In A Quandry

highlander68

Hi gang,

We've been to see the CAB for a 3rd appointment and I'm confused.

We were all set (as advised) to stop paying creditors/mortgage etc - which we have done and make the call to N/R to inform them of our decision to go for Volutary Repo, then go and do the BR. The advisor from CAB reckoned that we should delay the BR untill the house has been repo'd and that the full shortfall of the debt to N/R can be included in the figures for the BR.

I was under the impression that once we went BR as long as the OR was notified about the house and that we no longer wanted it (neg equity with the secured loans) that they would include any and all costs arising from the property within the BR.

CCCS_Matthew

Hi there,

You are correct. If you mention the property to the OS and include the information on the petition, the shortfall would be included within your bankrupty. You won't know the exact shortfall anyway until NR sell the property which could be potentially months away.

I would advise to delay your petition until you've found alternative accomodation, to ensure you can include details of rent, Council Tax etc within your outgoings on the petition.

Hope this helps,
CCCS

k2nga

Yeah thats how i thought it worked to so you might want to call national debtline for some further advice as i am confused now?

k2nga

Ah cool there you go.

fermi

I would have to agree, you are correct.

I think that your CAB advisor may be a little uncertain of the legal position themselves, or are just being over cautious.

highlander68

Thanks guys, I thought I was correct, but the chap at CAB couldn't seem to grasp it even when I mentioned the "piece of paper" that is supposedly sent by N/R asking us to sign it about being responsible for any shortfall, I said "we dont sign it" he said yes you do!

fermi

highlander68 wrote: »

Thanks guys, I thought I was correct, but the chap at CAB couldn't seem to grasp it even when I mentioned the "piece of paper" that is supposedly sent by N/R asking us to sign it about being responsible for any shortfall, I said "we dont sign it" he said yes you do!

No you certainly don't sign it if it says that you remain liable.

Scarlet.1974 and several others have been in a similar situation here with NR. The best course of action seems to have been to compose your own letter declaring that you are voluntarily handing back the property.

If they refuse to accept that and formally repossess through the courts, then they are only incurring additional costs for themselves and causing themselves more hassle. Not your problem.

highlander68

Thanks Fermi,

It's nice to be right for a change!

Are you ready for 3rd question?

We currently reside in England, due to reasons of job loss etc, we're moving to Wales. Wife is moving down in 2 weeks, I'm moving down in 6 weeks. I understand that you've got to have been residing in the area that you file for BR for 6 months, but as we will still obviously have the house in England would we be able to still file for BR in OCT?

deedee_3

I think you will have to petition in the area where you have moved from but I am sure one of the experts will be able to advise better.

fermi

You have to petition in "your own" county court.

Under the Insolvency Rules 1986 that is the County Court covering the district in which you have resided or carried on business in for the longest period in the last six months.

If you have a business etc then it can get more complicated, but your best bet is to double check with the courts concerned so that you don't get turned down on the day.

highlander68

fermi wrote: »

You have to petition in "your own" county court.

Under the Insolvency Rules 1986 that is the County Court covering the district in which you have resided or carried on business in for the longest period in the last six months.

So we ought to be okay to petition in England, whilst living in Wales intitially!