Can you be re-possessed twice?

buckers1969

My wife and I went bankrupt in March. We had already moved out of the property in February, and tried to get Northern Rock to take voluntary possession, which they wouldn't do unless I signed one of their forms.
After reading comments on this site I told them that I would not sign due to the liability cause.

They finally went to court to take possession of the property on the 4/10 and the bailiff is going in on the 12/12.

First Plus (second charge on the property) went to court on Monday (26/11) and they have also been granted possession.

I had rang the court prior to this hearing to telll them possession had already been granted to Northern Rock and also phoned the solicitor acting on behalf of First Plus.

Is this usual when you have two charges on the property?
I presume they can't both sell it?

(and I hope I've put this post in the correct place)

davetheman

We have had 2 court proceedings one for the secured loan - First Plus which occurred in Sept, now Northern Rock are taking us to court on the 11th December, I believe this is normal

ILW

buckers1969 wrote: »

My wife and I went bankrupt in March. We had already moved out of the property in February, and tried to get Northern Rock to take voluntary possession, which they wouldn't do unless I signed one of their forms.
After reading comments on this site I told them that I would not sign due to the liability cause.

They finally went to court to take possession of the property on the 4/10 and the bailiff is going in on the 12/12.

First Plus (second charge on the property) went to court on Monday (26/11) and they have also been granted possession.

I had rang the court prior to this hearing to telll them possession had already been granted to Northern Rock and also phoned the solicitor acting on behalf of First Plus.

Is this usual when you have two charges on the property?
I presume they can't both sell it?

(and I hope I've put this post in the correct place)

You will generally be liable for any shortfall whether you signed a form or not.

minicooper1961

ILW wrote: »

You will generally be liable for any shortfall whether you signed a form or not.

No I think I am correct in saying the shortfall will be included in the BR that is why it is important not to sign anything post BR as then you can become liable - I am sure someone else with far more knowledge will clarify. Good luck OP Mini xxx

freddy911

ILW wrote: »

You will generally be liable for any shortfall whether you signed a form or not.

Nonsense! why make comments when you clearly have no idea what your talking about?

http://webarchive.nationalarchives.gov.uk/+/http://www.insolvency.gov.uk/faq/faq.htm

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.
You may also find it helpful to read the Insolvency Service publications titled 'What will happen to my home'

silvercar

They finally went to court to take possession of the property on the 4/10 and the bailiff is going in on the 12/12.

First Plus (second charge on the property) went to court on Monday (26/11) and they have also been granted possession.

First Plus's loss. They would be trying to repossess it from Northern Rock. Clearly they are second in the pecking order for the sale proceeds and have now wasted court costs for themselves. Either they will realise this or their bailiffs will turn up at the front door and see the notices in the window and then the light will dawn. Either way it isn't your problem.

dojoman

ILW wrote: »

You will generally be liable for any shortfall whether you signed a form or not.

Totally wrong info, as long as you don`t sign anything any shortfall will go in to your BR as unsecured debt:)