General Advice

apz7

Hi, I have posted on the forums before and have explained the situation. I am due to speak to a bankruptcy advisor soon! 

I would just like to ask a general question as I am very confused on the situation.

if a family home is in negative equity - and is still in negative equity after the 2 years 3 months when the OR re assesses the situation - what happens?
I understand it may be revested into the bankrupts name, but what happens to the secured debts after this? Is there a charging order placed on the home?

also I would like to ask during bankruptcy, I understand all unsecured debts would be taken away, however would we still be able to pay secured debts and if they are satisfied to the full amount would they take their charge off the property? (During bankruptcy)


Thankyou - please ask any questions that would help an answer! look forward to hearing from you. 

apz7

apz7 said:

Hi, I have posted on the forums before and have explained the situation. I am due to speak to a bankruptcy advisor soon! 

I would just like to ask a general question as I am very confused on the situation.

if a family home is in negative equity - and is still in negative equity after the 2 years 3 months when the OR re assesses the situation - what happens?
I understand it may be revested into the bankrupts name, but what happens to the secured debts after this? Is there a charging order placed on the home?

also I would like to ask during bankruptcy, I understand all unsecured debts would be taken away, however would we still be able to pay secured debts and if they are satisfied to the full amount would they take their charge off the property? (During bankruptcy)


Thankyou - please ask any questions that would help an answer! look forward to hearing from you. 

added onto the last section, or would the creditor with the charge simply not accept any payment and go for the sale of the property?

fatbelly

The secured debts stay secured.

The 27 month clause has been replaced by 'as soon as possible.'

apz7

fatbelly said:

The secured debts stay secured.

The 27 month clause has been replaced by 'as soon as possible.'

Thankyou.

my father is planning to pay off these secured debts - would they set up a payment plan or accept bulk payments to fully pay off the balance and then take their charge off?

or is it unlikely they would accept anything and would just try and sell the property?

sourcrates

apz7 said:

fatbelly said:

The secured debts stay secured.

The 27 month clause has been replaced by 'as soon as possible.'

Thankyou.

my father is planning to pay off these secured debts - would they set up a payment plan or accept bulk payments to fully pay off the balance and then take their charge off?

or is it unlikely they would accept anything and would just try and sell the property?

You would have to ask the creditors this question, but most would agree terms with you, i`ve never seen one yet refuse money in any form.

An order for sale, these days, is extreamly rare, and there are a number of court stages to go through to obtain one, usually having an affordable repayment plan in place, is sufficiant to stop such action.