If a person owed the inland revenune back taxes , fine etc and the persons only asset is there house , but the house is mortgaged can the person be forced to sell the house , or would it simply be a case that the house is not his to sell due to it belonging partly to thereself and the bank?
Yes, and No in that order. Think about it, if that was the case you could avoid it happening by getting a 1 mortgage on a house that was otherwise owned outright and the revenue couldnt touch it. Dunno what the case is, if its jointly owned by a couple though.
The house would be sold and after the bank gets their mortgage back the Inland Revenue would take as much of they could of the debt from what was left.
You should try to arrange a repayment schedule with the Revenue if possible.
I am no expert, but the bank dont own the house - you do. You haven't bought it on HP...! You own the house but owe the mortgage to the bank. If you default on the loan they can force the sale/return of the house to recoup the loan. Thats very different from them owning a share in the house. Therefore, IR sees the house as your asset, and can therefore force you into selling it to pay them. However, payments to the bank for the remainder of the mortgage would take priority out of the sale monies (I assume..??)
I agree, they should try to arrange a repayment schedule with the Revenue.
Otherwise, IR could get a Court Order and in the event of that not being met, they could them obtain a Charging Order on the house .... effectively giving the IR a second mortgage on the house. Then in the event of the debt still not being settled they could then obtain a Court Order for the house to be sold.
Being only the second mortgage holder the IR would rank after the holder of the existing first mortgage holder. But if there is currently a lot of equity in the house they will probably succeed in getting all the money owed to them, as well as all their legal costs.
Depends how much you owe - if its just a few thou, I'd arrange a repayment schedule / deal as the others have suggested and the IR would probablt accept that, or otherwise if its that bad, depending on your age / social situation, I'd just consider joining the foriegn legion, if you know what I mean.
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