I received lots of help on this site a few years ago, when I was declared BR. I have a friend who could use some advice please. He was declared BR in 2012 and managed to stay in his mortgaged property but is now in a position where he cannot afford the mortgage anymore. The house is in negative equity and he feels he is fighting a losing battle. Would he need to apply for BR again or could this be included in the 2013 BR, given that the OR still holds an interest? Any advice would be greatly appreciated.
Hi This is not simple - if the shortfall arises around the time of Bankruptcy then the debt is included in the BKY however when a BKPT keeps a property and continues to maintain the mortgage post BKY I believe this constitutes a new acceptance of the terms and therefore if breached sometime after the debt would be new and therefore potentially a new insolvency procedure might be necessary. Your friend should get an insolvency solicitor to verify his position but I suspect this is now probably a 'new' debt and the shortfall cannot therefore retrospectively be included in the old Bankruptcy.
I understand you are an expert and do not question your knowledge however how can this justify an acceptance of new terms and conditions when the old terms and conditions have not been renewed via a re-mortgage or new provider, surely the shortfall whenever the house is repossessed post bankruptcy can only be pursued via the original terms and conditions of the original mortgage acceptance offer and since bankruptcy took away any potential shortfall then whenever the house is repossessed the shortfall if any is a bankruptcy debt, if what you say is correct then anyone who pays their mortgage post bankruptcy would have to go bankrupt again
I would agree with Lisa that the OP's friend should seek some advice on this, either a free consultation with a solicitor or CAB.
The friend in my adversity I shall always cherish most. I can better trust those who helped to relieve the gloom of my dark hours than those who are so ready to enjoy with me the sunshine of my prosperity. – Ulysses S. Grant