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| Dean.j |
Posted - 21 September 2012 : 14:43:17
Hi all,
Having been unwell for some time (mental health) and as each month goes by the prospect of going bankrupt is on the horizon. Indeed the Royal British Legion advised me to do this last winter, but, I am attempting to get on by but it is increasingly difficult. My saving grace was the prospect of some equity in my flat, which now seems unlikely. I wish to get rid of the place as I have been advised that I would be better off, with priority given for local housing help etc. To be honest id be quite happy living in a tent than here.
My question is, how is it best to get rid of the place as its in negative equity? I understand that if i sell the place with my mortgage providers approval there will be a shortfall which will be converted to a personal loan. How would this work when I am unable to pay off my current bills? Should I hand the keys back to the mortgage provider and ask them to deal with it, the shortfall could be greater, and it has been suggested that the mortgage provider could take 6 years to ask for this shortfall back, even after bankruptcy - is that true?
My ideal situation would be go bankrupt which would include the flat. How would it be best to do this? I am afraid that after bankruptcy, any shortfall from the mortgage will hunt me for the next few years, when hopefully, I would have improved health wise, but still have the stress of possibly finding 10k+ even after a bankruptcy. If the Official receiver looks into my situation and agrees that there is no equity, he will not force the sale, even though it is what I would like to happen... effectively to start afresh.
Any help would be greatly appreciated,
D Andrews |
| 3 L A T E S T R E P L I E S (Newest First) |
| Viki.W |
Posted - 21 September 2012 : 16:18:21
Hi Dean,
Any shortfall will be covered even if it's years from now.
If your unsecured debt is £14k and there may be a possibility that there won't be a shortfall from the repossession, then bankruptcy may only be one option and it may be best to wait until you are chased for a shortfall, but as I said, please speak to an expert.
Viki Warbrooke
Vincent Bond & Co
If you would like free advice on all options available and help with your bankruptcy petition please contact me at http://www.vincentbond.com/about_us_Viki_Warbrooke.asp |
| Dean.j |
Posted - 21 September 2012 : 16:10:33
Hi Vicky,
Many thanks for your reply. Its strange to say its quite comforting!
I was getting confused when after reading through this site and other forums, the idea seemed to be that once I hand the keys to them (the mortgage providers) they can issue the shortfall well after the bankruptcy (up to 6 years). The bankruptcy is daunting alone, as my debt is currently around 14k in combined loans etc, the prospect of going through another bankruptcy a few months later to clear the mortgage debt of around 10k, or if they held out for a few years until they sell the place, will not only make the original bankruptcy a bit pointless but I will still be dealing with issues for years to come rather than a clean break (there are some repossessed properties on my site that have not sold for over a year - with no damage caused to them!), let alone annoy the official receiver!
I fully appreciate the need for further advice - unfortunately the last time I went to CAB over a simpler issue the gentleman disappeared for four hours and returned with some information that was printed from the CAB website. Whilst I appreciate it is usually manned by well meaning and caring individuals, I could do without the same condescending busy body! Lol.
Many thanks again, and it truly is a comfort to know that when a bankruptcy is entered into, as long as I send the mortgage company the keys with a covering letter explaining the situation beforehand it will be included in the first case.
With that in mind, would you or any other member be able to advise me on how to hand the keys back? Should I give them four weeks to administer it before applying for bankruptcy, how should it be handled, by letter or by phone, as sadly bankruptcy is not a question of if, but when.
I am truly appreciative of your message, it will never be forgotten.
Yours, Dean
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| Viki.W |
Posted - 21 September 2012 : 15:41:58
Hi Dean,
I'm sorry you're going having a bad time. Please speak to an expert or visit the CAB for some debt advice so that you know what your options are.
If you declare bankruptcy and hand the flat back to the mortgage company, then any shortfall will be included in the bankruptcy as long as you don't sign any new lending with the mortgage provider. It doesn't matter when they sell the flat, it will always be included.
I always suggest that you get into alternative accommodation before you declare bankruptcy, but you don't have to.
Viki Warbrooke
Vincent Bond & Co
If you would like free advice on all options available and help with your bankruptcy petition please contact me at http://www.vincentbond.com/about_us_Viki_Warbrooke.asp |
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