Selling flat while on DMP

teekay_tk

Hi
I and my wife have a flat in Scotland (mortgaged). We rent it out but the rental is barely just making any profit, its just keeping the mortgage paid and also pays for extras of renting like gas and electrical safety and repairs etc.

I was not able to sell it because I was in negative equity for a long time and did not want to loose money on it. I have got a recent valuation that shows that I may be able to get what I paid for it.

Now I am on DMP and wife is not. If I sell the property will I be forced to give any money in the equity back into the debts. Will my wife be able to keep her share. And could I offer that money in F&F settlement?

Thank

HappyMJ

If you hold the property in shares your wife can take her share.

You would be expected to consider using your share to pay towards your debts but you're not forced to. If you wanted to go on holiday there is nothing legally stopping you from doing that.

A DMP is just an informal arrangement to pay. It's not like a Bankruptcy, DRO or IVA where you definitely have to pay the funds to the court.

I would offer your share of the money in full and final settlement of the debt and if you don't have any other assets I'd just consider going bankrupt or take out a DRO if they do not accept. You can then hand the whole of the money over to the OR and your creditors can fight over it.

teekay_tk

Two views and reply already. Thanks HappyMJ. I really would like to DRO or IVA but I am director of LTD company so insolvency is a no no. I wish there was a sort of insolvency that was bit softer on directors.

sourcrates

teekay_tk wrote: »

Two views and reply already. Thanks HappyMJ. I really would like to DRO or IVA but I am director of LTD company so insolvency is a no no. I wish there was a sort of insolvency that was bit softer on directors.

If your debts are with collection agency's then the full and final option may work for you.
They will usually offer discounts of 30-50% off outstanding balances, in return for a one off payment.

Lowell in particular are offering 50% reduction for a one off settlement just now, in some letters I have seen this last few weeks.

National_Debtline

teekay_tk wrote: »

I really would like to DRO or IVA but I am director of LTD company so insolvency is a no no. I wish there was a sort of insolvency that was bit softer on directors.

Hi

I agree with the advice offered by the others. I just wanted to mention that in general an IVA doesn’t have the same restrictions for company directors as bankruptcy or a DRO. In theory you can still be a director during an IVA, unless there is a specific issue with your particular line of work. For example, if you’re financially regulated.

James
@natdebtline

teekay_tk

Thanks
I did not know that. I will see what can be done with either a normal or a F&F IVA. I shall read up more on this.