Do we sign voluntary repossession forms before bankruptcy???

csfts

Hello,

Can I please have some clarification ;0(

We have just moved into our rented property (all in prep for going bankrupt, had lots of previous advice etc) only this weekend and NRAM have sent out voluntary repossession forms for our mortgaged property, do we sign these??

I am so so frightened we will end up liable for the shortfall, what happens is we do not???

Should we still pay c-tax and house insurances??? We cannot really afford to pay for two houses ;0(

We have booked an appointment to petition for bankruptcy on 2nd July and so unsure now ;0(

IF

Hi csfts, Bumping for another poster to advise further as I know it is fine to sign a voluntary repossession forms before you have gone bankrupt but not after. As we don't know your circumstances and if I was you I wouldn't sign anything until I have spoken to the Debt charity who is helping you first.

Fermi's sticky and some other threads may help.

Voluntary repossession forms and bankruptcy - click here

Dawlish’s thread - Click here

How long does it take to repo a property - Click here

Tim's post is important too

BB&B wrote: »

When you leave a property that is going back to repossession, it is up to you to have the utilities CLOSED* down, that is they should physically come out and shut them off.

If you don't do this then, you can be liable for any and all costs until the property is sold.

Just moving out and telling the utilities that you have handed it back to a mortgage company doesn't count until, as they say, there is either a court order or letter from the mortgage company accepting liability.

The same applies with Council Tax, which you remain liable for, but you can get an exemption on, unfortunately utilities don't normally give the same exemptions.

*Closed down means:

Electric - The Electric Company comes out and removes the master fuse.
Gas - The Gas company comes out and caps the supply.
Water - The water company normally agree a cut off, they really actually cut the water off

An unoccupied property dwelling is exempt indefinitely where the liable Council Tax payer has been made bankrupt and liability would fall to a trustee in bankruptcy. Just clarify its exempt, as long as it stays the responsibility of the trustee/OR in your BR (and remains unoccupied).

Again something Councils fail to tell people.

Ref SI 1993/150

Some people have buildings insurance and include this in their BR and some don't have it, as really it now belongs to their lender.

Best wishes
If...x

NeverAgain_2

One option for the repo is simply to walk away and let it takes its course.

If you don't want to do that, you could write to the sender of the form saying, in very few words, you are going bankrupt and will not oppose any possession order.

vax2002

what did they do to help you ?
if the answer is nothing, return the favour, let them waste money on court orders.

ellaybee

We just walked away and let It take its course, or rather, we moved away first having rented it out to so-called friends, they did a runner last March and it has only just last month been put up for sale. I wish we'd written a letter to our mortgage company handing back the keys because I think then we'd have been able to claim exemption from Council Tax as its back in the possession of the lender...as it is we're still paying 50% rates and not really sure how to get the ball rolling as we have purposely not contacted them, despite their 100s calls.

Good luck!

SteveABC

Hi there

Can only share my experience with you.

I also had to walk away from my mortgaged property just before BR.

I didn't inform the lender (NRAM also) and I didn't sign any forms. I just let things take their natural course and ensured that the mortgage debt and any resulting shortfall were included in my list of debts on my SOA.

In my case, NRAM were extremely slow to do anything. Took them 9 months to issue forms for repossession, which again, I didn't sign.

I continued to pay just the buildings insurance on the old property, and had to apply to the council to be rated nil for council tax. I informed the council that the house was empty and unfurnished and that I was BR and they didn't then charge me council tax.

As long as the mortgage debt is on your SOA you won't be liable for the shortfall.

There is something called a "deed of acknowledgement", which would make you liable if you signed it, so I just didn't sign anything at all, just to be on the safe side.

Take care, and the year will really fly by.

Good luck.

Tupperware_Queen

I was told to keep the buildings insurance going on the property until the bank had accepted responsibility, just in case something happened.

csfts

Thanks guys,
Very helpful and encouraging messages!! The charity funding towards the costs are not debt advisers, the national debt line and pay plan have been our main point of contact.
I don't think I will sign them now, and will call the council tomorrow to discuss exempts etc...fingers crossed!!!

csfts

ifwisheswerehorses... wrote: »

Hi csfts, Bumping for another poster to advise further as I know it is fine to sign a voluntary repossession forms before you have gone bankrupt but not after. As we don't know your circumstances and if I was you I wouldn't sign anything until I have spoken to the Debt charity who is helping you first.

Fermi's sticky and some other threads may help.

Voluntary repossession forms and bankruptcy - click here

Dawlish’s thread - Click here

How long does it take to repo a property - Click here

Tim's post is important too





Some people have buildings insurance and include this in their BR and some don't have it, as really it now belongs to their lender.

Best wishes
If...x

AM I TO ASSUME FROM FERMI'S POST I CAN SIGN THESE FORMS NOW AND RETURN AS MY BANKRUPTCY PETITION IS 2ND JULY, THEREFORE MAKING THE PROCESS A WHOLE LOT QUICKER, I CANNOT AFFORD COUNCIL TAX AND INSURANCES, EVEN WITH A 6 MONTH EXEMPTION??

DAWLISH'S POST = I DIDN'T EVEN KNOW REPOSSESSION RESULTED IN A COURT APPEARANCE??? ;0(

this is all so so confusing ;0( I feel so lost with it all ;0(

NeverAgain_2

To gain possession the lender must apply to a county court.

This results in a hearing which you can attend, but don't have to.

Letting the lender know in advance you will not be opposing the possession may speed the process - that's why I suggested you write to tell them.

They can then wave your letter in front of the judge.

SteveABC

There is a court process for the repo to go through. I had letters from the court, which I didn't sign or return. I didn't go to court either, but out of courtesy I just wrote to the court stating I was BR and would not be attending or opposing the repo, and not in a position to pay any court fees.

The other thing that happened to me was NRAM sent someone to my (new rented) house to discuss things with me just prior to the repo. In their defence I think this was to see if there was anything they could do prior to going through the repo process. I was out when their representative called - I just phoned him to say there was no need to call back as I was not opposing the repo.

I didn't hear anything else and the repo just happened without me being involved or signing ANYTHING.