Repossession or Voluntary Repossession?

confuzzled2012

Hi, i'm moving into rented accomodation with my children and giving up my home (long story but due to relationship breakdown 3 yrs ago, huge negative equity, housing market stale, not enough money, it's the only option) I will most probably have to go bankrupt eventually with the shortfall, i'm wanting to know does it matter if i do a repossession through the courts or voluntary repossession for my shortfall or are both the same and can be included in bankruptcy?

thanks
Confuzzled

Anondebtadvisor

When you voluntarily surrender a property the lender will ask you sign forms - within these forms is a clause which can make you liable for the shortfall even if you do go Bankrupt.

I suggest you avoid signing these forms and let them repo through the courts - although doing will this incure further legal fees and costs - so more debt at the end of the process but it will all go into the bankruptcy at the end of the day.

When you stop paying the mortgage it can take a long time for the mortage company to repo.

Anondebtadvisor

Couldnt remember the name of the clause, it is " deed of acknowledgment".

What the Insolvency Service says
Bankrupts cannot expect to be protected from the perils of the DoA by the Official Receivers.

A spokesperson from The Insolvency Service said, "The Official Receiver (who would only be involved once the person is already bankrupt) should not object to the completion of a DoA if he/she becomes aware that the bankrupt has been requested to provide such a deed.
"Instead the Official Receiver should suggest that the bankrupt seeks his/her own legal advice. It is not for the Official Receiver to influence the bankrupt about how to proceed in this matter".

confuzzled2012

Do not understand that last message at all? So it's best to let repo through the courts then, i'm moving out end of month into rented, i've done this now so i am still in control and can choose where i live etc, i have to consider my childrens schools.
thanks for your advice, anymore would be great.

averagemummy

I am in the same boat as you confuzzled - hope it works out for you. We've only just been hanging onto the house but I think it will all have to go, we can't carry on as we are. Does anyone know how long a repossession takes? My biggest worry is the family finding out, we're only in a v small town.

Hope it all works out for you x

confuzzled2012

Do I tell the mortgage company my new address or just have phone contact for the repossession?
Do I sent my keys back?

Anondebtadvisor

A reposession can take many months through the courts:

You wil 1st receive a claim form from the court - with a court date, you can go to the hearing and defend yourself, offer to pay the arrears in instalments or just ignore it or send a letter saying you have no objection to the house being repossessed.

At the hearing the judge can decide you need leave and set a date for this -- if you do not leave by this date they then need to go back to court to get an order for eviction.

It is the eviction date that the mortgage company will turn up and change the locks to the house.

If you decide not to tell the mortgage company your new address they will find you eventually through a tracing agent - better to give your address than a telephone number.

You can post the keys back but you will still be responsible for buildings insurance and council tax - although if the property is empty you can get a waiver for 6 months on the council tax - any council tax arrears can also be included in bankrupty

confuzzled2012

thanks that helps a lot, i'll be moved in 3 weeks time and repossession wouldn't of even started then, i only asked about the house address as i read it on another thread, i have no problem with them knowing my address as i'll be going bankrupt at some point anyway if i can't come to an arrangement with them, however my Income and Expenditure in a negative deficit so could only offer them a £1 like my other creditors.
I feel better knowing i've secured rented accomodation, they know my situation so it's not going to come as a shock to them later on and them decide not to let to me.

hamac

Dear All

This has been the most useful info to date. I have called quite a few people and they have not been able to provide answers with regards to voluntary repossession. So thank you.

I went personally bankrupt on 1st Feb this year and I actually want them to take the house back as I can't afford it and for me it will end this chapter of financial struggling. I also wanted to know whether to voluntarily hand back the keys and about the repossession process and you have answered my questions. My concern was the deed of acknowledgement and unknowingly signing something that I shouldn't.

I will be moving into rented accommodation at the end of the month but will check up on the house twice a week as I work part-time locally. I will empty it so can be exempt from council tax for 6 months but will keep the keys to just check all is ok. I will get buildings insurance for unoccupancy and just wait until the courts contact me I suppose. Does that sound about right to you?

Thanks

Anondebtadvisor

Absolutley hamac and any shortfall will go into the BR even if you are discharged before they repo/sell the house.

I suggest that you print a copy off the insolvency register to prove you were bankrupt so you have proof of BR if you need it post discharge.

averagemummy

Apologies confuzzled if we have hijacked your post, but hopefully you may find this useful as well

Anondebtadvisor wrote: »

or send a letter saying you have no objection to the house being repossessed.

If you send this letter to say you have no objection, could that be construed as a deed of acknowledgement?