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Get Out of Debt! It's never too late and you're only a phone call away from taking action Debt and Your Home If you fail to repay secured loans against your property (e.g. mortgage or home owner loans) you could be repossessed. Is Repossession inevitable? Bear in mind that lenders do not want to go to court and repossess your property for 3 reasons - 1) it involves time and money on their behalf 2) They risk the negative PR associated with throwing people out on the street and 3) They would have to re-sell your property through auction at a significant discount (that's why they insist on a deposit when you apply for a mortgage). If you face repossession remember that in the vast majority of cases you can solve what appears to be an apparent "crisis". Without a doubt, the most important thing to do is do something, procrastination will force the lenders to take action on you. Avoiding court action * Talk to a licensed debt advisory service such as London United Developments who specialize in this area. Such companies work to restructure your debts and, importantly, will take over all the correspondence with your lenders. * If you want to stay in your home but are unable to manage your debts, you can consider what is known as "selling and renting back" your home (or more commonly as a "rent back".) Aren't rent backs exploiting the vulnerable? From unscrupulous providers, yes. Make sure that whoever you do business with, you work on a "global settlement" - ie a solution that deals with your debts and your home at the same time. Be wary of rent back solutions that offer to buy and rent back your home without any due consideration to your outstanding liabilities. In this instance you may find yourself without a home and still steeped in debt. Ethical rent back solutions A good provider will work alongside a qualified and experienced debt advisor as a team to both settle your debts and keep you in your home. They will charge you a "market rent" rather than a subsidy. If they are charging a lower than market rent then it is likely that they have plans to remove you from your home as they will be unlikely to subsidize your accommodation long term. At market rent, a provider can always find a new tenant if you choose to move on in the future. Bankruptcy You probably think there is no available solution to you apart from declaring yourself bankrupt. You've probably been advised by a "mate" that it'd be a simple solution to something that appears very complex. There are a number of points to take on board regarding bankruptcy. There's no free lunch If it was that easy, everyone would be doing it. No creditor is likely to give up on your debt without a fight. Declaring yourself bankrupt means that you could be stripped of not only your home and assets, but also your pension and your ability to work freely for up to 15 years. Your creditors will go after the money Being bankrupt does not mean they will give up. If you had paid monies to friends, acquaintances or dispersed assets before bankruptcy the creditors have the right to challenge those people for the money. Bankruptcy does not mean the buck stops with you and the official receiver, your creditors could be taking your family and friends to court to recover money or assets that you once gave them. Bankruptcy can mean they can reverse the sale of your house In some circumstances the receiver can reverse the sale of a property that occurred prior to bankruptcy. This means if you sell your house to pay of Peter and leave Paul's debts unsettled, Paul could argue the reverse of the sale meaning not only the situation is back to square one, you could be a lot worse of once you've factored in legal charges Bankruptcy should be avoided at all costs There are options available to you and, remember, there are always people a lot worse of than yourself. You should seek advice from a qualified & licensed debt advisory service such as London United Developments who specialize in this area and have an excellent track record in reversing seemingly unresolvable situations. |
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