Voluntary Repo of house before BK?

Dave1971

Myself and my wife are due to file for BK and have a joint mortgage. I was wondering do we apply for the voluntary repsession forms and send them off (Northern rock) before we petition for BK? Are there sections of the Vol repo form that i dont fill in i.e the statement that i am liable to amy shortfall?

thanks

tigerfeet2006

Don't send for any forms. Write your own letter and send the keys back recorded delivery when you move out of the house. Don't sign anything they send to you.

Dave1971

tigerfeet2006 wrote: »

Don't send for any forms. Write your own letter and send the keys back recorded delivery when you move out of the house. Don't sign anything they send to you.

Is it ok to hand the keys back and move out after BK? Will the shortfall (house worth 90K, Mortgage 90K, 30K unsecured loan, 3K early redmption all with Norhern rock) then fall under the BK. I thought any debt incurred after you petion and are granted BK is disregarded

fiveyearplan

You incurred the debt before BR though so it can all go into BR. Is the 30k unsecured or secured debt? If it is unsecured are you really sure you want to give up your house?

dollparts

FYP- your advice is always so helpful- thank you so much.

I'm joint owner with my exhb, if he were to go BR at some point after me would they still regard it as a debt incurred before my BR?

Dave1971

fiveyearplan wrote: »

You incurred the debt before BR though so it can all go into BR. Is the 30k unsecured or secured debt? If it is unsecured are you really sure you want to give up your house?

Its unsecured but have a bank loan of 8000 and combined credit card debt of 7000. We both recently lost our jobs and are looking to rellocate back to germany where my wife is from originally. We have very little chance of selling the house at the full 90k which would see us break even and just have to find the 30k unsecured and other debt.

fiveyearplan

dollparts wrote: »

FYP- your advice is always so helpful- thank you so much.

I'm joint owner with my exhb, if he were to go BR at some point after me would they still regard it as a debt incurred before my BR?

Yes, you would have to list the property on BR forms and it would be included if you wanted it to be.

fiveyearplan

Dave1971 wrote: »

Its unsecured but have a bank loan of 8000 and combined credit card debt of 7000. We both recently lost our jobs and are looking to rellocate back to germany where my wife is from originally. We have very little chance of selling the house at the full 90k which would see us break even and just have to find the 30k unsecured and other debt.

My point was - if the £30k was unsecured you could still keep the house if you wanted and all the unsecured debt would fall into your BR.