If a PIA can't be agreed

[Confused83]

Hi

My husband had intended to file for bancruptcy early last year. Due to internal issues in the solicitors our completed paper work wasn't filed.

We then had to get another letter from an insolvency prationer who said due to both of us having received a small pay rise this means we have to have a PIA but with very little left a month to pay this off a month.

We have a split mortgage I negotiated and the debt is soley in my husbands name to revenue and rates and Pre existing management fees on our residental home Pre dating our marriage.

From what I have all the above debts are excludeable. We have a new managment company who have said they won't engage in personal insolvency agreements.

Our PIP has said the recent ruling regarding treatment of split mortgages may impact us. My question are below if any one could advise:
- If we can't get 65% of credits to agree to a PIA does he automatically become eligible for bancruptcy irrelevant of income.
- If he files for bancruptcy are managment fees automatically included irrelevant of the managment company position?

 

[TLO]

- If we can't get 65% of credits to agree to a PIA does he automatically become eligible for bancruptcy irrelevant of income.

Yes.

- If he files for bancruptcy are managment fees automatically included irrelevant of the managment company position?

Yes, but you might also be liable if the property is in both names.

Your PIP should try for a "no veto" PIA on behalf of both of you. It's quite a process, but if it is properly prepared it will take care of everything, including the split mortgage. The management company is entitled to vote no at the creditors meeting but if the Judge approves the "no veto" PIA then they are legally obliged to go along with it's provisions.

 

[Jim Stafford]

The management company is entitled to vote no at the creditors meeting but if the Judge approves the "no veto" PIA then they are legally obliged to go along with it's provisions.

As the management company is an "excludable" creditor they will not participate in any type of PIA (unless the PIA called for the sale of the property and allowed the management company fees to be paid) and this they cannot be "crammed" down, even in a "no veto" PIA.

If your husband filed for bankruptcy he would no longer be personally liable for the management company fees. However, the fees would still stay "attached" to the property if their documentation was well drafted.


Jim Stafford

 

[Confused83]

Thanks for your replies. The property isn't in both our names. His soley and I'm not named on the mortgage.

To be honest Im so at the end of my tether with it all I'm trying to get loan and offer a settlement to Revenue That will leave our split mortgage in tact and the management fees to try to sort.

I don't know if I can go through another 6 years old being in this process. My husband cant borrow and while it technically isn't my debt. I don't know what to do for the best as we will struggle to repay the loan but Im terrified Of the process and potentially losing our house.

 

[TLO]

If you wish, it might be useful to provide full details using this post as a template:

http://www.askaboutmoney.com/thread...arrears-and-negative-equity-questions.170704/

Posters might then be able to provide more pertinent advice. Having said that, and from what you've said so far, your husband going bankrupt may not be the best move as the property is solely in his name. It is easier for a couple with a jointly owned property to retain it whilst one person goes bankrupt than it is for a bankrupt sole owner to retain a solely owned property.