Author Topic: Repossession, bankruptcy and debts...please help!  (Read 3180 times)


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Repossession, bankruptcy and debts...please help!
« on: Mar 15, 2011, 10:21:50 AM »
Hi there
 Sorry to burden you guys with more questions.
 My wife was made redundant whilst on maternity leave and I begged the mortgage company (Intelligent Finance) to help but none was forthcoming so we were left with no alternative but to sell the house as we just couldn't afford it. It was snapped up quick and we were just going to make enough to clear the mortgage and pay our solicitors fees BUT a few days before the sale was concluded, IF kindly hit us with a £4600 early redemption fee. I asked them if we could pay at a later date which they refused so the sale fell through. I tried to explain that they could have their full mortgage repaid if they let me pay their fee at a later date but all I was told was it was their Terms and Conditions.
 Anyway, I made my last mortgage payment in November 2009 and we moved into private rented accommodation in January 2010 after walking away from the house to allow it to be repossessed but it's still ongoing. I've just been served with a Notice of Calling Up of Standard Security which means IF's solicitors won't be starting litigation again for another two months. I've just received a £2600 council tax bill for the property that's been lying empty, I've got loads of other debtors queuing up for me too and it's really getting to me now. All I want is to be made bankrupt (or sequestration here in Scotland) and I just can't see the end in sight.
 On the last Sheriff document I was served with, there is something that mentions that I can voluntarily surrender my home. Do you think this is wise to speed things up a bit? There will be a shortfall once the house is sold so they'll still take me to court for that but it should cut out months of eviction proceedings shouldn't it?
 Thanks so much for any advice

James Falla

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Re: Repossession, bankruptcy and debts...please help!
« Reply #1 on: Mar 15, 2011, 12:35:15 PM »
Hi Custodian
From your post I assume that you live in Scotland. I am not so familure with Scotish insolvency law, however, in England, if you move into rented accommodation and then give back the keys to your property, it is always advisable to sign a voluntary surrender form. This gives the mortgage company the green light to repossess and start the sale process. Having said that, in England, if you then declare bankrutpcy it does not matter whether the house is sold or not, any shortfall after the eventual sale will be bound up in the bankruptcy.
In Scotland I am sure there are similar rules. However, I do know that you can not go into sequestration voluntarily unless you have already been taken to court by one of your creditors. Is this the case with you?
In terms of the council tax debt, this would be included in the sequestration. You should tell the council that you have now moved out of the property and they should cancel your account forthwith. They should then refer ongoing bills to the mortgage company.
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Re: Repossession, bankruptcy and debts...please help!
« Reply #2 on: Mar 17, 2011, 05:53:57 AM »
Hi Custodian you are apparent insolvent as you can use the summary warrant that you have received to make your self bankrupt for the Council Tax arrears.

Both you and your partner will have to apply as you are joint and several liable for CTAX  and property if in joint names etc.

You can also apply under the certificated route which means an authorized person (CAB Scotland etc ) can give you a certificate which you can use within one month to apply you will need to apply via the accountant in bankruptcy and it will cost you £100.00 each.

Contact AIB at 0300 200 2777 for general enquiries !
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James Falla

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Re: Repossession, bankruptcy and debts...please help!
« Reply #3 on: Mar 17, 2011, 02:07:49 PM »
Good advice there from Shocksoc Custodian. If you sequestrate yourself o the basis of the council tax arrears, then any shortfall when your property is eventually sold should also be caught up in the process. Let us know how you get on.
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Re: Repossession, bankruptcy and debts...please help!
« Reply #4 on: Mar 23, 2011, 12:29:37 AM »
hey, was wondering if you hade considered looking at other options, make your debit affordable and also become debit free in as little as a year? Would this be something that would be of intreasted to yourself?

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Re: Repossession, bankruptcy and debts...please help!
« Reply #5 on: Mar 23, 2011, 12:55:38 PM »
HI Custodian,
Shocksocs gave you sound advicve, you can go for the certificate of sequestration, this is done through an approved money adviser either through CAB or your local authority money advisor, you will then have 30 days to apply for sequestration at the cost of £100 each
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