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Denised1616
Starting Member
2 Posts |
 Posted - 16 April 2010 : 11:53:16
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| Both my husband and myself declared ourselves bankrupt in April 2006, discharged in November 2006. At the time of going bankrupt we had a mortgage with Northern Rock,and a secure loan with First Plus, but due to the drop in house price we have been in negative equity position therefore was no force sell of our property. Since our bankruptcy we have continued to pay our mortgage and secure loan repayments. But in August last year I lost my well paid job and since then we have fallen behind on our repayments with First Plus who are now threating to reposses our home. If they do reposses our house and there is a shortfall would we need to declare ourselves bankrupt again ? |
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Bridgewood
Junior Member
United Kingdom
222 Posts |
Posted - 16 April 2010 : 12:17:14
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Hi Denised1616
As far as I can see the shortfalls on the secured creditors would still be claims in your original bankruptcy
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Edited by - Bridgewood on 16 April 2010 12:17:32 |
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Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 16 April 2010 : 12:19:38
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Hi
I believe the shortfall will be in the original BR
Good luck and post back as necessary, Richard
"There are no problems - only solutions" |
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RHB
Senior Member
1159 Posts |
Posted - 16 April 2010 : 14:48:49
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| I'm not sure that it will because the three years the OR has to take an interest in your property is up & by paying your mortgage you have demonstrated that you wanted the BI in your house which is now yours.Best to double check with an expert but my reading of the situation is that you are liable for the shortfall. |
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RHB
Senior Member
1159 Posts |
Posted - 16 April 2010 : 14:50:03
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| Will the mortgage company reach some agreement with you? |
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Bridgewood
Junior Member
United Kingdom
222 Posts |
Posted - 16 April 2010 : 16:20:15
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It's a good point made by RHB regarding the three year rule.
After three years the bankruptcy estate's interest in the property passes back to the former bankrupt if the OR has not done anything to secure the interest.
This means that if you subsequently sold the property any surplus would be yours.
However, the general rule is that discharge from bankruptcy discharges you from any liability for debts owed prior to the bankruptcy order (other than certain exceptions such as fines, student loans etc), and this includes liabilities to creditors who hold security (such as a mortgage company). It does not, of course, prevent the mortgage company taking possession and selling the property, but it does prevent them from then claiming against you for the shortfall - they have to claim in your bankruptcy as the debt was due to them prior to the bankruptcy order.
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Edited by - Bridgewood on 16 April 2010 16:20:38 |
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RHB
Senior Member
1159 Posts |
Posted - 17 April 2010 : 08:52:49
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| But if in the future you got say another secured loan or remortgaged for a higher amount then presumably the shortfall can't apply? |
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debtinfo
forum expert
2826 Posts |
Posted - 17 April 2010 : 08:59:32
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| yes if at any point you sign an agreement after bankruptcy, then the amount covered by that agreement would not be covered by he bankruptcy |
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Denised1616
Starting Member
2 Posts |
Posted - 19 April 2010 : 13:38:25
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Thanks for all your feedback, I have previously been advised not to sign anything which would be classed as a ‘Deed of Acknowledgement’, I'm hoping that it doesn't come to repossession, Sometimes I think if would be for the best, because of all the stress and worry. It nice to know where we stand if this happens. We are also trying to claim missing PPI against First Plus, which quite alot of money, would this have to be paid to the trustee and be rolled in to our bankruptcy ?
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declared ourselves bankrupt in April 2006
