Bankruptcy and Help to Buy

Donkey8686

Hi

Has anyone gonna bankrupt and managed to keep there help to buy house???

It’s just I have read that it breaks the rules and they can call in the loan.
Tried to call help to buy but they can’t answer what would happen as i need financial/legal help.
when i explained no i just want to know as long as we can keep up payments can we stay or do you call in all loans. They just say you need someone legal to look at contract, I said but it says no you will call in loan, but a company I have been speaking to says as long as I can pay then it’s fine and they have dealt with other help to buy with no issue.
Can’t believe help to buy can’t even answer something like - it depends on situation, but yes some people stay.

fatbelly

Lets go back a couple of steps and try to understand why you are considering bankruptcy. Ideally give us a full soa

https://lemonfool.co.uk/financecalculators/soa.php

Donkey8686

I’m a director and need to close company as lost lots of business. I have large over drawn DLA and I have signed PG’s. I believe my share of house is only 10/20k equity and that my husband should be able to purchase this from OR. But if help to buy won’t allow us to stay then no point him trying to raise capital.

ManyWays

I said but it says no you will call in loan

Can you copy in the bit you are looking at here?

Donkey8686

if you go bankrupt or enter CVA it’s meant to be a breach - which means they call in the loan. Don’t understand how help to buy can’t say if OR lets you keep the house and you pay you can stay, or say that will be breach and we will recall the loan.
company I’m talking doesn’t see this be a issue and say they have helped loads of people with help to buy, but can’t find anything on any forums saying either way.

silvercar

From: https://assets.publishing.service.gov.uk/media/66bcb4bfb45d6a81cd31463a/Repayment_guide.pdf

page 4.

When you take out your equity loan, you agree to repay it in full, plus interest and management fees.

You must repay your equity loan in full when any one of the following happens:

The equity loan term ends (normally 25 years unless extended)

You pay off your first charge repayment mortgage without replacing it

You sell your home

We tell you to repay the equity loan (if you have not complied with its terms)

You have breached the terms and conditions of your repayment mortgage

You become bankrupt or enter into an Individual Voluntary Arrangement

ManyWays

That looks clear. Unless you can get them to say in writing that in your situation they would not require immediate repayment, you need to find another solution to your situation.

I don't know if this is a standard clause. I have seen people with a HTB go into an IVA before. I am not suggesting an IVA would be a good option for you, I am just surprised at that clause.