Hi another question for you. I've had to move out of my house to relocate to help look after my sister who was diagnosed with terminal cancer. Am now living in a rental property. My intention was to sell my house to pay off my unsecured debts, but what with the current economic climate it hasn't worked out like that and no longer being able to fund a mortgage and rent the CAB advised that bankruptcy was an option to concider. I've now gone bankrupt and am in complete panic as reading this forum i think i've really messed up. Went bankrupt on 12th march 2009 and listed mortgage as a secure debt. Defaulted on mortgage on 16th march and intend to hand keys back, but now i'm worried that because i didn't list mortgage as unsecured debt in any way they will come after me for the shortfall even though i'm bankrupt. I've asked the OR about this and he has told me that even if they were to sell the house ten years from now they could not ask for the money, he also said to stop paying the buildings insurance. Please help, between advice people have given me so far and my own stupidty i think i've just made matters worse and don't feel any relief from going bankrupt and trying to sort my life out. All advice greatly appreciated thanks.
including a potential shortfall on the property in the uunsecured section of the SoA is a belt and braces exercise to make absolutely sure that there can be no repercussions on this issue.
However, as the OR has stated if you have stopped paying the mortgage and you hand the keys back asap advising the mortgage lender of your bankruptcy order details and the OR's contact details all will be fine.
I'm not sure I agree with the OR regarding the buildings insurance though as the property still belongs to you. Have a calm chat with your examiner pointing this out and stating that you would rather continue with the policy until such times as the property is sold and ask his views once again.
If he repeats the advice call the OR's office for final clarification by requesting to speak with a deputy Official Receiver.
Hi another question for you. I've had to move out
Posted - 22 March 2009 : 07:42:35
