Housing questions - need some pointers

DerekW

Hi all.

I have now not been a bankrupt for 8 days, and it's a good feeling let me tell you. For all those considering or struggling, can I just say that it does come to an end sooner than you think it will, it feels like a life sentence when it happens.

Anyway, to my point.

I have not heard anything about my house since going BR, I know that, in the words of the Bard of Rusholme, Morrissey, these things take time, but both myself any my OH would like a completely fresh start now I am out of BR.

Luckily, when we got married, we never registered anything as a couple, so we have another house that is in the wifes name only - which she currently rents out and this ends in January; the house that the OR is interested in is in my name only.

Once the mortgage, secured loans and a charging order are paid off there will perhaps be a little equity left in the property, maybe a slight shortfall; but it isn't going to be an enormous amount either way I shouldn't think. I have no contribution to pay.

Still, the mortgage, loan and order take up almost £700 per month, and as we are now planning a fresh start, this amount would come in really handy if we were to be able to just hand over the house and let the OR and the other interested parties sort it out between themselves as there isn't any need for us to stay here any longer. Is this is something that would be possible to suggest to the OR when I mail him over the weekend?

I have also read that if there is a shortfall, I will receive letters asking to take responsibility for the shortfall - I believe I can just ignore these and any amount left unaccounted for would be taken and swallowed up with my BR order - there are no new debts on the house.

8 days discharged and now the questions start all over again, can anyone help point me in the right direction?

One more question, and I had no idea that this was going to happen to me. I was discharged on the 9th Dec and on the 14th Dec I had a meeting with my head of European dept. who told me that I was going to get a pay rise for the good work I had done this year (this is an ad-hoc rise, not the companies yearly round up of bonus payments and rises which I will still receive in addition to this rise in 2011) - this will take effect on Jan 1st 2011. Do I need to inform the OR about this? I am sure this would take me over the limit of not having to pay a contribution.

Thanks a million for any advice;

Derek.

IF

Hi Derek, I didn't go through this process myself. But here are a few things to read until someone can advice further.

Best wishes
If...x

Click on blue links below:-

Your home/property.

• What will happen to my home? (IS) (pdf)
• FAQ - Bankrupt's Home under the Enterprise Act (IS)
• OR's Case Help Manual - Family Home
• If my house is sold sometime after the bankruptcy order is any shortfall on the mortgage still a debt in my bankruptcy?
• Charging orders in the county court - National Debtline factsheet (useful if a creditor is trying for a CO before your bankruptcy)

DerekW

Thanks If.

Just knocked this together to try and find out what I can and can't do.

Looking back at the mail thread with the OR, in April there was £5,287 equity in the property after mortgage/ secured loan & charging order were taken into account.

I will leave the matter of the pay rise until I get some advice, it is the getting rid of the house we really want to sort out.


Good afternoon OR.

I am writing to you to request further advice in regard to my bankruptcy situation and the possibility of no longer having any interest in ***********.

Firstly, may I take the opportunity of expressing my thanks for your advice earlier in the year which I acted upon and I have kept up re-payments on both the mortgage and secured loan to allow us to remain at the property.

There was also a charging order from RBS in lieu of my overdraft which I have now had some correspondence from RBS about repayment terms - I have not replied to them as of yet, as I am not sure as to the rules of bankruptcy and this order. They are asking me to provide them with a schedule of repayments. Could you please advise of the course of action I need to take in regards to this matter?

Secondly, as far as I am aware (and according to the insolvency website) I am now discharged from my bankruptcy order; which again brings me to questions about my property.

I received a letter in the summer of 2010 asking if either myself or my partner would be interested in buying back the beneficial interest in the property and neither of us are, in which case, I believe that the home is now totally in the hands of the OR.

I neither wish for the home to be re-possessed by the mortgage/ secured loan companies nor to continue living in this house any more and having to make any associated payments upon it. As the bankruptcy has now been dis-charged, my wife and myself would like to begin to attempt to re-build our lives and I have been wondering if it would be possible to hand the house over, lock, stock and barrel, to the official receivers office and allow yourselves to come to an agreement with the secured creditors? Is there any way that this scenario would be allowable?

For avoidance of any doubt, I can categorically state that I have received no communication from yourselves other than the offer of buying back any beneficial interest (as we were not interested we did not reply to this) and a request for a new SOA with a possible early discharge from the bankruptcy order (which was replied to)

I would like to take this opportunity to thank you for any assistance or advice you could provide me with in regards to this matter, and would willingly make another appointment with you to discuss face to face if required.

Kind regards,

Derek W.

silvercar

I don't think you can throw the property at the official receiver. I think you would have to go for voluntary repossession and let the lender possess the property and give any proceeds from sale to the official receiver. I don't know that the lender would automatically want to voluntary repossess, so it may be a question of you selling it or waiting for the lender to repossess - I don't think it is as simple as you would like it to be.

MicheH

This is for you and the mortgage company I'm afraid. You can either stop paying the mortgage and have the process go through court, i.e. have the house reposessed or voluntarily give up the house to the mortgage company but do not sign any paperwork as you could be liable for the shortfall. Never sign anything, not even as a receipt for handing back the keys and especially look out for 'Deed of Acknowledgement'

The OR's office or RTLU won't take on selling your house or sorting things out with the mortgage company for you, it's still for you to arrange I'm afraid. Also look out for council tax liability until the house is in the possession of the company legally.

While you're a bankrupt or paying into an IPA you must always tell the receivers office about any change in finance so yes, even if the payrise will mean you will have to pay an IPA I'm afraid you still have to tell of the rise.

Hope to help a little even if it's not really what you want to hear.

ETA. Are you discharged or been a bankrupt for 8 days, there's conflicting details on your original post.

If you're discharged and are not already paying into an IPA, as I understand it, you will not need to notify the OR of any increase in pay.

BRSurvivor

Derek,

How have you got to discharge, without sorting out the house, mortgage and shortfall? Surely you had to sort this out before hand?

Did you include the Mortgage and presumed shortfall in the BR paperwork?

If you are discharged with no IPA/IPO, you shouldn't have to inform the OR of changes in income.

DerekW

Yes BRS all the details of the house were included in the paperwork for my OR interview, including two relatively recent valuations upon the house.

Mich - discharged for 8 days.