My daughter is a declared bankrupt and her home is in trust with her Official Receiver. The property is now on the verge of repossession by her mortgage company and a loan company with interest in the property (secured loan). If the sale of the property does not realise the amount of the two debts owed, what happens regarding the outstanding amount? Also, the mortgage company and the loan company's court costs and other bills/costs incurred by them - who is liable for them? Thank's in advance for answers!
Firstly welcome to the forum So long as your daughter has listed on her forms when she went BR that there would be a possible shortfall on the secured loans (mortgage and loan) then after the house is sold these debts become unsecured and are included in the BR. Make sure that she does NOT sign a deed of acknowledgement, this is a form that mortgage companies try to use to get people to accept the debt even after the house is sold. If she has already signed one of these forms then i believe it is not an insurmountable problem but i would recommend her getting some advice off one of the experts (left hand side of the page) As for court costs etc. if the debt is included in BR then all the costs incurred will just be seen as an increase of the debt and nothing to worry about.
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurman) Life's too short!!!
My daughter is a declared bankrupt
Posted - 23 April 2009 : 10:10:48
