Thinking about Bankruptcy

[Rainbow]

Hi All

Still have not heard anything from GT when our creditors meeting is in fact still haven't had the draft proposal and they have had all information on 1st May!
I have been reading the posts on the forum and now we are wanting to have a back up plan incase the IVA doesn't get accepted.

My question is reagarding our house we currently have mortgage of £137K with a secured loan of £50K until 2012(I think) the house is valued at £199K, if we went BR how much would we have to raise to keep the house? and would we be able to keep our exisiting mortgage or find another?
Thanks in advance
Rainbow

[MelanieGiles]

Hi Rainbow

In bankruptcy your beneficial interest would be caluclated by taking the current value, and deducting the prior charges. So this leaves you with equity of £12,000, which would be divided equally between you and the co-owner - therefore £6,000 each. You would have one year to raise the money from friends or relatives, to avoid possession proceedings being taken against you. In the meantime, so long as you kept paying the mortgage and secure loan, there should not be a problem in you remaining in the property.

Hope it doesn't come to this for you!

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
Chase them,8 weeks is too long.
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

[Rainbow]

Thanks very much for the info Melanie, and we hope it doesn't come to this, intially were very confident with GT and they were also confident so thought all would be well but its the length of time its taking!!

I have chased them Andy - Just got told it will be 3 weeks to draft proposal that was last week!

So will try again next week if it doesn't arrive but I guess the postal strike will have an impact now!

Rainbow

[louiseh]

I had exactly the same problems with GT. Initial call begining of Feb, proposal received end of May, creditors meeting date begining of July. Hope that gives you an idea of GTs real time scales.

[Rainbow]

Thanks for the info Louise, do you regret going with them now? Did you make interim payments we were told not to - Did your creditors continue to hassel you - I don't think GT have written to ours? Are you dealing with the Belfast office? Sorry to ask so many questions.

Thanks
Rainbow

[louiseh]

I made token payments of £5 for the first 2 months but then stopped as it made no difference as to the amount of hassle I got. I am using the Belfast office. I wrote to all my creditors several times updating them with the situation and Like you I got the impression that GT had not contacted them. Only after phone calls at work did they contact one creditor. There may have been other contact but I can only say it has definately occured since my proposal has been sent out, as creditors have acknowledged this. Most phone calls have stopped apart from Mercers (barclaycard). Hope this helps.

[louiseh]

Do I regret using them? I feel a lot more relaxed now that my proposal has gone out, they do seem to have a good sucess rate, so I suppose if I get the right result, then no I don't regret it. If I'm back to square one by next week it could be a different matter as at the back of my mind I think I could have gone bankcrupt 5 months ago and be almost half way to being discharged.

[Rainbow]

Thanks - Good luck for next week.
How many contact names have you had since you started the process with them? I do feel that unless I contact them they don't contact me. The only reason why I stuck with them was because others including the experts said that they are good. Lets hope so for both are sakes. I had a bad experience with Kevin (who was acting as nominee) but Nancy is lovely and now I only contact her and she passes on the messages for me.

As I said good luck for next week I'm sure all will be fine.

[louiseh]

I have had three in total, initial phone call contact, person dealing with my queries and then someone drafting my proposal, I expect it will be someone else if all goes well next week. I must say that they have all been helpful even though they are obviously busy. I hope things go well for you also, and hopefully quickly, the worst part for me is not the phone calls etc, its the waiting for the outcome.