bankrupcy and mortgage repossesion not wiped off

amarillo123

can any one on here please try to answer this for me ... i have got my self into a terrible financial position thru one thing and another having previously had a1 credit . to selling my house because buying a investment property that went t..ts up .i need to go bankrupt after racking up a lot of debt within a short space of time , however i have a 100% mortgage with KENSINGTON mortgages , they repossesed the property july 09 and after speaking to them they are supposedly trying to sell the property , i guess the loss on it will ba about 50-55k , i have been told by kensington that if i go bankrupt that is up to me but they have a deal with their solicitors that means the outstanding debt will be forwarded on to me even if i decided to go bankrupt ??? how can this be >? i have read all about the dodgy subprime lenders kensington are but surely they cant do this to me ? help? the last thing i want to do is go bankrupt then have this hanging over me after

nervousmother

Hi, if you go bankrupt now before the property is sold they can still come after you for the debt as it is a secured loan and secured loans are not inc in BR.

Once the property is sold howere the debt then becomes unsecured and it automatically falls into your BR.. so they dont know what they are on about but can chase you (you dont ahve to pay) until its sold..

amarillo123

thanks , so is it best to wait til the property has been re sold on from them , then go bankrupt after they send me the bill ? cos they reckon i am still covered to pay it off , if i aint got no money how the hell can i have a 50 -55k debt to pay off , i will be in sh .t street any way after i go bankrupt , thought things supposed to get better after ya go bankrupt

CCCS_Matthew

nervousmother wrote: »

Hi, if you go bankrupt now before the property is sold they can still come after you for the debt as it is a secured loan and secured loans are not inc in BR.

Once the property is sold howere the debt then becomes unsecured and it automatically falls into your BR.. so they dont know what they are on about but can chase you (you dont ahve to pay) until its sold..

Hi there.

The above isn't true I'm afraid. If you were to go bankrupt before the property were sold/repossessed you would not be liable for the shortfall, providing the mortgage were taken out before the bankruptcy date. As soon as the property is sold/repossessed the shortfall becomes an unsecured debt which by default would be wiped as part of the bankruptcy.

Even if the property is repossessed after you have been discharged you would not be liable. Often lenders try and make out that you would be liable to persuade you not to go down this route as they don't want to lose out. There have also been cases where a lender tries to get you to sign an agreement that suggests you accept liability outside the bankruptcy, which is something you would certainly not want to sign.

Hope that clears it up.
Matthew.

debtinfo

Im sure that is what NM just said, they can continue to pursue you until the debt becomes unsecured at which time it becomes part of the bankruptcy.