property to protect, and you want to keep it if possible, then you do need specialist advice before a Bankruptcy. If you have significant negative equity, or you are not fussed about potentially losing it then BR may be a good option.

An IVA will protect your assets, but as you rightly say there are implications with the house later on. You don't lose it, but you may have to release some equity as part of the IVA deal. A hefty proportion of mainland I.P's will cover Northern Ireland as well, but if that is the route you choose then it is imperative that you speak to at least 3 or 4 different providers before making any decision.

Yea, thanks. We've circa 50k neg equity and zero assets to protect. So BR seems more "favourable" to us, if that word is appropriate.

Would there be less negative implications to me if I went to my lender and told them that bankruptcy is becoming likely, and seek a token settlement figure? Thanks!

DorisTrousers

fooddestroyer wrote: »

Yea, thanks. We've circa 50k neg equity and zero assets to protect. So BR seems more "favourable" to us, if that word is appropriate.

Would there be less negative implications to me if I went to my lender and told them that bankruptcy is becoming likely, and seek a token settlement figure? Thanks!

If you are currently up to date with payments then they will probably not countenance it, but if you are behind then it is worth a try I suppose. The trustee in BR will take a beneficial interest in the property, but as that interest is zero then they may be willing to cut a deal to let it bought back for, say, £1,000 plus legal costs. Failing that, they will keep the interest for 3 years and if it is still worth nothing at that point then they will lose it. That applies to the mainland and N.I I believe but do double check that with a BR specialist in N.I. for your own peace of mind. Either way, there will be significant damage to your credit file.

fooddestroyer

DorisTrousers wrote: »

If you are currently up to date with payments then they will probably not countenance it, but if you are behind then it is worth a try I suppose. The trustee in BR will take a beneficial interest in the property, but as that interest is zero then they may be willing to cut a deal to let it bought back for, say, £1,000 plus legal costs. Failing that, they will keep the interest for 3 years and if it is still worth nothing at that point then they will lose it. That applies to the mainland and N.I I believe but do double check that with a BR specialist in N.I. for your own peace of mind. Either way, there will be significant damage to your credit file.

once-fleeced2004 wrote: »

Worrying times foodie. You might find the Citizens Advice Bureau a great help. Write down all your outgoings, they would help you with this, and it's very good advice to have a bolt hole for a bit of money for everyday expenses. A Post Office Savings Account is good for that, but bear in mind it's the Bank of Ireland/Barclays if you deal elsewhere with them, they take no prisoners. Not all financial companies consider that you have to eat, have heat and run a vehicle to keep a job going. Good luck.

Thanks for this.
Just spoke to the lender and expressed the advice we'd been given to proceed to bankruptcy. They were surprisingly nice and have referred Me to a special department to analyse what we can afford to repay.

The "B" word seemed to make them uncomfortable as I'd be likely to have 50k+ in neg equity. I've suggested a token settlement, but they want to explore my income and outgoings before discussing a final figure. So a shortfall settlement is increasingly likely. How much is the question...

Am I right in assuming the latter is better in the long run for my credit file (which is currently near perfect)?

Thanks everyone!

fooddestroyer

Me again.

Question: if I go for a "short sale" with my lender and then is this worse on your credit file than if I just simply when bankrupt?

They are seeking to do an income and expenditure with us to get an idea of what we can afford.

Thanks.