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Hi, welcome to Just Answer. I will help you with your question.
If they have a Court order to sell the house, then yes, they can do this. However, the only point in doing this is to obtain the equity that belongs to you. If 50:50 with your wife, then only your share of the equity can be sought.
what does that mean?
can they force a sale of the property
What measures can I do to stop them from forcing sale of our house? could my wife object as this will destabilise our home and two young daughters?
Yes, they can force the sale.
If you can get your wife to buy your equity - then they wouldn't bother forcing the sale.
Does that mean I transfer the house in my wife's name
Well, actually, you could do that if the lender consented to you doing it, but whilst you have a mortgage with little equity you might find that unlikely.
if she buys my 50% I can sell my bit but all her savings would not amount to 20% of the total debt
But, more realistically, she could offer the bank the same money they would get by selling the house. Then, there is no reason to sell it.
The amount of the total debt is irrelevant. This is about stopping the house being sold, and if there is no equity in it, or she offers the value of that equity to the bank, then the Court is not going to allow it to be sold as there is no financial benefit to that happening.
do you mean our mortgage provider?
If it's the mortgage provider that issued proceedings, then yes.
if she offers the bank the same money and she does not have it. would they accept a repayment on a monthly basis as if it is part of a mortgage
Thats up to them - but they wouldn't have to, as if they sold the house, they'd get it (almost) immediately.
no the mortgage providers are good with us. the business loan which is with a different bank is the one in question
Okay - same principles apply with the bank as the lender.
so what is your advise
i owe them 206,000 on a business loan
Well, they're secured, which means you'd have to try and do a deal with them and show them there is no equity in the home.
Bankruptcy / IVAs etc will not make a difference as they're secured.
They want the equity - believing it'll pay off the debt. Maybe it wont? If not, then you need to show them that. Take away the point of doing any of this.
If it will, then you just need to reach a negotiated deal with them.
OK so if I draft a letter to say the house is worth £xxx and the equity is less than the amount owed. I can offer a lump sum of our savings that is £25,000 and I can get a guarantor - my parents - to pay £1000 per month do you think in Law terms is something that could be accepted?
Couls I ask them to consider taking off the interest which works to be £43 per day
This is something that could be accepted by them, yes. There is no legal reason they couldn't do this. Also, it might be attractive to them, as if you dont have the money otherwise, they're not going to see it in reality, and the offer of others paying, might make them take it.
And yes, to be honest, when you get to the stage of not being able to pay, you often find the first thing they'll do is abate the interest in any negotiated settlement.
The point of offering 25,000 is a huge sum for us and looks small as a just over 10% of the total debt
the banks solicitors are insolvency practitioners and are really rough or a polite word tough to talk to
Can you avoid bankruptcy?
what is your advise? should I get a lawyer to represent me and negotiate on my behalf?
It is worth at least either getting a solicitor to negotiate for you, who will be familiar with what you can "get away with" or at least a debt advisor at the CAB.
yes I would have to avoid bankruptcy at all cost
Okay - then a negotiated settlement really if your way forward.
is ,,, sorry.
excuse my ignorance what is CAB
Oh sorry, the CAB is the Citizens Advice Bureau. It's an amazingly good service, and they see people will all sorts of debt issues all the time. And, it's free to use, which you might think it means it's not as good as peraps using a solicitor, but to be honest, it often can be.
I am a surgeon who has an excellent future ahead of me and recently appointed a consultant and I know I could pay that debt
would they offer me advise if I am working
To be fair, if they can see the prospect of you being able to pay it within a reasonable time, the last thing I expect they'd want to do it look at selling the house and making you bankrupt etc as they they get very limited amounts back.
And yes, they offer everybody advice - they don't seek to means test you or anything, it's always totally free.
It's a fab service. Honestly, and you've nothing to lose by speaking to them first, ad seeing a solicitor afterwards if you wish to.
Let me know how you get on with the CAB if you use it - I'd be interested to hear your feedback.
I have to call them in the morning
will do . is there a central number for CAB ? or is it something I can Google
Okay - well I hope it all goes well for you, I'm sure it'll work out right in the end. Bankruptcy isn't often favouredb y creditors where you have the means to pay the debt but over a longer time.
You need to find your local branch - so google :)
you have been excellent in your responses
Thank you. I do hope you manage to sort this quickly, an painlessly, and I think you'll be surprised that you can do a deal and one that works for you - just make sure you stick to any deal that you do!
By the way How detailed should I give them about my financial situation. For example do I go and get my home valued
Give the CAB/Solciitor everything they need to know. A valuation would be useful, but not necessarily essential at the moment.
bank statements etc
Not necessarily statements, if you know roughly what is in them. They need a general overall picture, the minutiae of the transactions isn't needed at this stage.
My wife has other savings but this is HER money and I do not want to ask her - My parents are happy to support me and have paid and spoilt me while studying at Medical School. So If I go to my parents would they ask whats in my wife's account which she has put my name on also. But it is her money
They would ask what's in joint accounts I expect, yes.
But, you just need to make it clear you both regard it as her money. And that you agreed that at the outset presumably.
With joint accounts, there might be an issue as to whose money it really is. But this just is something you have to convince them is her money.
I hope this answers your question. If you need further information, just let me know. Please do remember to rate my answer as highly as you can.
thanks v much excellent service
Maybe let us know how it goes tomorrow. And thank you too! Good luck.