my partner and i are going bankrupt and handing back the keys to our house. We have just moved into rented accommodation. We were told that we sould let the mortgage lender reposess the house before we go bankrupt? Could anyone clarify this? Many thanks
There is no set rule, but it is better to secure alternative accommodation prior to filing for bankruptcy as the credit search would throw up the bankruptcy and some landlords/agencies are difficult often demanding six monthsrent up front to secure a property, which many people in your situation are not able to do. Ensure you list your mortgage company and /secured loan company if applicable on your unsecured creditors for £1 as well as on the secured creditors page that way the shortfall from the eventual sale of the property will be included in the bankrupty. (Once the property is sold your mortgage debt becomes 'unsecured'
Melanie Nicholas 28 years insolvency experience - 23 of which in the Insolvency Service - Insolvency Manager Jones Giles
I only spotted one of your posts advising about listing a mortgage shortfall in the unsecured section as well the night before my OR phonecall..
Luckily I mentioned it to her and she seemed ok as the negative equity is apparent on the form, but I didn't get the impression she was going to act on it. Do you think this could be a problem?
hi would you still put the shortfall on SOA even if you wanted to try and keep the house just in case it comes back on you or am i misunderstanding something?
I would definitely have your friend introduce a rent book showing payments and his signature of receipt of payment but no need for a contract as such.
givemestrength If you enter the shortfall but keep paying the mortgage etc the shortfall aspect will become void. If months later the mortgage becomes a problem and the property is eventually repossessed, and there is a shortfall, you could be looking at bankruptcy a 2nd time so you need to be sure when declaring the 1st time that the mortgage is affordable.
Robin55 if you intend to let the property go write to the OR stating that fact and that you require any shortfall to be included as you had inadvertantly omitted this on your SoA. Verbal understandings can sometimes come back to haunt you later, better to advise them in writing.
going bankrupt and handing back keys
Posted - 24 February 2009 : 12:29:31
