Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Lisa oneill
    • By Lisa oneill 11th Oct 19, 10:31 AM
    • 2Posts
    • 0Thanks
    Lisa oneill
    Will they sell my home
    • #1
    • 11th Oct 19, 10:31 AM
    Will they sell my home 11th Oct 19 at 10:31 AM
    I jointly own a house with my husband. My husband has a HMRC debt which we have offered to pay back monthly but they rejected, we then applied for an IVA which they also rejected, they have now made my husband bankrupt and we have been told they are going to sell our house to get my husbands half of the equity. We have 3 children under 18 and will be made homeless as the price of rentals in our area are way out of our price range. Our mortgage is £550 per month but a 3 bedroom house rental is around £1000. Iíve been told lots of different things. 1 being it will have to go to court and a judge will decide if they can force a sale. Can anybody give me some advice as to what I can expect to happen .
Page 1
    • Minkym00
    • By Minkym00 11th Oct 19, 1:18 PM
    • 219 Posts
    • 87 Thanks
    Minkym00
    • #2
    • 11th Oct 19, 1:18 PM
    • #2
    • 11th Oct 19, 1:18 PM
    Firstly the OR needs to establish roughly how much equity is in it.


    They will then hand over trustee status to an Insolvency Practitioner. The first thing they will do is get a true picture of the equity by having the property valued and obtaining the redemption figure from the mortgage company. You can expect this to take a month or so.


    Assuming there is enough equity in the property (min £10k) for HIS BENEFICIAL SHARE (you get to keep yours) then they will proceed with the sale. If there is less than £10k they will probably opt for a charging order instead.


    If you dig your heels in the IP will have to obtain a possession order at court, again this can all take months. You would probably have a year from start to finish if you're lucky.


    The best way to deal with this, if at all possible, is to find a family member to make an offer to buy out your husband's beneficial interest.


    Will the beneficial interest clear your husbands debts (assume £20-25k of fees will go to the IP)?
    • debt doctor
    • By debt doctor 11th Oct 19, 7:58 PM
    • 4,538 Posts
    • 6,228 Thanks
    debt doctor
    • #3
    • 11th Oct 19, 7:58 PM
    • #3
    • 11th Oct 19, 7:58 PM
    Hi,

    'Home rights' will prevent a sale of the property until after 1 year has passed.
    DD
    Debt Doctor, Debt caseworker, Citizens' Advice Bureau .
    Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***
    • ACG
    • By ACG 11th Oct 19, 8:08 PM
    • 19,607 Posts
    • 11,168 Thanks
    ACG
    • #4
    • 11th Oct 19, 8:08 PM
    • #4
    • 11th Oct 19, 8:08 PM
    How much is owed? Are you able to raise the money by doing a secured loan or something? Or can you save up between now and when it goes to court and offer to make a lump sum payment with the rest to follow monthly?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Lacemaker
    • By Lacemaker 12th Oct 19, 6:48 PM
    • 42 Posts
    • 146 Thanks
    Lacemaker
    • #5
    • 12th Oct 19, 6:48 PM
    • #5
    • 12th Oct 19, 6:48 PM
    Hi Lisa,

    Speaking from a purely professional perspective , I note that you mention having three children .
    Generally speaking, minors' rights take precedence for one year post bankruptcy. This means that in most circumstances where children live in the property the trustee will not exercise their right to seek an order to sell or repossess a family home during the first twelve months. Occasionally the IP may start the process towards the tail end of the twelve months.


    Hopefully, this interval gives a little bit of time to recover a bit and reassess.

    L
    • Lisa oneill
    • By Lisa oneill 17th Oct 19, 7:22 PM
    • 2 Posts
    • 0 Thanks
    Lisa oneill
    • #6
    • 17th Oct 19, 7:22 PM
    • #6
    • 17th Oct 19, 7:22 PM
    We are already at the stage of the insolvency company valuing our house the equity is 60k, 30 of that being mine. We want to fight it as we canít rent and I run a business from home so I will lose my business and 3 children under 18 will be made homeless. We can afford to pay it back over 5 years but not immediately. How can they make children homeless. This is what I donít understand
    • Lacemaker
    • By Lacemaker 18th Oct 19, 7:40 AM
    • 42 Posts
    • 146 Thanks
    Lacemaker
    • #7
    • 18th Oct 19, 7:40 AM
    • #7
    • 18th Oct 19, 7:40 AM
    Lisa,

    How long ago was the Bankruptcy Order and how old are your children ?

    L.
    • ACG
    • By ACG 18th Oct 19, 8:59 AM
    • 19,607 Posts
    • 11,168 Thanks
    ACG
    • #8
    • 18th Oct 19, 8:59 AM
    • #8
    • 18th Oct 19, 8:59 AM
    Speak to a mortgage broker who is WELL qualified in bad credit.

    There may be an option for a mortgage (albeit potentially a higher rate) or a secured loan.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Brock_and_Roll
    • By Brock_and_Roll 18th Oct 19, 9:05 AM
    • 1,002 Posts
    • 1,003 Thanks
    Brock_and_Roll
    • #9
    • 18th Oct 19, 9:05 AM
    • #9
    • 18th Oct 19, 9:05 AM
    We are already at the stage of the insolvency company valuing our house the equity is 60k, 30 of that being mine. We want to fight it as we can’t rent and I run a business from home so I will lose my business and 3 children under 18 will be made homeless. We can afford to pay it back over 5 years but not immediately. How can they make children homeless. This is what I don’t understand
    Originally posted by Lisa oneill
    With all due respect......

    We want to fight it as we can’t rent

    Why not? You will have £30k in the bank and can pay a year up front if needed

    I run a business from home so I will lose my business

    Why? presumably this only involves a spare room and a printer rather than a fully fledged production line.

    If I were you I would focus on the kids angle. HMRC are there to protect the public purse (i.e. my money) - we would all expect them to realise your OH's assets unless there is a good reason not to.

    As outlined by others, simplest solution is to find a family member to buy the OH's interest....then you can pay them back over 5 years instead of paying HMRC.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

2,631Posts Today

8,214Users online

Martin's Twitter