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    • banksshouldworry
    • By banksshouldworry 29th Nov 17, 10:26 AM
    • 111Posts
    • 89Thanks
    banksshouldworry
    Giving Up Mortgaged Home Years After Bankruptcy???
    • #1
    • 29th Nov 17, 10:26 AM
    Giving Up Mortgaged Home Years After Bankruptcy??? 29th Nov 17 at 10:26 AM
    I went bankrupt in Jan 2014 and was discharged a year later in Jan 2015. As my home at discharge was in negative equity by £10k I got to retain my mortgaged home and still have it.

    But...............my situation has now changed and I no longer need the property. If its still in negative equity, am I then responsible for that debt today or is that considered a debt from my bankruptcy? I didnt sign any deed of assignment after I went bankrupt in 2014 that I remember anyways.

    Can I just contact the mortgage company, give notice and then hand in the keys and dispose of the property without any other consequences? Does it do anything to my credit rating if I surrender the house?

    Anyone know???????

    banksshouldworry
    Last edited by banksshouldworry; 29-11-2017 at 11:08 AM.
Page 1
    • silvercar
    • By silvercar 29th Nov 17, 11:58 AM
    • 36,208 Posts
    • 153,062 Thanks
    silvercar
    • #2
    • 29th Nov 17, 11:58 AM
    • #2
    • 29th Nov 17, 11:58 AM
    Can I just contact the mortgage company, give notice and then hand in the keys and dispose of the property without any other consequences? Does it do anything to my credit rating if I surrender the house?
    Have you changed the mortgage since bankruptcy?
    If not, then you should be OK. But you must NOT under any circumstances sign anything acknowledging responsibility for the debt. This may mean that you can send the keys back butcan't do anything else, so giving notice would be risky.

    It may be that you need to send the keys back and then wait for them to repossess.

    You will get a repossession (voluntary or not) on your file.
    • banksshouldworry
    • By banksshouldworry 29th Nov 17, 12:21 PM
    • 111 Posts
    • 89 Thanks
    banksshouldworry
    • #3
    • 29th Nov 17, 12:21 PM
    • #3
    • 29th Nov 17, 12:21 PM
    Have you changed the mortgage since bankruptcy?
    Originally posted by silvercar
    I haven't changed the mortgage at all since I got it nor since bankruptcy.

    But you must NOT under any circumstances sign anything acknowledging responsibility for the debt.
    Originally posted by silvercar
    I dont recall signing anything from the mortgage provider since bankruptcy. Would it be OK for me to contact them to double check or will it trigger something at their end where they get suspicious?

    This may mean that you can send the keys back but can't do anything else, so giving notice would be risky.
    Originally posted by silvercar
    It may be that you need to send the keys back and then wait for them to repossess.
    What does this mean? Does giving them notice give them power to do something to stop the possibility of a repossession?
    You will get a repossession (voluntary or not) on your file.
    Originally posted by silvercar
    Does the repossession date get added to my credit file and then adversely affect my credit rating for 6 years from that point forward or does it then drop off the credit file with my bankruptcy?

    Will I still be responsible for the negative equity or does that get wiped?

    banksshouldworry
    • silvercar
    • By silvercar 29th Nov 17, 4:29 PM
    • 36,208 Posts
    • 153,062 Thanks
    silvercar
    • #4
    • 29th Nov 17, 4:29 PM
    • #4
    • 29th Nov 17, 4:29 PM
    I don't have all the answers.

    If you haven't signed anything since bankruptcy then all the negative equity falls into your bankruptcy, so effectively wiped.

    They can refuse to accept the keys being sent back as a voluntary repossession. They may require you to sign something in order for them to take the property on in repossession. Your refusal to do so just means that it all takes longer. You stop paying the mortgage and then they will eventually repossess, but this could take months.

    OK for me to contact them to double check or will it trigger something at their end where they get suspicious?
    I wouldn't do this.
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