One thing we understand entirely is that home is sacrosanct to most people thus it is imperative that the situation in home is investigated first and foremost. In many instances, a Borrower/Guarantor’s home will be mortgaged with another lending institution and, as a result of the property crash, there will very rarely be equity in home thus there is nothing there for lending institutions to pursue/Official Receiver to vest an interest in.
Each case is different however and a lot centres around mortgage balance, current market value and whether there is any equity within the property. A lending institution only has the ability to initiate re-possession proceedings in respect of your home if it has been directly offered as security. That being said, if you have signed a Personal Guarantee, your personal assets are exposed somewhat and any Creditor can seek to realise the equity in any assets pertaining to you by either seeking Judgment and enforcing same thereafter or, alternatively, petitioning for Bankruptcy, even if they have no security.
If there is equity in your home, this will have to be taken into account in any settlement proposal to ensure that same is protected. This will often avoid aggressive action then by a Creditor however rights are reserved at all times.
If you or anyone you know could benefit from our services please call us today on 02895 217373. We look forward to working with you.