Hi all. Another quick (and hopefully easy) one: I've been reading through some posts and it appears that there's some uncertainty regarding house repossession prior to BR and how the subsequent shortfall is handled; i.e. whether it is then included in the BR or not. My own circumstances are these - my wife went BR some weeks ago, and my court date is scheduled for May 1st. However, the initial repossession hearing is due on April 29th (we're not contesting in any way). Naturally, I'm hoping (and have until this point assumed) that the inevitable shortfall is going to be covered by my own BR. I'd be very grateful if anyone could put my mind at rest here - I'm finding that the closer I get to my court date the more fears and worries are popping into my head. Thank God for this site!
P.S. Directly to John - I've done some digging regarding BR-related charities and will complete and post information on these once my BR is complete and I've more time. Cheers.
As I understand it, when the house sells any shortfall will be included in your bankruptcy estate as it is a provable debt before you went bankrupt. Just make sure the information is included in your petition forms.
absolutely right. The fact that the court hearing is scheduled days before your petition makes no difference. The shortfall will be included in both your bankruptcies.
Once you are BR any amount of the mortgage not covered by the sale of the house becomes unsecured and so long as you put it on your forms as a possible shortfall (because the house isn't sold yet) you shouldn't have a problem
Good luck in court after its done you'll feel so much better , i know i did.
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum. Life's too short!!!
Hi all. Another quick (and hopefully easy) one
Posted - 02 April 2009 : 16:12:27
