Discharge Date

stephtie

My Discharge from Bankruptcy happens in 14 days time!
In the meantime my house was repossessed and has still not been sold by the Bank. This means the OR can not really work out how much I owe.
Once my discharge date comes, can I then later be made to make ANY payments or put on a payment plan for what I owe, or, Is that it once the date has gone?

Angiepange

Hi Stephtie and welcome to the board

When your house is eventuallly sold, whether its before your Discharge or after, any remaining shortfall will always be included in your BR, unless you have signed any liability forms accepting the debt.

There's some info below from the IS site that may help too.




From the Insolvency Service:

If my house is sold sometime after the bankruptcy order is any shortfall on the mortgage still a debt in my bankruptcy?


Quote:
Question: If my house is sold sometime after the bankruptcy order is any shortfall on the mortgage still a debt in my bankruptcy?

Answer:A debt which is secured by a mortgage or a charge on a property is still a provable bankruptcy debt. The mortgage loan company is "a secured creditor" which means they have rights over an asset, the house, and can require the asset to be sold to pay their debt. These rights are not affected by the bankruptcy. On the making of a bankruptcy order the mortgage loan company could make a claim in the proceedings but, unless it wished to give up the security, could only claim for any (estimated) shortfall.

If you continue to live in the property it is likely that you will continue to make payments to the mortgage loan company to avoid the property being re-possessed. When the property is eventually sold any shortfall to the mortgage loan company is still a provable debt in the bankruptcy, even if you have been discharged, as you are released from the debt on discharge.

Your bankruptcy does not affect the obligations of any joint owner who has not been made bankrupt to repay the mortgage loan debt or any shortfall, as they are still liable for the whole of the debt.

After the date of the bankruptcy order the mortgage loan creditor may ask you to sign a "deed of acknowledgment" of the outstanding debt. If you have signed such a deed the mortgage loan creditor can take action against you to recover any shortfall following the sale of the property.

fermi

stephtie wrote: »

Once my discharge date comes, can I then later be made to make ANY payments or put on a payment plan for what I owe, or, Is that it once the date has gone?

An IPA must be agreed before you are discharged.

So once you are discharged without one, that is it. No matter what happens.

Whether you get an IPA is decided on what you can afford, not how much you owe(d).

Angiepange

fermi wrote: »

An IPA must be agreed before you are discharged.

So once you are discharged without one, that is it. No matter what happens.

Whether you get an IPA is decided on what you can afford, not how much you owe(d).

Ahh thanks Fermi !

I may have got hold of the wrong end of the stick

I thought the OP was referring to being liable for any shortfall from the sale of their house, not a potential IPA !!

Sorry for any confusion

stephtie

fermi wrote: »

An IPA must be agreed before you are discharged.

So once you are discharged without one, that is it. No matter what happens.

Whether you get an IPA is decided on what you can afford, not how much you owe(d).

So who agrees a IPA with me? The OR ? and would it have been done by now if the date is so near?

fermi

The OR. Pretty much too late for them to sort one out now.

stephtie

Thanks for all your help guys!:T