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Ebony
Starting Member



4 Posts

Posted - 10 August 2009 :  21:25:04  Show Profile
Hi,

This is my first posting but was hoping someone could help!
I went bankrupt last week and am still going through mixed emotions

I made the decision prior to bankruptcy to voluntarily surrender my home and included in the forms that there would be a shortfall. I have not given up myhome yet but plan to move to rented accomodation at the end of this month and have signed a lease now so this will definitely happen.

The problem is I understood that once I handed the keys back that would be the end of my responsibilities, but I have been reading other websites where it says I will continue to be responsible for mortgage payments, council tax, selling fees etc until the property is sold.

This has me very worried as I would not be able to pay mortgage, rent and 2 lots of council tax! aswell as selling costs afterwards.

I also have not as yet spoke to the Official Receiver and although I made in clear in the bankruptcy forms my intention was to voluntarily surrender, I worry that I will now have to say I may still be repsonsible for all the above.

Has anyone handed their home back voluntarily after bankruptcy and if so please could you help me in understaning this! I was not under threat of repossession but had to think hard about the longer term and decided this was my best option

Thanks in advance.

Amy Jellings
Debt Diva Expert



110 Posts

Posted - 12 August 2009 :  14:15:30  Show Profile
Hello Ebony and welcome to Debt Divas.

If further debts accrue as you are no longer paying the mortgage etc these will be dealt with by the Official Receiver just as your other debts are.

The fact that you have mentioned it on the forms is a good move. I'd suggest you bring it up when you speak with the OR as well.

I hope this helps to reassure you.

Amy Jellings
Bright Oak
Debt Advice & Debt Management
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Ebony
Starting Member



4 Posts

Posted - 12 August 2009 :  23:02:57  Show Profile
Hi Amy,

Thanks so much for that advice I have been very worried!

It is reassuring to know this can be included as I thought maybe it might not as although I stated their would be a shortfall in the bankrupcy, I then begin to think when I move mortgage payments, selling costs, council tax etc etc would be viewed to have occured after the bankruptcy and therefore my responsibility. The council tax office are questionning who is responsible for this!!

I also have a secured loan on my property, could you please tell me if this becomes unsecured at the point of handing over the keys or at the point of the mortgage lender selling the house as I don't know if I still need to be paying this. Again it was listed as both secured and unsecured on forms

Thanks alot

Edited by - Ebony on 12 August 2009 23:04:26
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Amy Jellings
Debt Diva Expert



110 Posts

Posted - 13 August 2009 :  09:51:29  Show Profile
Hi Ebony,

I think you should point the people at the Council Tax offices towards the official receiver.

If you are to hand the keys to the house back to the mortgage lender the following will happen:
1 - The mortgage lender will sell the home.
2 - The proceeds of the sale will be used firstly to cover the mortgage balance (which may include arrears and penalties for non-payment).
3 - If there is any money left after this it will be used to repay the balance of the secured loan (which may include arrears and penalties for non-payment).
4 - If there is any money left after that it will go to you (or the Official Receiver).

If the mortgage lender and/or secured loan lender are not repaid in full the outstanding balance will become an unsecured debt which should be included amongst your other creditors in your bankruptcy.

In terms of whether you should be paying the secured loan I think it's really a personal decision for you. It's not going to bring any benefit to you but there again you may simply view it as being the right thing to do.

Hope this helps.

Amy Jellings
Bright Oak
Debt Advice & Debt Management
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Ebony
Starting Member



4 Posts

Posted - 14 August 2009 :  15:04:16  Show Profile
Hi Amy,

I would just like to thankyou again for your advice. It's really helpful!
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Amy Jellings
Debt Diva Expert



110 Posts

Posted - 14 August 2009 :  16:54:31  Show Profile
My pleasure Ebony.

Please let us know if you have any further questions or thoughts in the future.

Amy Jellings
Bright Oak
Debt Advice & Debt Management
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Ebony
Starting Member



4 Posts

Posted - 27 August 2009 :  12:33:37  Show Profile
Hi,

Please help as I am totally confused!!

Following on from what I have said above it is planned that I voluntary surrender my home tomorrow by returning the keys to the lender.

However, I have received a letter from the OR today advising that they are now responsible for the legal title and beneficial interest of the home.

How can I hand back my home when the OR now has an interest in this and could continue to have an interest for 3 years?

I have been offered the opportunity to buy the interest back which would seem to be for ??1 due to negative equity, however I have to obtain a valuation and pay the OR solicitors cost and on top of paying back my creditors this would be difficult.

I am in an awkward position what I don't understand! I have made it known throughout the process that I intended to voluntary surrender my home but now things seem even more complex and I feel in big trouble!

Please help! as due to moving to rented property tomorrow my mortgage will fall further in arreas and I will have them chasing me.
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Amy Jellings
Debt Diva Expert



110 Posts

Posted - 27 August 2009 :  16:40:40  Show Profile
Hi Ebony,

As you have decided that you don't want to stay in the home, and that you will not be paying the mortgage, you needn't worry about changing your plan to hand the keys back tomorrow.

The mortgage lender and Official Receiver will liase if necessary.

I know this is confusing but nothing new has happened that should worry you.

Amy Jellings
Bright Oak
Debt Advice & Debt Management
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stressy
Starting Member



5 Posts

Posted - 18 June 2011 :  11:34:10  Show Profile
Hi, my partner and I are getting everything (paperwork etc) together to file for bankruptcy. we have already moved into a rented house and have not paid the mortgage on the house we lived in for over a month. i have informed the mortgage company and the company our homeowner loan is with. Both of them insist we have a lengthy phone call with them to go over our expenses etc and discuss other means of keeping the house and loans secured on it. All we want is a fresh start, weve struggled for 3 years and couldnt cope anymore (since my partner lost his job). do we really have to have these 'over the phone' meetings? and the mortgage company said they didnt have to accept the surrendering of the house as they werent legally obliged to do so. we were on an IVA which will take a few months to fail, the IVA people even said we had to fill in these expenditure forms and send them to them. Help please, the CAB in our area is very limited in resources and only open for 3 hours a day and i cant get the time off work to sit in there everyday, hoping for a slot.
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Amy Jellings
Debt Diva Expert



110 Posts

Posted - 18 June 2011 :  11:47:46  Show Profile
Hi stressy.

It's really up to you.

I'd suggest that you consider working with your IVA provider and taking their advice as you deal with these issues. The timing of everything is presumably somewhat in their hands at the moment, so co-operation with them might be to your benefit.

Amy Jellings
Bright Oak
Debt Advice & Debt Management
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stressy
Starting Member



5 Posts

Posted - 18 June 2011 :  13:15:59  Show Profile
hi amy, thanks for your advice. we are going to fill out the expenditure forms for the IVA provider and send them back. The person i spoke to was great and gave me some advice too. the problem is the mortgage company though. do we really have to have these meetings with them? can i not just post the keys to them? with a letter of course. The IVA people have said we are protected by the iva so we wont get creditors hounding us til the iva is failed. which, they said will work in our interest as we would be bankrupt by then.
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Amy Jellings
Debt Diva Expert



110 Posts

Posted - 18 June 2011 :  13:55:12  Show Profile
If you'd prefer to avoid talking with them perhaps you might want to write to them outlining your current situation, circumstances and plans. As part of the letter you may wish to ask what will be the best way for you to hand over possession of the property to them.I'd suggest running the contents of your letter past your IVA contact prior to posting it if you decide to do this.

Amy Jellings
Bright Oak
Debt Advice & Debt Management
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stressy
Starting Member



5 Posts

Posted - 27 June 2011 :  07:54:03  Show Profile
we've been to CAB who are dealing with the secured loan and mortgage people for us. they were great. but i forgot to ask the question - my partner has a black horse loan which he bought a motor bike with. the loan people wanted him to sell the bike and give them the money while on the iva but he didnt. could he now sell the bike to pay for our bankruptcy orders as it was a loan of money from blackhorse, the bike is not on finance and was bought out right with the loan money???
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Amy Jellings
Debt Diva Expert



110 Posts

Posted - 27 June 2011 :  13:37:59  Show Profile
Hi stressy.

Assuming the IVA hasn't been discharged, this will again be a question for the IVA company I'm afraid. You'll want to be double-sure that they will not require the funds for the IVA.

If the IVA has been failed already then your partner can sell the bike (my reading of the thread is that the loan for the bike wasn't secured upon the bike - please correct me if I'm wrong).

If bankruptcy will soon follow he may be asked to account for any surplus funds received for the bike in addition to that amount which was spent on the bankruptcy fees themselves.

Amy Jellings
Bright Oak
Debt Advice & Debt Management
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stressy
Starting Member



5 Posts

Posted - 29 June 2011 :  06:43:59  Show Profile
The iva company know we are leaving and going bankrupt. we sent a letter to them asking for that to happen as they requested one. they also know we arent paying anything else into the iva as we havent the money to do so. my partner bought the bike with a loan he got and owns it outright. its not hire purchase and nothing is secured on the bike. if we sell the bike, there will only be enough money to pay for the bankruptcy anyway. i rang the bankruptcy helpline and they said we could go bankrupt even if the iva was in the process of failing. im just so fed up of waiting to get the funds together and get it all over and done with.
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stressy
Starting Member



5 Posts

Posted - 29 June 2011 :  06:46:06  Show Profile
we also havent signed anything to say the bike will be sold and the money to go to blackhorse. my partner told them to come and get it at the beggining of the year if they wanted it, but they said nothing.
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