have decided to petition for bankruptcy

[michelle.l]

Hubby and I are after a very long debate have decided to petition for bankruptcy as quite a lot of our debt is with NR so basically have been told there is no point in proposing an IVA as it just wouldn't get accepted...just a quick question regarding remortgaging, as we are both petitioning for BR would we be able to remortgage after being discharged to release the equity for the OR??? And if we could remortgage would we still need to sign the house over to a third party???

[Soulgrowth]

Thanks for asking this question Michelle ... I have just asked similar, so will be interested in the reply

Debbie

[MelanieGiles]

Hi Michelle and welcome to the forum

The difficulty with both of you going bankrupt, Michelle, is that no-one is going to give you a 100% mortgage just coming out of bankruptcy, so you are unlikely to be able to borrow sufficient to clear the equity required by the Trustee.

This works better when just one party goes bankrupt - as there is only half of the equity to find.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[michelle.l]

Thanks for replying so quickly Melanie...another option out of the window then!!!

Michelle

[catullus]

Before you do this michelle have you thought about talking to NR to see whether they would support an IVA? Statistically they reject about 90% but the main reason they do this is that they do not believe that people will actually go bankrupt and will come to some other arrangement like DMP etc.

If you really have reached this decision (and I don't know your detailed circumstances so I can't tell you that it is the right one) you just might well be able to persuade NR that they have everything to gain from supporting an IVA.

The only reason that you would do this is if you really don't want to go BKR but if you're cheesed off,really don't want to speak to NR and see BKR as a new beginning, you're probably doing the right thing.

[MelanieGiles]

Ever the optimist Catallus!!!



Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[catullus]

That's me!!

The other thread about omitting NR from a proposal was interesting. It's one way to get an NR IVA through, I suppose,but not one I'll be adopting.

Interesting this is, assuming this isn't an isolated case. just how many are out there where NR are being preferred over other creditors?

We need to know!!

[michelle.l]

Thanks Catallus for replying...we do owe NR quite a lot of money we have a together mortgage, and 2 personal loans with them...
...this is why we were advised that the best route probably is bankruptcy. To be honest we have discussed and discussed this and feel it is probably the best way forward, just really fed up now and want to make a clean break!

We are going to ask my parents if they are able to loan us the equity on the house to pay to the trustee...hopefully they will!!!

Have made an appointment for 4th September for bankruptcy hearing...just really embarrassing, but hey ho!

Kind Regards
Michelle

[MelanieGiles]

Catallus

I suspect that it is widespread. Voting representatives need to be made aware to check carefully any proposals with mortgages with this company where the payments look suspiciously high.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[catullus]

Best of luck Michelle.

Melanie, I agree, but it doesn't say much about NR's ethics does it?? ( I don't expect you to reply!!)

[MelanieGiles]

Well they cannot be blamed for not joining in if they have been deliberately excluded! Gift horses and mouths spring to mind!



Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Adam Davies]

Hi
Can you imagine the consequences for IPs if they have allowed this to happen and if it comes to light? Infact what about the consequences for the whole industry if it is widespread ?
I,m going to name it Northerngate in readiness !!


Regards
Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[MelanieGiles]

Just goes to show - there are good and bad in each profession.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[thebear29uk]

Hi all

I keep seeing posts on here from people with Together mortgages from NR. Is this a good product or a recipe for disaster? Loaning somebody a secured amount for their house and an unsecured element to a combined amount of up to 125% LTV surely is overstretching people's finances. Maybe I'm missing the point here but unless somebody is buying a property in an area thats going to increase equity rapidly (and which of us can truly predict that) people will be burdened with that debt for years to come.

If I'm missing the point I'm sure somebody will advise me but as I see it maybe they should come with a health warning.

Regards

Dave

[jane.l]

we have a Together mortgage, I don't think it was a bad thing, our stupid mistake after that was getting another secured loan from Picture on top of that!!

We bought our house for 84,000 in 2004. Because of the Together mortgage, in 2007 we needed £113,000 to clear that, and the house was actually worth about £116,000 as prices had risen in that area, so really we would have been ok, it was just the fact that we got a secured loan on top of that for £35,000, which did plunge it into negative equity! Its our own stupid fault, I know, but I just cannot understand why on earth Picture lent us the money, they knew the house was already mortgaged at 120% and its value.

We were just desperate and did not know what to do, NOW I know we should have looked at an IVA at that point in time, but I did not really know anything about them and just kidded ourselves that things were fine and we could pay everything