Voluntary Repossession

tommo2007

Hi all

Quick question, hope it's a nice easy one. I've done a search and can't find the exact answer, so sorry if it's been asked before.

Basically I was declared bankrupt Dec 2010, my ex-partner who I had a mortgage with at the time has kept the mortgage (no equity) and the property pending review at 2yrs 3 months. As stated there is absolutely no equity, shortfall of about 13k!

She now wants to give up the property by voluntary repossession, do I need to contact the OR to do anything in this case?

Or does she directly approach the bank and then they will do it all?

Sorry if this is an obvious answer, my head is everywhere though today!

Thanks for any help

Tom

National_Debtline

Hello there.

You should have placed information about the mortgaged property within the bankruptcy petition already - this should have gone in section 4 of the petition. If the property was purchased prior to the bankruptcy any mortgage shortfall would automatically be written-off once the house has been reposessed. You should let the OR know of the change in circumstances.

An important piece of advice: You may find that the lender asks you to sign a 'deed of acknowledgement' once the repossession has taken place. This could make you liable for the shortfall post-bankruptcy. Don't sign it!

Also if your ex-partner has not petitioned for their bankruptcy they would be solely liable for the mortgage shortfall debt. They will need to consider their options.

Hope this helps!

National Debtline.

tigerfeet2006

Write/email your OR and just keep him appraised of what's happening as it happens.

ETA: and NDL got there with a better answer than mine :-D

tommo2007

National_Debtline_representative wrote: »

Hello there.

You should have placed information about the mortgaged property within the bankruptcy petition already - this should have gone in section 4 of the petition. If the property was taken out prior to the bankruptcy any mortgage shortfall would automatically be written-off once the house has been reposessed. You should let the OR know of the change in circumstances.

An important piece of advice: You may find that the lender asks you to sign a 'deed of acknowledgement' once the repossession has taken place. This could make you liable for the shortfall post-bankruptcy. Don't sign it!

Also if your ex-partner has not petitioned for their bankruptcy they would be solely liable for the mortgage shortfall debt. They will need to consider their options.

Hope this helps!

National Debtline.

Hi there

Thank you for the information.

No, my ex-partner has not petitioned which she will speak to citizens advice for her own means.

The mortgage was in the BR petition originally so the OR knows all about he mortgage. I will not sign anything!!

So, in my circumstance I would need to contact the OR to tell him that my ex is looking to voluntarily hand the property over? It is me that needs to make this contact to let him know the plan she has?

Thanks again for such a quick response.

Tom

tommo2007

tigerfeet2006 wrote: »

Write/email your OR and just keep him appraised of what's happening as it happens.

Thank you for the advice, in that case I will let him know later.

I wasn't sure if I needed to as it will not be me making the contact to actually voluntarily hand over the property. I thought maybe I had to wait for her to actually contact the bank first.

Thanks

Tom

tigerfeet2006

Once she has started the process then it just keeps the OR in loop for when the shortfall lands in his lap.

National_Debtline

tigerfeet2006 wrote: »

Write/email your OR and just keep him appraised of what's happening as it happens.

ETA: and NDL got there with a better answer than mine :-D

Thank you! :beer:
Good luck Tom.