Bankruptcy general questions and house - please advise if you can....

desperate-dan_5

Ok just got letter from mortgage company saying if mortgage not paid and repossessed until the house sells we are still liable for the debt? How does this work with bankruptcy? If I go bankrupt before house sells presumably each month the missing payment is added in to br and then the shortfall when it sells?

Also can anyone advise the best way either voluntary repossession when I have secured rented house or let them repossess? Can I avoid court if I do vol repo or does it not make any difference.

The other thing is that when I stoppped paying the mortgage and started drawing cash out of my account a couple of months ago to save for rented, I ordered some things from a catalogue I have had for a few years now I have ordered a fridge and freezer etc as thy are fitted here and i cant afford but now I am worrying as wll the OR look at this or is it just the time the credit was taken out (a few years ago) obviously tho the debt has increased recently due to these purchases. I dont plan on goin br until a few months further down the line tho so OR wouldnt be aware that I exected BR when i ordered the stuff.

Thanks for any advice

nervousmother

Our house was repossessed before we went BR. Although it has now had a offer it still is not completed. The shortfall is included in our BR as it was a debt prior to BR. If you go BR first, just make sure you dont sign any forms saying you are liable.
As for the other stuff, the OR will understand just make sure you can proove what you have done with the money. You may get a grilling about recent purchases but I doubt anything bad would come of it. The worse that would happen would be a bankruptcy restriction order/undertaking they just extend the restrictions of BR for longer (cant act as a director/obtain credit over £500) nothing major really.
Try not to worry, its not like you have wasted thousands knowing you are going BR.

fiveyearplan

If it was me I would still go to court just to make sure it all goes well and that the court knows your wishes etc.

desperate-dan_5

What happens if I dont sign the forms? Does it make any difference? Also waht if it takes years for the house to sell will I still be hounded til this day?

desperate-dan_5

Will I get the option to go to court either way then? Sorry if I sound thick. Did u attend court or anyone else who has can u advise what it was like? thankyou.

peachyprice

Any shortfall will be included in your BR no matter how long it takes, whether you go BR before or after repossession. Just don't sign anything that may complicate matters

border_collie

desperate-dan wrote: »

What happens if I dont sign the forms? Does it make any difference? Also waht if it takes years for the house to sell will I still be hounded til this day?

Yes it makes a difference.
If it is the form I am thinking of it MEANS YOU WILL BE LIABLE FOR SHORTFALL.

Do not sign anything.

desperate-dan_5

Thankyou all again, dont know what I would do without this forum xx