Discharged bankrupt situation.

paulgee

Registered User
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Imagine a situation where a family home is in special measures with PTSB. A genuine perfect-storm hit a family.

One parent a discharged bankrupt. That parents half of the family home is with the OA and is due for valuation possibly next year which may or maynot show a small equity. The mortgage with PTSB has a 50% warehouse and the other 50% is fully perfectly serviced.

Now if the financial situation improved slightly and the family are now in a position where they may be able to pay a little more, how can they do it as it is a double edged sword. If they pay a little more, it reduces the balance, but by reducing the balance they increase or cause equity, which then would have to be paid to the OA at re-evaluation. So literally, if the family could pay a theoretical 2 thousand extra in 12 months, that could trigger a bill of 1 thousand (2 thousand equity / 2 as only one of the parents was bankrupt.)

Also, as the ex-bankrupts half of the home is now with the OA, are they even in a position to talk to the bank ? Will the bank say they are not a party at present? And if they did, would it go back to the OA who could possibly think there is monkey business going on here.

It is an unusual situation where if someone wanted to pay more, as they should, it would blow up in their faces. With all the talk about mortgage sales by PTSB, no notifications have been issued to the family so it is assumed there is no sale on their mortgage.
 
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