Bankruptcy

tburke

Hi,

I need some advice on bankrupty. I have heard that when your house has been reprocessed even if you go bankrupt you still owe the remaining balance of the mortgage or secured loan with the mortgage. I have £28000.00 which i will owe once the house gets reprocessed. Also what documents will you need to provide and proof of income?

Thanks

peachyprice

Hello there, welcome to the forum.

You have heard incorrectly, any shortfall from your reposession would be included in your bankruptcy, as long as you don't sign a Deed of Assignment after your BR date.

You usually need the last 3 pay slips.

tburke

Thanks for reply. Do you need to show your bank statements and tax credits? Will i have an interview?

Merry_Gentry

The first thing you need to do is speak to either National Debtline, CCCS or CAB. They will go through your situation and give you proper advice.

Once you have done that, best thing would be to do an SOA which will list your income and expenditure.

If you go bankrupt, the OR (Official Receiver) will request copies of bank statements and all of your cards. If you don't have the statements, they can get copies.

An interview depends on whether your case is complicated or not.

tburke

Ok thanks. I heard that if your mortgage is fixed you will be unable to write that debt off through bankruptcy? Is that true

Merry_Gentry

No, that's not true. The majority of debts can be included in your bankruptcy.

cuddlymarm

Hi

The way I see it is that BR clears unsecured debt. When your house is sold the shortfall becomes unsecured debt so is included in the bankrupsy for the OR to deal with after the property is sold. In our case the house was in joint names so the shortfall is handed on to the partner if they didn't both go BR at the same time. In my case I now am having to go BR for the shortfall of our property due to not being able to pay the debt off in any other way. OH went BR last year.

I hope this makes sense:rotfl: