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hand my keys back or wait for repossession?
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confusedbankrupt_2
Posts: 3 Newbie
Hello friends
First time on a forum so excuse me if I'm not doing it right.
I'm wondering, once you are bankrupt (and have not been discharghed yet) and you hand the keys of your house back to the bank, can they chase you for any shorftfall in the house's value. I'm virtually [positive there is negative equity in it.
I did ask the bank and they said that they couldnt IF I was bankrupt. They have sent me paperwork to fill in should I wish to voluntarily surrender the keys and they say on the papers how strongly they advise people to get financial advice. Im worried they are saying anything to get me to give them the keys.
I'm losing the house either way, I just need advice as to whether to hand keys back or let them chase me (further) through the courts.
Thanks everyone
First time on a forum so excuse me if I'm not doing it right.
I'm wondering, once you are bankrupt (and have not been discharghed yet) and you hand the keys of your house back to the bank, can they chase you for any shorftfall in the house's value. I'm virtually [positive there is negative equity in it.
I did ask the bank and they said that they couldnt IF I was bankrupt. They have sent me paperwork to fill in should I wish to voluntarily surrender the keys and they say on the papers how strongly they advise people to get financial advice. Im worried they are saying anything to get me to give them the keys.
I'm losing the house either way, I just need advice as to whether to hand keys back or let them chase me (further) through the courts.
Thanks everyone
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Comments
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Hi confusedbankrupt and welcome to the BR board. First thing NEVER EVER sign anything your morgage sends you after your BR as your shortfall is included in your BR.
Some threads for you to read.
Voluntary repossession forms and bankruptcy - click here
Dawlish’s thread - Click here
How long does it take to repo a property - Click hereWhen you leave a property that is going back to repossession, it is up to you to have the utilities CLOSED* down, that is they should physically come out and shut them off.
If you don't do this then, you can be liable for any and all costs until the property is sold.
Just moving out and telling the utilities that you have handed it back to a mortgage company doesn't count until, as they say, there is either a court order or letter from the mortgage comapny accepting liability.
The same applies with Council Tax, which you remain liable for, but you can get an exemption on, unfortunately utilities don't normally give the same exemptions.
*Closed down means:
Electric - The Electric Company comes out and removes the master fuse.
Gas - The Gas company comes out and caps the supply.
Water - The water company normally agree a cut off, they really actually cut the water off
If...x"If wishes were horses, then beggars would ride"
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