Bankruptcy help

regularsaver1

Thank you for your response

pink_phantom

I would have thought that when a person was made bankrupt, any debts that were there at the time would be under the control of the official reciever and that the creditors are not allowed to contact the debtor to chase for payment after the bankruptcy has been declared. So surely this would mean that any creditor that put a charge on a house before the bankruptcy would loose this once the bankruptcy had been declared as all debts must go via the official reciever?

ianian99

why doesn't she remortgae her half of the house and pay the money ?

Addicted2Chocolate

no. if a creditor has got a charging order absolute before the bankruptcy they are a secured creditor, like a mortgage. so they get paid from proceeds from sale, any money left over after all charges and costs paid then goes to the Trustee.
Bankruptcy only deals with unsecured creditors.

pink_phantom wrote:

I would have thought that when a person was made bankrupt, any debts that were there at the time would be under the control of the official reciever and that the creditors are not allowed to contact the debtor to chase for payment after the bankruptcy has been declared. So surely this would mean that any creditor that put a charge on a house before the bankruptcy would loose this once the bankruptcy had been declared as all debts must go via the official reciever?