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bugsy
Starting Member
United Kingdom
8 Posts |
 Posted - 20 February 2009 : 15:07:02
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Hi there,
I went BR in Dec 08 and have 3 buy-to-let properties which I detailed on my SOA - amongst other unsecured lenders. Since Jan 08 I havent been able to pay the mortgage on these and have missed 2 payments and will miss the 3rd payment in March. Due to the negative equity in these, I am happy for them to be re-possessed. As I have included these properties on my SOA, could you please advise if when these properties are re-possessed and sold at auction, will the creditors still chase me for the short-fall if a) the sale completes before my discharge and b) if sale completes after my discharge in Dec 2009? |
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Melanie.n
forum expert
United Kingdom
1282 Posts |
Posted - 20 February 2009 : 15:10:19
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Any shortfall arising fromn the repossession and sale would be included in the bankruptcy - did you list them on the secured page or as potential shortfall on the unsecured page ( as once properties sold any outstanding mortgage or secured loan becomes unsecured)either way though the shortfall will be in the bankruptcy.
Hope this helps
Melanie Nicholas
28 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
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bugsy
Starting Member
United Kingdom
8 Posts |
Posted - 23 February 2009 : 17:00:05
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Hi Melanie
Thanks for the clarification which is re-assuring as there was conflicting information around and some suggestions that repossession must already have completed prior to date of bankruptcy for the shortfall to fall into the bankruptcy. I listed them on the secured debts page.
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Melanie.n
forum expert
United Kingdom
1282 Posts |
Posted - 23 February 2009 : 17:21:23
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Some properties only get 'handed back' after the making of the bankruptcy orde, any potential shortfall is included in the bankruptcy irrespective of when the mortgage sells the property
Melanie Nicholas
28 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
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pix1
Average Member
689 Posts |
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bugsy
Starting Member
United Kingdom
8 Posts |
Posted - 23 February 2009 : 22:29:23
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Thanks Pix1 - those are really useful links and I will go through them with a fine-tooth comb! Just finally, could you please just answer one more pressing question: does a joint-owner of a property who is interested in acquiring the property have to prove financial affordability, ie that he/she has the funds to support the mortgage? I ask because my partner who is joint owner of our property, which incidentally has no equity, would like to take 'ownership' but she is retired and has no income, hence it will be me who will be paying the mortgage?
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John
New Member
United Kingdom
73 Posts |
Posted - 23 February 2009 : 22:39:26
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Hi bugsy
if your partner expresses a desire to purchase your beneficial interest no credit checks or affordabilty testing is carried out. The reason being that despite having lost your rights to your BI you are still responsible for mortgage repayments as you were pre BR.
timendi causa est nescire
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bugsy
Starting Member
United Kingdom
8 Posts |
Posted - 23 February 2009 : 22:47:44
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| Many thanks for the prompt response John - even more re-assurance. I only had my face to face interview with examiner on 21st Jan and he stated that he would be writing a report to the creditors. Should my partner wait for the examiner/OR to write to her (as joint owner) or should she write to him expressing desire to purchase beneficial interest? We've maintained the mortgage payments on this property as we are keen on keeping it. |
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John
New Member
United Kingdom
73 Posts |
Posted - 23 February 2009 : 23:24:09
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Hi bugsy
I would have your partner write to the examiner expressing her interest so that when they come around to dealing with the property it will save a little time.
timendi causa est nescire
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gally
Junior Member
114 Posts |
Posted - 25 February 2009 : 17:02:10
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| john i need to speak to someone ref my bi/charge on my property can you contact admin for my email add and forward a contact number i can reach you on as i dont know how else to talk to you |
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Hi there,I went BR in Dec 08
