amateur bankrupt query part 2 pls!

dollparts

Ok, now I'm really confused (how I wished you lived next door and I could walk you through it!)

I'll tell you some more about my situation, maybe it will help?

At the moment I am on an assisted sale thingy with NRock, they know that we are in Neg Equity and are wearing it pretty well. I have been making reduced payments for past 4 months hence the arrears.

However, my self employed income has dropped and I need to do something drastic before the stress of it all kills me! Am going through divorce at same time and struggling to keep my head above water.

Therefore I am wondering if I sell and then go BR what will happen to the shortfall? If I just collapse all payments and file for BR will they include shortfall still or will it be separate liabilty?

I'm resigned to losing house and going BR, just confused as to what order to do everything?

Sorry if I'm scrambling your mind here, I'm trying to be as concise as possible, please bear with me!

skylight

dollparts wrote: »

Ok, now I'm really confused (how I wished you lived next door and I could walk you through it!)

That depends on what part of London you live!!

dollparts

skylight wrote: »

That depends on what part of London you live!!

South, and I make the best tea and sponge you will ever taste in your natural!

skylight

dollparts wrote: »

Therefore I am wondering if I sell and then go BR what will happen to the shortfall? If I just collapse all payments and file for BR will they include shortfall still or will it be separate liabilty?

The outcome would be the same regardless - the shortfall will be included in your BR (not signing anything!) so go for the less stressful one, which think is to jusst stop paying so I agree with Tim (your posts crossed) - stop paying, let them repossess, save the mortgage money (hand CASH to your parents to keep safe so you never have the funds in an account the OR could potentially eye up!).

All proveable debts up to your BR date are included in your BR petition and your liability to them goes. This includes your mortgage shortfall.

dollparts

Tim, thanks for that. It makes sense and I will be speaking to CCCS tomorrow. In the meantime, if I were to hold out until repo to go BR do I stop paying all my other creditors?

Tinytim

Dollparts, if repossession is inevitable, then stop paying anything to NR at all - it is good manoey after bad, especially if you are in negative equity.

If the property is repossessed befor bankruptcy, and shortfall is included in the bankruptcy without question. This is another reason for letting the repo happen before declaring BR.

If the repo happens during or after BR, the shortfall is STILL included in the bankruptcy as long as you do not sign any papers acknowledging it. It doesn't matter how long after bankruptcy the shortfall arises, if the debt existed at the date of BR it is included.

Tinytim

skylight wrote: »

The outcome would be the same regardless - the shortfall will be included in your BR (not signing anything!) so go for the less stressful one, which think is to jusst stop paying so I agree with Tim (your posts crossed) - stop paying, let them repossess, save the mortgage money (hand CASH to your parents to keep safe so you never have the funds in an account the OR could potentially eye up!).

All proveable debts up to your BR date are included in your BR petition and your liability to them goes. This includes your mortgage shortfall.

Crossed again

skylight

dollparts wrote: »

Tim, thanks for that. It makes sense and I will be speaking to CCCS tomorrow. In the meantime, if I were to hold out until repo to go BR do I stop paying all my other creditors?

Change your phone numbers first (claim harrassment calls...) and then stop paying them all. Save the funds you would pay; if possible as I know life still goes on, kids need shoes, school uniforms, potentially unexpected 100 mile round trips to pick then up from cadet camp as they are crying and missing home........ and so on! :rolleyes:

skylight

Tinytim wrote: »

Crossed again

But thats because you are spending the time going into more detail whereas I am just skimming!

Tinytim

dollparts wrote: »

Tim, thanks for that. It makes sense and I will be speaking to CCCS tomorrow. In the meantime, if I were to hold out until repo to go BR do I stop paying all my other creditors?

That has to be a decision for you If it was me, I would...but unsecured creditors in particular will get to be a pain in the derrier very quickly. You can expect nasty phone cals and letters on a very frequent basis. When we were going through it, I treated it as a bit of a game to play with the callow youths manning the call centre. However, my other half found it to be extremely distressing and intrusive. Please do speak to CCCS before deciding anything