House due to be repossessed. What's the best option?
Discussion
anonymous said:
[redacted]
Tonker is, of course, spot on.The main tax differences between a Buy To Let operration and a bona fide trading business is that trading operations are allowed much more flexible useage of any trading losses that may be generated compared to the limited things you can do with an annual loss generated from rental activities. Also, business can claim Capital Allowances (some of these are very generous) on assets used in the business. Rental operations ,again, are far more limited in the allowances on capital expenditure.
The one exception is the way UK based Holiday Lets are taxed. They are currently taxed much more like a business than a rental operation. Labour had fully intended to remove this distinction and put UK Holiday Lets on the same footing as ordinary Buy to Lets. The Coalition has scrapped Labour's original plans but they have muttered that changes of some sort are in the offing. Watch out for such changes in next year's budgets.
James P said:
Road Pest said:
Mortgage arrears can't be cleared by a bankruptcy. If there is a shortfall from repo then they will come after you for the cash.
Err, wrong. Bankruptcy deals with pretty much all unsecured debts. Notable exceptions are CSA payments and Student loans.OP YHM
ETA I've very recently investigated this with a close family friend who has been a Solicitor for years. The debt owed to a building soiety cannot be written off through bankruptcy. I very much doubt that the lender would agree to making the debt unsecured and then the courts allow a bancruptcy.
Edited by Road Pest on Thursday 28th October 18:43
Road Pest said:
ETA I've very recently investigated this with a close family friend who has been a Solicitor for years. The debt owed to a building soiety cannot be written off through bankruptcy.
I would expect Bankruptcy to write off the debt, default and repossesion would not. Hopefully Eric or others could clarify.background for people that don't know what happened
http://www.pistonheads.com/gassing/topic.asp?h=0&a... that's ****ed it......explosion in the garden&mid=24732
good luck matey you don't need this on everything else!
http://www.pistonheads.com/gassing/topic.asp?h=0&a... that's ****ed it......explosion in the garden&mid=24732
good luck matey you don't need this on everything else!
grumbledoak said:
Nicol@ said:
I think something similar may be going on with my landlord.
Both too dumb to set up mail redirection with the Post Office!You should maybe do some googling, or speak to CAB, as I think you can get turfed out pretty quickly if the Landlord defaults.
And Emsman, get this sorted! Phone the mortgage company! Best of luck.
Road Pest said:
Jobbo said:
Tonker, I am pretty certain that is not correct and such a 'loophole' does not exist.
If it did then everyone would be doing it in that situation! Unless I've put too much faith in my solicitor and in which case I'd love to hear of an example case study.smartie said:
Road Pest said:
Jobbo said:
Tonker, I am pretty certain that is not correct and such a 'loophole' does not exist.
If it did then everyone would be doing it in that situation! Unless I've put too much faith in my solicitor and in which case I'd love to hear of an example case study.
t" card that she played.Although it would write off the debts, bankruptcy isn't something to be taken lightly in a "can't give a sh!t" fashion. It can have lasting effects on employment, housing and credit for a minimum of 6 years and often quite a bit longer. It's a useful tool for a fresh start where unmanagable debts could cripple someone for a lifetime, but it needs careful consideration and should be very much a last resort. I believe it is a neccessary option to be available to all in a modern society so someone who has mucked up isn't punished forever, but I do feel it is often miss-used at the moment. (and don't get me started on telesales for IVA's!!)
Mortgage applications often ask if you've EVER been bankrupt, so although it would fall off a credit file in 6 years and you would appear clean to anyone searching, you would still need to declare.........
Mortgage applications often ask if you've EVER been bankrupt, so although it would fall off a credit file in 6 years and you would appear clean to anyone searching, you would still need to declare.........
Road Pest said:
James P said:
Road Pest said:
Mortgage arrears can't be cleared by a bankruptcy. If there is a shortfall from repo then they will come after you for the cash.
Err, wrong. Bankruptcy deals with pretty much all unsecured debts. Notable exceptions are CSA payments and Student loans.OP YHM
ETA I've very recently investigated this with a close family friend who has been a Solicitor for years. The debt owed to a building soiety cannot be written off through bankruptcy. I very much doubt that the lender would agree to making the debt unsecured and then the courts allow a bancruptcy.
Edited by Road Pest on Thursday 28th October 18:43
anonymous said:
[redacted]
But if they get an order for repossession, enforce it and evict the person from the property then the person bankrupt has lost the house. If someone is bankrupt and owns a property and there is either very little equity or a deal is done with the trustee to buy the equity then the house can be kept although subject to continuing to pay the mortgage.
The distinction between a home and any other property is that a trustee must deal with an interest in a home owned at the date of bankruptcy(occupied by the bankrupt or spouse/ former spouse) within 3 years otherwise it reverts to the bankrupt and the trustee gets to dust off his PI policy.
smartie said:
Mortgage applications often ask if you've EVER been bankrupt, so although it would fall off a credit file in 6 years and you would appear clean to anyone searching, you would still need to declare.........
If they search the archive of the London Gazette, the bankruptcy would be found regardless of what is on the credit file now.Looking around I think I've spotted where I got confused. A secured debt can't be included in Bankruptcy but a shortfall after repossession can. Really struggling with the fact my solicitor told me otherwise. Interestingly the bits I was reading said that the lender can't go after other possessions either, so if there is a second property then they'd not go after that? Perhaps someone can confirm?
Road Pest said:
Looking around I think I've spotted where I got confused. A secured debt can't be included in Bankruptcy but a shortfall after repossession can. Really struggling with the fact my solicitor told me otherwise. Interestingly the bits I was reading said that the lender can't go after other possessions either, so if there is a second property then they'd not go after that? Perhaps someone can confirm?
The lender is not entitled to possessions but if anything is left in the property then it will be cleared by the bailiffs. Anyone being evicted will be told this beforehand.Lenders can only go for properties that they hold as security so if there is a second property they cannot go for that unless they also lent against it.
A trustee in bankruptcy is responsible for the whole estate which includes all properties. If it is not the home of the bankrupt/ spouse eg investment properties or a holiday home, then the three year rule for dealing with it does not apply and neither will the Court prevent the trustee from dealing with it within the first year.
Insolvency Lawyers are quite rare and charge accordingly
Solicitors in general practice are unlikely to have that much direct experience. I am an Insolvency Practitioner rather than a lawyer and find that there is not much that is worse than someone being in a position where it is possible that they may lose their home and being badly advised. Gassing Station | Finance | Top of Page | What's New | My Stuff