in bank/credit union trouble need advise

[limerickman1]

is the family home proctected . i entered a business 8 years ago as a younger man not really knowing what i was doing singed all sorts of personal guarantees with bank and credit union the business is now gone 12 months and i am blue in the face from trying to come to settlement terms from the bank. what i need to know is , is my family home safe it was never put as security and is already mortgaged to 70% of its value
the loans total 500k plus and there is no business i have no assets only the familty home. ive 3 small kids and my wife to support on my income of 65k , i have tried evertything to come to some deal with the banks (sold off assetts paid them what was left etc and offered a lump sum from myself and still i am getting nowhere. ) my solicitor who never returns my calls says i can do nothing only let them take proceedings on me. is there anyone out there that has gone through or knows someone who came out the otherside. this is causing huge stress on our home life and we are worried sick . although this does not matter the business failed due to a partner doing nothing and letting it happen i was an indiviidual trying to help out a family member (never again)

 

[cartman1]

Hi Limerickman1,

I don't think the bank can repossess your house if you didn't offer it as security. If you signed personal guarantees with banks or suppliers then they can seek a judgement against you on foot of that guarantee. If they are successful then they can put a charge on your home, which means that you can't sell it for 12 years without first discharging the debt. They can also seek to get a court to put in place an instalment order, but that depends on whether you have a regular income or not. I hope that's of some help.

 

[mf1]

Hi Limerickman1,

I don't think the bank can repossess your house if you didn't offer it as security. If you signed personal guarantees with banks or suppliers then they can seek a judgement against you on foot of that guarantee. If they are successful then they can put a charge on your home, which means that you can't sell it for 12 years without first discharging the debt. They can also seek to get a court to put in place an instalment order, but that depends on whether you have a regular income or not. I hope that's of some help.

Not strictly true. Technically, a bank can place a Judgment Mortgage on the family home and can then seek to sell the property on foot of that Judgment Mortgage. However, if OP is trying hard to come to arrangements and if the house has little equity, it may not be worth the creditors while to do so.

OP, have you spoken to Mabs? Certainly worthwhile.

mf