|
|
| The independent answer to your debt problems | login join |
|
Boohoo
| 04-09-2007 09:09 PM |
|
Joined: 04 Sep 2007 Posts: 1 | I have a home visit this week re Sequestration/Trust Deed. Cannot eat cannot sleep with worry. I have mortgage and a second charge neither which have defaulted and are up to date. There is no equity in property in fact if house sold there would not be enough to pay off mortgage and 2nd charge approx 10 grand short. Does anyone know what will happen to my home I have 25 grand of unsecured debts that are the problem. If anyone has an answer please let me know1 |
| DW George | 04-09-2007 11:24 PM |
|
Joined: 01 May 2007 Posts: 401 My Profile | Hi Boohoo. What happens to your home will depend on how much disposable income you have and who the creditors are. If, over a three year period, you can return a satisfactory dividend to the creditors then your house will be safe. What will happen at the end of a Trust Deed is that your house will be re-assessed and any equity may be required to be realised. Your IP will talk you through this. Dividends are calculated by multiplying your monthly disposable income by 36, subtracting the IP fees and then dividing the total figure by the debt. The final figure will then be multiplied by 100 to give a percentage - the dividend. Fees can range from £3k upwards depending on the complexity of the debts. Worked example Some creditors are demanding higher dividends. Your IP will be best placed to advise you the likelihood of your Trust Deed being successful. I hope I have been clear about what may happen. It is quite difficult to give definitive answers without knowing all the financial details. You have taken a positive step in dealing with your debt problems by organising to see an IP and by posting here. You make make sure that you are happy with the IP. Ask questions of them. After all they will be managing your finances for the next three years. Good luck. If you have any other questions then just post here. We'll try and help George |
|
teapot
| 29-04-2009 03:03 PM |
|
Joined: 28 Apr 2009 Posts: 4 | Hi, We are in a negative postion of £90k on 2nd secured loan on the House. My 1st the Mortgage have sent us the4 final demand, and am awaitng a court date. The house is on the market and if sold would cover the Mtge, however would leave us short for the 2nd charge of £90k appx. As we also have 54k unsecured debt, Bankruptcy is the option. As we have no equity in our house, want would happen at court and can we keep our house, and not pay the secured creditors? Thanks |
|
FeeFee
| 28-05-2009 02:35 PM |
|
Joined: 22 May 2009 Posts: 3 | Hi there - this is the same position as I am in; so look favourably for someone to respond to last posting. I am in the same position - caused by circumstance of husbands business failing (building) and that of the downturn in house value market. have morgage arears but to be fair the company have been working with us although to fair again dont know for how much longer! I am working full time - but not enough income to sustain mortgage and loan and council tax every month. very little in benefits as they have advised hubby will not recieving - plan to go to CAB though for this and of course i live in a mortgaged property. If my home is repossed - just out of curiosity - what happens between the mortgage and loan company - do they just battle it out between them who gets what? If I managed to sell the property it may cover only the mortgage amount outstanding so what happens to the shortfall on the loan - you previously indicated that it would then be turned into non secured debt, therefore adding to my others which I have a DMP for - would it be best at this time to enter a trust deed or do you thisnk bankruptcy is the best option and at what time is the best time to apply for either - sorry if this sounds confusing - know what i want to say in my mind (which is swirling) but dont know how best to out it across! regards |
| paladin | 28-05-2009 03:53 PM |
|
Joined: 06 Jun 2007 Posts: 225 My Profile | Hi FeeFee If your house is about to be repossessed then any shortfall will be converted into an unsecured loan. The mortgage company has first dibs on the equity and if there is any left the secured loan company will take what's left. In terms of timing, if your house is repossessed after bankruptcy or Protected Trust Deed then you'll have to find the money or make arrangements to pay it off. If it is repossessed before bankruptcy or PTD then the shortfall will be included in it and consequently written off. P |
|
FeeFee
| 29-05-2009 12:50 PM |
|
Joined: 22 May 2009 Posts: 3 | thanks - on another note. If I received a notice of payment charge from another creditor and it subsequently started bankruptcy proceedings - just for saying sake that I was maintaining payments in my mortgage and secured loan - no other assets - if I have no equity in the property - (which in this climate I have probably lost any equity I did have) - cant sell the damn thisn anyway):)would the house be taken from me as I can remember reading that this is not always the case as there is nothing to be gained in selling it? regards |
| DW George | 29-05-2009 03:34 PM |
|
Joined: 01 May 2007 Posts: 401 My Profile | Hi FeeFee Bankruptcy is not about punishing you it is about ensuring that the creditors getting a fair return from on what you owe them. So if it would not be fair for you to owe them £25k and have that in equity in your house. However, if you don't have any equity in your house then there is not point in the Official Receiver demanding you sell your house - no gain for the creditors! Hope this clears things up. If not just ask. George ps Could you start another thread if you are going to ask something different. It means that new visitors don't need to search about for answers to similar problems. |
