Following bankruptcy in Dec 2009, I am still living in my home (have £20000 negative equity), although I'm having difficulty meeting the mortgage and secured loan payments (and have in fact missed a couple).
Am I correct in thinking that if I simply cease all mortgage and secured loan payments, such that the property is repossessed, that all arrears and any shortfall (following sale) will become bankruptcy debts and be written off? Is there any time-limit?
It all depends on whether your 'Purchased the Beneficial Interest' from the Official Receiver' If you did not do this then the debt would come into the bankruptcy. Sadly, if you did purchase the Beneficial Interest, you are liable for any shortfall
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
Arrears and shortfall of repossessed property
Posted - 09 September 2010 : 21:49:40
