Volutary repossession then bankruptcy

FuzzyCub

credit_crunch wrote: »

i know this goes back to july but hopefully someone will see this :-)

if you go BR & your house will eventuallybe repossessed - how do you know the amount of shortfall for you negative equity (as it will be in my case)?

i heard if you go BR & estimate £50k negative equity, then say the house is finally sold 6 months later at £60k loss, your BR then restarts for another 12months to cover the £10k under estimate?

finally is it true that if ur car is valued at over £2k they can take it to pay towards ur debts?

I appreciate it probably doesn't make much sense the way I have worded it but hopefully someone will catch my drift ;-)

Once your house is reposessed the mortgage debt will become unsecured, at this point it will become a debt provable in your bankruptcy. Your guesstimation of the shortfall is not relevant, and getting the amount wrong will not extend your BR.

But you should not sign anything from your mortgage provider that may acknowledge the debt -re signing for the debt so to speak. Should you do this after your BR date you may be liable for "new" debt of the shortfall. :eek:

alastairq

I believe your car can be taken if the value is deemed excessive, also depends if you need a car for work etc.

not quite as draconian as it seems.....

firstly, if the BR can demonstrate a 'need' for a car, then the OR give an 'exemption' for that car.

If it is valued over two/two & half K [this is trade-in, or auction value...as per Parkers?].......then the OR will'take' the car, but allow approx 2k for the BR to purchase a suitable replacement vehicle.


If no exemption is allowed, this does not preclude the BR from owning a car......such a vehicle will be deemed an asset, but much will depend on how much the OR will realise, after selling fees, etc and administration costs are allowed.

If the value does not amount to much, then the BR can offer to purchase the OR's interest in the vehicle.

The 'exemption' for a car also means, running costs, fuel, maintenance,etc can be allowed in the SOA.