The scheme clears all existing debts with creditors after an individual has been made bankrupt and then allows them to move forward and remortgage their property.
The process starts with a solicitor being instructed to liaise with creditors and the appointed representatives charged with monitoring the bankrupt to agree settlement figures. Once the total settlement amount has been finalised, it is secured by means of aloan.
A barrister is then appointed to present the agreement in Court. The barrister and solicitor then liaise with the creditors to ensure the bankruptcy is officially annulled by a Court Order. At this stage the individual can remortgage their property with a product available through the lending panel of Bananas Inc.
Interest ratesvary depending on the specific circumstances of the applicant, with fixed-rate and discounted available, as well as self-certification and status options. Lifeline offers a fee as well as the remortgage procuration of1.25% to intermediaries. Maximum loan-to-value on the remortgage is85%.MIG is charged from 75%and redemption penalties vary depending on scheme chosen.
Bananas believes that the product will appeal to a large number of bankrupts given that it removes the possibility that former creditors make a future claim on assets, and frees them and their property and assets from the penalties of being un-dischargedand discharged bankrupts (see Note to Editors). Lifeline also allows individuals to reduce the charges made against the estate.
Sue Cox, Business Manager at Bananas Inc, said: “This provides bankrupts with a means by which they will be able to move from a situation where they can’t remortgage or borrow money and have a cloud hanging over their heads, to one where they can have a fresh start. To those on the verge of bankruptcy it is also attractive because it can be used to stop the bankruptcy happening in the first place.”
