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Leevan
Starting Member
United Kingdom
11 Posts |
 Posted - 16 October 2013 : 10:43:08
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Hi, we are in the process of Handing our property back to the Bank and filing for Bankruptcy. if anyone out there can offer some advice on the following please?
I am in the process of putting together a letter for the Bank, as we have decided to Hand our Guest House/Home back to the Bank, then file for Bankruptcy to cover the shortfall and other debts. Having already spoken with Vicky, we have secured a rental property and have now vacated the premises. If anyone can offer any advice on what needs to go in the letter I would be really grateful. Does anyone know whether we have to leave all the furniture etc in the Guest house or once the property is in possession of the Bank will they just clear all of this out?
Also, my husbands parents have lent us money on their credit card, which we have been paying back to them. This will have to be included in the Bankruptcy but how will this affect them, as don't want to affect their credit history?
Many thanks |
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Viki.W
forum expert
United Kingdom
2211 Posts |
Posted - 17 October 2013 : 07:18:24
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Hi Leevan,
Have you been making payments to your other creditors as well as your husband's parents? They will be listed as creditors in your bankruptcy and the money you owe them will be written off, however, they will need to keep paying their credit card bill, that's their responsibility. It would only affect their credit score if they defaulted on their credit card payments.
If the guest house furniture isn't yours, then you don't have to take it to have the property repossessed.
Your letter should just state what you are doing and that you want the property repossessed. Send it next day special delivery along with the keys.
Good luck with everything, please keep posting.
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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Leevan
Starting Member
United Kingdom
11 Posts |
Posted - 17 October 2013 : 09:53:18
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Hi Viki,
Thank you for responding.
Just want to clarify.....when you say that my in-laws need to carry on paying their credit card, are you referring to any amount they have borrowed or are you referring that they would also have to pay back the amount that we have borrowed from them?
Regarding the guest house, we brought it as a freehold, furnished property. Some of the furniture we have taken with us as with a guest house your private accommodation is very small and the furniture etc that you have for yourself is minimal. One of our neighbours has been keeping an eye on the place and has asked whether they can have some of the furniture and a range cooker that is left in the guest house. They have stated that anything we leave behind will just be cleared out and sold off. I didn't want to just let them help themselves only then to be told by the bank that the rooms are required to be left furnished. Its amazing how the vultures all swoop in when they find out you are going to be repossessed!!
Will be drafting the letter for the Bank today. I will keep it short & to the point and will defo be sending Special Delivery. Have been delaying sending this as I didnt know what needed to be done with the furniture in the property....hopefully someone can offer some guidance with this?
Thanks again. |
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Viki.W
forum expert
United Kingdom
2211 Posts |
Posted - 17 October 2013 : 11:36:54
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Can you post exactly how your inlaws have helped you please.
If your inlaws used their credit card, then they are responsible for the full balance, regardless of how much they lent you. so, for example. they themselves have used £2000 on the credit card, and they used £4000 on the credit card helping you, so the balance is £6000. They would owe £6000 and would need to repay it.
They are your creditors and you would list them on your petition as such, with a balance of £4000 that you owe them.
Regarding your guest house, I personally wouldn't advice letting anyone coming and taking anything out.
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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Leevan
Starting Member
United Kingdom
11 Posts |
Posted - 17 October 2013 : 12:25:46
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Thanks for the advice Viki. Seems such a shame that they have done all they can to try and help us keep our business and a rrof over our heads, yet they will be the ones losing out in the long run :(
I will keep you posted on the forum on how things proceed :) |
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Leevan
Starting Member
United Kingdom
11 Posts |
Posted - 17 October 2013 : 20:45:34
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Hi,
I have put together a letter for the Bank using an example I found on another forum. I plan to send on Monday by special delivery so any thoughts on it before then would be appreciated:
Re: Account No. xxxxxxxxx. Address as above.
Thank you for your letters regarding the arrears on our account.
Unfortunately due to severe personal financial circumstances, we are unable to pay the Loan arrears or any further subsequent Loan payments, including the secured loans.
We would like Royal Bank of Scotland to take this letter as our formal request for the voluntary surrender of the above property.
We voluntarily surrender possession of the above mentioned property to RBS and agree to the sale of the property.
We can confirm that this decision has been made with the help of a debt-counselling organisation and National Debt line.
We understand that the proceeds of the sale will be applied to the account to pay off in whole or in part the balance outstanding. Any surplus funds will be used to reduce the outstanding secured loan balance.
We are not prepared to sign any form or agreement from yourselves to facilitate repossession. You are obliged to act in our interest in this matter. We suggest prompt action on receipt of this letter will help discharge that obligation.
We will not contest any repossession proceedings.
We note that RBS are at liberty to remove and/or sell any items of a personal or household nature remaining in the property after the date of our giving possession.
We confirm that the property will be vacant from today's date Monday 21st October 2013. We enclose keys for the property.
Yours Sincerely,
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Viki.W
forum expert
United Kingdom
2211 Posts |
Posted - 18 October 2013 : 11:44:55
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The letter looks fine Leevan. Good luck with everything.
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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Topic |
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Help please with the process of handing our Guest house/home back to the bank.
