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T O P I C R E V I E W
Hutch
Posted - 25 August 2010 : 11:56:15 Hi, My husband and I are filing for BR in September and due to the liklihood of around £10k of equity in the house, we have accepted that we will be voluntarily giving up the house and moving into rented accommodation.
My question is, what is this process? We haven't missed a payment on the mortgage yet (but will in a couple of days). Should we contact the bank directly and let them know what we are planning? Or do we just leave it in the hands of the OR?
I've heard the bank will probably send me a form to sign which means we would be liable for any shortfall, so I assume I should not sign this?
Any advice on this process is appreciated.
1 L A T E S T R E P L I E S (Newest First)
Melanie.n
Posted - 25 August 2010 : 12:41:38 Leave it to the OR to deal with, whatever you do - do not sign any paperwork as this may leave you liable for any shortfall in the future.
My usual advice to people in similar circumstances is to cease payments on your mortgage and use the money to secure alternative rented accommodation (you will need rent and bond)if possible i would try to secure alternatice accommodation before filing for bankruptcy, as having bankruptcy show on your credit file may well cause you difficulties with the credit check done by the letting agency (if one used). One the alternative accommodation secured you can then file for bankruptcy
Hope this helps
Melanie
Melanie Nicholas 29 years insolvency experience - 23 of which in the Insolvency Service - Insolvency Manager Jones Giles email me at melanienicholas@jonesgiles.co.uk telephone 01792 899996
