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Nicola.j
Junior Member
United Kingdom
267 Posts |
 Posted - 13 August 2008 : 10:05:46
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Hi
My job is relocating to scotland in one month and I now have a property to rent and am filing for bankruptcy and handing back the keys to my property as I have a secured loan as well as mortgage which has caused the problem.
My secured loan company have sent me a default notice because I am two months in arrears .I have made them well aware of my intentions but now they say they are going to go for an attachment of earnings starting today.
Please could you answer the following questions
1.Can they just get a solicitor to write to my company and ask for this or do they have to go through the courts like unsecured.
2.If they can do this are they going to be able to get this in place before i file which will be around 01/09
3.Am I understanding things correctly that if you hand back the keys ie voluntary repossesion any shortfall after the sale will be included in the bankruptcy.
4.If this was to happen before I go bankrupt how would this affect the bankruptcy.
5.What would you advise me to do now.
Thanks for the great website
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John
New Member
United Kingdom
73 Posts |
Posted - 13 August 2008 : 10:44:38
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Hi Nicola
Your secured loan lender is blowing hot air here.They have security over your property so they won't get an attachment of earnings.
They can go for repossession but the timescales are clearly in you favour here as well.
Stay focused on your game plan, it's fine.
Hi all
I have now read the July posting of this thread.
Technically Zoe is right, at this moment in time Nicola is liable for the loan. But as she is handing back the keys and the property will be sold then this won't be an issue provide the shortfall, or potential shortfall, is listed on her SoA for 01/09.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
Edited by - John on 13 August 2008 10:50:13 |
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BankruptC
Senior Member
1030 Posts |
Posted - 13 August 2008 : 11:43:17
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Thanks John,
So just to clarify for my own peace of mind as we're in a similar situation, secured lending IS captured in the bankruptcy once you have handed the keys back and written 'shortfall' in the relevant place on the SoA?
Thanks again,
CG. x |
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John
New Member
United Kingdom
73 Posts |
Posted - 13 August 2008 : 11:52:08
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Hi
yes and no
secured borrowing is not captured in bankruptcy.
Once the asset is sold and there is a shortfall, then that shortfall is no longer secured against anything and becomes unsecured, which is then captured.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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BankruptC
Senior Member
1030 Posts |
Posted - 13 August 2008 : 11:55:28
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I think that's what I said on Nocola's July thread. 
Quote: "Hi Zoe,
Nicola said she will be handing back the keys to her property and moving into rented accommodation. As I understand it, in these circumstances, any secured lending becomes unsecured (as there is no longer a property to secure it on) and therefore it is included in the bankruptcy."
I'd hate to think I was misleading anyone and hope i haven't!
CG. x
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zoe
Junior Member
329 Posts |
Posted - 13 August 2008 : 12:34:20
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Hi
the point i was trying to make was that handing the keys back is not the same as selling, could you clarify for me please??? |
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Nicola.j
Junior Member
United Kingdom
267 Posts |
Posted - 13 August 2008 : 12:43:35
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Hi
Could I just clarify that once I go bankrupt and hand back the keys,I will not be reponsible for making any more secured loan payments.I am starting to get worried now.
Thanks |
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BankruptC
Senior Member
1030 Posts |
Posted - 13 August 2008 : 13:03:48
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Don't worry, Nicola. Once your house has been sold, as long as you write 'potential shortfall' in the amount section of your SoA for your mortgage and for your secured loan, the companies will claim what they can from the sale and any shortfall will be captured in the bankruptcy and you will not have to pay it.
I'm doing exactly the same thing.
CG. x |
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Nicola.j
Junior Member
United Kingdom
267 Posts |
Posted - 13 August 2008 : 13:11:56
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Thanks Ian.Can I just ask what happens from the time I leave the flat to it being sold?
Thanks |
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John
New Member
United Kingdom
73 Posts |
Posted - 13 August 2008 : 16:26:45
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Hi
nothing as far as you are concerned as from the point of BR the interest in the property vests in the Official Receiver so he deals with it all (or his appointed trustee).
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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Nicola.j
Junior Member
United Kingdom
267 Posts |
Posted - 13 August 2008 : 16:33:09
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| Thanks for the info |
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Topic |
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Handing back the keys-URGENT advice needed
