Author Topic: Going Bankrupt... Want to get shot of the house too...  (Read 1267 times)

toxopholist

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Going Bankrupt... Want to get shot of the house too...
« on: Apr 05, 2010, 06:43:00 PM »

Hello,
My wife and I are about to be made bankrupt as a result of a failed IVA,and had resigned ourselves to losing the house...
I have been told now that the receiver wont be interested in the property as it is in negative equity...
Losing the house has become part of the process of moving onwards and upwards also it is an opportunity to move onwards and upwards as well as escape the house that is becoming a millstone around our necks...


My question is can we still give the house back and does the shortfall become part of the bankruptcy? If it is still possible does anyone have any advice on how to go about it? we have a mortgage and a secured loan against the property..


Thanks for any advice


Charlie

gordonblair81

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Re: Going Bankrupt... Want to get shot of the house too...
« Reply #1 on: Apr 22, 2010, 03:55:50 PM »
Hi Charlie
 
I wouldn't see any reason why you could not hand back the property to the mortgage company,  In scotland (where i am) it would be a case of contacting the mortgage company informing them of your intention to voluntary hand back the keys,  the mortgage company would then sell the property most likely at auction and the shortfall most likely to be from the secutred lender would become part of your bankruptcy.
 
Sounds straight forward and t be honest it is.
 
Hope this helps
 
Regards
 
Gorodn Blair

Sovereign

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Re: Going Bankrupt... Want to get shot of the house too...
« Reply #2 on: Apr 26, 2010, 12:36:01 PM »
Hello Toxopholist,
 
You have to have a roof over your head and I presume that you have been advised by all concerned, including the IVA administrator, to look for an alternative place to live. If you are intent on handing the house back to the mortgage company simply write them a short letter and post the keys to the property back to them stating in your letter that you are giving them voluntary possession. DO NOT under any circumstances sign any paperwork that they send you without first referring that paperwork to a Solicitor or professional debt advisor. In many cases, the papers will take any shortfall on the sale of the property out of the protection given to you in bankruptcy and you will end up owing the mortgage company (or the secured loan company for that matter) a substantial sum.
 
Put yourself first in this instance and find somewhere to live before doing anything.
 
Best wishes.
 
Steve
Sovereign Consulting