If mortgage payments are being maintained then it is questionable whether this would form part of the Bankruptcy.If you were made bankrupt then the timing was not a fault of yours and as long as the OR's office is aware that there will be an immanent shortfall this will be dealt with and included in your Bankruptcy.If you hand the keys back or have a property repossessed then technically this would form part of your bankruptcy. ============== Alesian
I hope you don't mind if I join in this one. I've had the same problems as Pix1 in trying to get answers to the question over repossession and shortfall and it certainly is a grey area. The latest response from my examiner, however, was very interesting:
"As you have discovered in your research, this is not a simple yes or no matter. Many factors are involved to complicate what is a very important question for you.
"I would suggest talking to your mortgage company & asking their advice on what will happen in this situation - they deal with these matters on a daily basis & will have good experience. Secondly, you may wish to seek free legal advice from someone such as the CAB or possibly your union.
"My personal understanding of the situation is that providing the repossession happens within the bankruptcy period (that is before your discharge date) & that you have not bought out the OR’s interest in the property, & that you have not signed a deed of acknowledgement (in which you assume responsibility for the debt in bankruptcy), then the shortfall will be part of the bankruptcy & be discharged along with the other debts.
"Please note the above paragraph is not a definitive answer, merely my attempt at giving you a simple answer based on the facts as I recall them, and should not be taken as legal or financial advice."
Does this help? SG x
Edited by - Sunshine_Girl on 31 March 2009 22:02:53