My wife and I have unsecured debts of arround £25000, and a mortgage of £250000 we have tried to sell the property over the past year with no luck we now have the mortgage company taking steps to repossess once this happens they will sell for less than the £250000 and come after us for the difference plus costs probably another £20000. We have a very small income now hence the bother and feel bankruptcy is the best option for us. Do we have to wait for the mortgage company to tell us the ammounts they want to recover from us before we file for bankruptcy?
if you petition for your own bankruptcy and have arrears on the mortgage you need to fill the statement of affairs in carefully to ensure that any and all debt arising from the sale of the house goes into the br.
I would suggest you need to enter the mortgage in the secured area PLUS also list the debt in the unsecured area with a nominal value - this will ensure that you don't get hounded for additional debts later.
You also need to make sure you have a plan and a realistic timescale to make sure you aren't left homeless.
Paul Johns Assisted Bankruptcy Specialists Reviva UK www.revivauk.com
The experts will advise but this came up in my own bankruptcy. You should stop making payments towards your mortgage if you go bankrupt as the mortgage company could argue they can pursue you for the shortfall if you are still making payments once you go bankrupt. Also, make sure you state on the bankruptcy statement of affairs that there is likely to be a mortgage shortfall, thereby flagging it as a likely debt to the official receiver. Essentially, you cango bankrupt before the mortgage company sells provided it is on the BR form and you do not make payments into your mortgage from the date of the bankruptcy order. There should be no need to wait for the property to be sold. People should only ever make payments into a mortgage after the BR order if they intend to try to keep the property, which you don't. Remember, too, that if you and oyur wife are joint signatories on the mortgage you must both go bankrupt. otherwise the mortgage company could pursue either one of you who did not go bankrupt. Good luck.
mortgage company taking steps to repossess
Posted - 13 May 2008 : 17:22:17
