What will my mortgage provider do if I go bankrupt?

Steve Thatcher said:
You have a valid point, but it may not just be the cost of getting the bankruptcy order I am referring to. You are having to live on allowances for three years which are very tough. All extra money goes to your creditors. Then there is the potential 5 year income payments agreement. For some people this all needs to be factored in.

I accept that this is not all clear, but costs are sometimes more than the initial fee

Steve Thatcher
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Do they have published living expenses in the uk like we have here?
I know the accommodation would vary greatly depending on area but I'd imagine food, clothing, transport allowances are the same everywhere.

The OA has said he would like people to enter the income payments agreemnets as early as possible therefore the majority of it should be when you are in the bankruptcy. Is this the same in the uk?

I think an updated comparison of Irl -v- uk costs and allowances would be a great idea now that we have a bit more of an idea how this side works. I think I read an excellent comparison you did before but it was based on the old system.
 
pat2 said:
Do they have published living expenses in the uk like we have here?
I know the accommodation would vary greatly depending on area but I'd imagine food, clothing, transport allowances are the same everywhere.

The OA has said he would like people to enter the income payments agreemnets as early as possible therefore the majority of it should be when you are in the bankruptcy. Is this the same in the uk?

I think an updated comparison of Irl -v- uk costs and allowances would be a great idea now that we have a bit more of an idea how this side works. I think I read an excellent comparison you did before but it was based on the old system.
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Food is £275-£300 per person on average
Clothing £42 per person
Transport as is, A car is allowed of required upto £15000
Holidays are allowed at up to £80

In UK you also have to have income payments put in place within 12 months, if not in place then they can never come after you.

UK petition fee £700

Obviously it is possible to do it yourself as in ireland

Steve Thatcher
 
Regarding the £250 costs paid by lender for accountant, this appears to only apply if you are offered a long term alternative arrangement such as a split mortgage. This allows you to get a better idea of the overall cost of that arrangement.
It apparantly does not apply in the case where they are refusing to offer an alternative arrangement either due to lack of contact from lendee or mortgage is deemed unsustainable and you now have the option to sell or surrender.
I had assumed it would apply at either point-but apparantly not. We are now out of MARP process as lender decided not to offer us an alternative arrangement and will be taking legal action in next 3 months unless we make a decision as laid out by them. I would have thought an accountant at this point might have been helpful. But apparantly we are past that. An accountant a year ago might have been helpful too. But apparantly we were not in need then because they refused to offer us any long term solution.
Great system. Round of applause. I hope the people who put the code together are really proud of themselves.
 
Steve Thatcher said:
Bronte, how do you quantify these costs?

Steve Thatcher
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It costs about 5K with people like you to go bankrupt, then the person needs a deposit in the UK, rent and living expenses. As far as I can tell people are going over there with a 'war chest' to see them through the year. Others I'm guessing are staying on relatives couches, some probably are not really there at all and will have flight costs, and others will have signed on in the UK.

The Irish option is cheaper always because you're in your home country and have more options, dole is better in Ireland, you have relations if necessary to stay with, fees are less than 1K (or will be when the advertising cost is removed).

Personally if it were me, I'd do the sharp, painful, short, clear, precise UK option. I'd say about 20K would do that. But problem is most people don't have that. Others of course do, hidden money, or money from rentals saved up, or spouse having money etc. You know all this far better than I.
 
pat2 said:
there is the €250+vat that mortgage lenders will pay for you to meet a accountant for financial advice.
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Did you go down that route? Personally I thought that option was one of the more hare brained schemes that is designed not to solve anything but to create money for professionals. And I believe the take up response has been abysmal.
 
Bronte said:
Did you go down that route? Personally I thought that option was one of the more hare brained schemes that is designed not to solve anything but to create money for professionals. And I believe the take up response has been abysmal.
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No I haven't done it yet, I wasn't aware of it until recently. I will make use of it if there is something I'm unsure of. I wouldn't agree that it's hare brained in theory. If people were being asked to make serious decisions without any access to professional advice there would be uproar and rightly so. I can't comment whether the advice they give is appropriate or worthwhile. I read somewhere recently that less than 1% of applicable people have availed of it.
 
No it's not Pat. The bank gives you options, your accountant may explain the options to you, but he cannot give you any advice or suggest you negotiate or refuse the banks options.

It's a total nonsense, we debated it here on AAM ages ago.
 
Bronte said:
No it's not Pat. The bank gives you options, your accountant may explain the options to you, but he cannot give you any advice or suggest you negotiate or refuse the banks options.

It's a total nonsense, we debated it here on AAM ages ago.
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Hmmm, sounds more like an interpretation service than advisory!
 
That's exactly what it is Pat2. But don't rely on me. In any case what did you expect, something that actually worked ! Or even something that was of benefit to distressed people. Or more accurately a complete waste of time and money.
 
DebtCert said:
It is being reviewed with a proposal to expand the scope of the service:

http://www.welfare.ie/en/downloads/MAIAS-Review-Report.pdf
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That's lovely stuff DebtCert. I think the figure of 100 people availing of the 'service' tells it's own story. And they need 44 pages to figures out something is wrong ! All these reports, and different departments, legislation that took 2 years, has had to be changed at least 3 times already.

I wonder how much it cost to produce that little report.

Why didn't they just copy British law word for word, and set up a similar service that is easily accessible and cheap, and one that actually works.
 
Bronte said:
Why didn't they just copy British law word for word, and set up a similar service that is easily accessible and cheap, and one that actually works.
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Because the PIA is the first legislation in the world which facilitates the insolvent person retaining their family home.
 
Tackling the issue of mortgage arrears would be ineffective unless provision is made for dealing with mortgage-related insolvency, hence the need for the legislation to include secured debts.
 
Bronte said:
And why did we do it differently? Does it make sense?
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I don't really think so. In every other country, if someone falls into arrears on their mortgage, the home is repossessed and sold.

But let's not take this thread off topic. Feel free to start a new thread on it.
 
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