Insolvency mortgage lump repayment

[Bill90.]

Hi everyone.

Just looking into the in's and out's of insolvency.

I'm starting from scratch trying to learn ad much as possible about it.

My parents along with many other over borrowed in 2005/6 and got destroyed in 2008. Banks sold properties. They engaged with a PIA 2 years ago, got a successful/favourable write down and have a mortgage with ptsb of about 120k which includes the family home and previous mortgages. I think they were discharged after 12 months (does this sound right?) I will ask them for the contract so I can look myself. I'll also ask for the mortgage contract.

They're happy and relieved with the outcome and paying 1000pcm on a small income.

I'm lucky to be in a position where in 3 years time I could knock maybe 50k off that for them.

I have absolutely no clue about term's and conditions of personal insolvency in general so I was looking for some advise on it.

Are they allowed to do that?

Are they allowed to have savings?

Is there clawbacks?

Basically I'm wondering is there any general pitfalls to look out for?.

Thanks for any advice.

 

[Brendan Burgess]

People often don't fully understand their own finances especially where they are complex.

They would have had to engage a Personal Insolvency Practitioner and that would be the best person to ask.

Assuming that they got a write-down of their actual secured debt...

If the house is sold before the mortgage term ends, there could be a clawback.

How exactly does the "clawback" in a PIA work?

Hi If as part of a PIA I have unsecured debt wiped by the bank and e.g. subsequently sell my PPR in 10 years time, can the bank demand the extra equity realised in the sale? Even if there had been no debt written down on that particular property? And do PIA's generally contain clauses...

www.askaboutmoney.com

But I don't know what happens if the mortgage is paid off early and the house is then sold. But this is unlikely to be relevant in your case.

Brendan