Help and Advice Please

jet21

Hi there.
In need of some advice. In a bit of a mess. Mortgage, secured loand and a failing IVA. Im on the sick atm so insurances are paying mortgage and loan. Probably going to file for bankrupcy in next few weeks.
Just dont know what order to do things in to ensure we can find somewhere to rent, as probably wont be able to keep our house once insurance payments stop in October. Also baby on the way!
Dont want to go BR then in 6 months get repossesed and have nowhere to live. Cant pay motgage and secured loan and save up at the same time for 6 months advance rent. Not paying IVa as a 6 month break has now just finished and still off work.
cant sleep at night for the stress and worry!!
Help please.

tigerfeet2006

The first thing you need to do is talk to one of the debt charities (numbers in my sig.)

They will go through all your options with you and if ultimatley you decide to go BR then the judge will require you to do this. If you don't then he could delay your BR untill you have done so.

What you would normally do if you want the house to be repossed then stop paying the mortgage and loan. Put the money towards your rent and moving and BR fees. Secure a rental property. File for BR. Hand keys back to the mortgage company.

A good thread to look at is Scarlett.1974's BR diary.

http://forums.moneysavingexpert.com/showthread.html?t=596237&highlight=scarlett+diary

jet21

What happens if we go bankrupt then our house gets repossesed, I mean with the secured loan?
Also if you are not BR yet should you still expect to need 6 months rent in advance, we are in IVA at the moment.
My brother lives with us and would probably be moving to rented home with us, will they take his earnings into acount?
Also another worry is that I'm not going to be back at work probably until middle next year. So am worried about this.
Do you think that if I stopped paying my mortgage and secured loan when my insurance is paying out I'd get in bother over this for fraud or something similair?

tigerfeet2006

jet21 wrote: »

What happens if we go bankrupt then our house gets repossesed, I mean with the secured loan? Your secured loan becomes unsecurred and is inclused in your BR.
Also if you are not BR yet should you still expect to need 6 months rent in advance, we are in IVA at the moment. It would probably be prudent as an IVA is a type of insolvancy. It might be an idea to ring a few agents anonymously and ask them.
My brother lives with us and would probably be moving to rented home with us, will they take his earnings into acount? If he makes a contribution to the bills etc. then you have to note it on the BR forms so the OR knows of all income coming into the household but the OR cannot pry into your brothers affairs.
Also another worry is that I'm not going to be back at work probably until middle next year. So am worried about this. Why is this a worry?
Do you think that if I stopped paying my mortgage and secured loan when my insurance is paying out I'd get in bother over this for fraud or something similair? Not sure on this I am afraid so will leave it to the more experianced.

Hope some of that helps a bit but you really need to talk this through with one of the debt charities.

jet21

My concerns about work are that we go BR then I go back to work and an IPA soars. Can they change an IPA at any point?
Obviously it would be nice to sell the house instead of repossesion but they're not selling in our area, propbably not in most others either the way interest rates are going.
What if we dont have enough surplus after I & E to make any payments towards BR?
I am going to phone a debt number for advice.
Thanks for all the help.

jmc2305

Hi Jet21
We have an IVA which is gonna fail due to house falling into negative equity. We moved last summer to scotland for husband's promotion and the house still hasn't sold. Obviously w2e moved to rented accommodation and cos of the iVA we had to pay 6 months up front. The first 6 month tenancy was through the estate agent but spoke to the landlord when we wanted to renew (knowing we would probably want to live here years) and suggested to him he was wasting money on the management fee from agents. He agreed and we have now set up monthly direct debit to him - i don't think he knows about iva but have never failed the rent so don't see it as a problem. If we had renewed for another 6 months with estate agent we would have to have paid 6 months up front again. Finding 6 months rent is not an easy one though. Good luck - looks like we are about at the same stage.

fermi

jet21 wrote: »

My concerns about work are that we go BR then I go back to work and an IPA soars. Can they change an IPA at any point?

If you had an IPA (and you might not) then it can be changed when your circumstances change. But because an IPA only takes a percentage of surplus income it will only go up if you can genuinely afford it.

What if we dont have enough surplus after I & E to make any payments towards BR?

If that is genuinely the case then you won't be asked to make any. An IPA is only in force if your monthly surplus above whet you need to live is £100 or more.

I am going to phone a debt number for advice.

Good. Make sure it is CCCS, National Debtline or Payplan that you call.

Hope that helps.

You can read about IPAs here: http://www.insolvency.gov.uk/guidanceleaflets/ipoipa/ipoipa.htm

jet21

Thanks.
I was advised on another forum that once you are discharged if your circumstances changed they cant do anything with regards an IPA.
IE. if we have been set no IPA and are discharged after 12 months, then after that time they cant change it?
Is that right?

fermi

jet21 wrote: »

Thanks.
I was advised on another forum that once you are discharged if your circumstances changed they cant do anything with regards an IPA.
IE. if we have been set no IPA and are discharged after 12 months, then after that time they cant change it?
Is that right?

If I understand what you mean correctly, then yes.

An IPA can only be set up while you are undischarged. So if you do not have enough surplus income for one during the bankruptcy, and you are then discharged without one being in place, then you won't ever get one.

If an IPA is set up before you are discharged, then it runs for 3 years and you must inform the OR of any increases in income even after you are discharged. The IPA can then be changed. But it works the other way as well, so if your income goes down or living costs increase then the IPA can be reduced or even stopped.

There can also be some confusion because the wording of the IPA agreements used to say that you had to inform the OR of any increased income "until you are discharged". But the new agreements issued now usually state "until the end of this agreement", and they have closed that loophole.

Hope that makes sense.

jet21

Thanks again.
This place is really helping.
Would it be acceptable before going BR to get wages paid into my mums account and pay bills out of there? Obviously mine would get frozen, but would that one of my mums cos of my wages going in?

Just one question about renting. Has anyone had experience with letting agents who could help? Some people have said they needed 6 months rent in advance, if you could provide a garantor would they still require this.
Spoke to my dad yesterday and told him what was going on. Such a relief to not have to try and keep up the pretence anymore that all is fine, I suspect he knew anyway. I dont know why I hadnt confided in him before, I guess I was scared he'd think I was a failure.

philnicandamy

jet21 wrote: »

Thanks again.
This place is really helping.
Would it be acceptable before going BR to get wages paid into my mums account and pay bills out of there? Obviously mine would get frozen, but would that one of my mums cos of my wages going in? Nope you can pay your wages into whichever account you please..so your mums account will be fine the OR will allow for that

Just one question about renting. Has anyone had experience with letting agents who could help? Some people have said they needed 6 months rent in advance, if you could provide a garantor would they still require this.
Spoke to my dad yesterday and told him what was going on. Such a relief to not have to try and keep up the pretence anymore that all is fine, I suspect he knew anyway. I dont know why I hadnt confided in him before, I guess I was scared he'd think I was a failure.

Not really any experience with renting..i'm in a housing association place & they knew about my BR without any problems...glad to hear your dad took the news well