Yes thats true Brendan, sorry if i was unclear, if you dont go bankrupt i was told they will chase you for the shortfall.
They can't chase you if you are bankrupt! Debt just falls in to the pile and will be fully discharged in 3 years.
I was told by a solicitor that the bank will not write off the shortfall after a sale and will continue to chase you for it .
Why do you need to go to the UK? The Irish option is 3 years and it will cost less than UK without the costs, hassle and stress of a UK bankruptcy.
If you can meet full payments, have enough left for reasonable living expenses and the bank, OA and yourself agree it may be possible for the mortgage to remain outside the bankruptcy if it is classed as a family home. [broken link removed]Thanks all, great feedback!
So as far as I can understand, if I go Bankrupt then I will loose the house as the bank HAS to get involved and they will not do a write down. Correct?
The OA has recommended entering into an income payment arrangement with him as early as possible in the process. The maximum lenght of this would be 5 years from commencement so you could be dischaged from bankruptcy in 3 years and the income order could finish 2 years later.They will then try to get as much back as they can during the 3 year bankruptcy and possibly 5 years after that, yes?
Yes, they can't ask you to live on anything below the reasonable living expenses and accommodation allowance for your circumstances.If I am then renting and have no expenditure allowance left, then presumably they cannot get anything?
Why do you need to go to the UK? The Irish option is 3 years and it will cost less than UK without the costs, hassle and stress of a UK bankruptcy.
Bronte, how do you quantify these costs?
Steve Thatcher
Steve, I also would of been under the impression that the UK option would now be a more expensive option based on the anecdotal evidence.
Have any of your clients given any indication of the overall cost?
I think if you are coming at the bankruptcy with a warchest of more than £10,000+ to cover relocation costs, loss of earning, professional advice etc then the UK is a great option. The 1 year term is certainly very attractive. That of course excludes the emotional cost of going through such a challenging experience without family and friends.
If you are truly broke it seems that the Irish process is a good option. It should cost less than €1000 and there is the €250+vat that mortgage lenders will pay for you to meet a accountant for financial advice. more details here http://www.keepingyourhome.ie/mortgage_arrears_information_and_advice_service/index.html
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