We are going BR at the end of the month. We haven't missed a mortgage payment yet. We also have a secured loan which we also haven't missed a payment on yet. There is probably about £20k negative equity.
We are going BR at the end of July and so August will be the first payments we miss as we cannot afford to pay anything. I have just read something from Julian which says "list mortgage/secured loans in the unsecured section of the SOA with "?" in the amount and "shortfall" in the purpose column and that by doing this it will ensure any shortfall from repossession/sale will be included and written off in the BR."
Do we need to do this? Also, should we have dealt with repossession before both filing for BR?
Whether you declare it on the booklet or not, the shortfall will be captured within the bankruptcy and you will be discharged from the debt. It makes no difference whether your house is repossessed either prior to or after the bankruptcy.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com
Still confused
Posted - 06 July 2008 : 17:17:56
