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Sunshine_Girl
New Member
77 Posts |
 Posted - 23 September 2008 : 05:27:30
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Hi
I've just filed for bankruptcy and wanted to double-check something the OR told me, as what few snippets I've found on the Web seem to contradict each other.
I'm a homeowner but in negative equity due to a large secured debt. He says that, because of the negative equity, I won't lose my home and the secured debts won't count as part of the bankruptcy. Meanwhile, both my mortgage company and secured creditor agree on that. However, he says that, in theory, I could stop paying my mortgage and secured loan repayments until those two companies repossess my home and the debts to them would then be incorporated into the bankruptcy.
I'm not after advice on which way to go - believe me, I've spent many a restless hour listing the major pros and cons on both sides and wouldn't necessarily go down the repossession route - but I just wanted to check the facts (and also any time limits involved).
Many thanks
SG
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Suzanne
Average Member
United Kingdom
869 Posts |
Posted - 23 September 2008 : 08:50:17
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Hi, and welcome to the forum
Because your property is in negative equity you would be given the opportunity to buy the beneficial interest back for a nominal £1 plus conveyancing costs of £211. However, if you do not continue to pay the secured lending the lenders can take possession proceedings against you. Any shortfall after the sale would vest in the bankruptcy estate. You would have to be sure that the property is either surrendered to the lenders or sold prior to your discharge or you would then be liable for the shortfall yourself.
It really depends if you want to or can afford to stay in the property.
Suzanne Stocker
Bankruptcy Manager
Jones Giles Ltd
www.jonesgiles.co.uk
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Bankruptcy, Negative Equity & Repossession
