Bankrupt and have a suspended possession order...can I just walk away from my propert

Richierich333

Hi all,

Firstly, if I'm in the wrong place I'm sorry, secondly, this is my first ever post on a forum so be gentle.

I have a question I was hoping someone could help me with.

I petitioned for bankruptcy in sep 2010 and my flat was subjected to a suspended possession order provided I keep up my payments and repay some of the outstanding debt.

I'm terribly unhappy in my flat, permanently struggling and stressing and just want to leave...can I simply just give the building society the keys and will the shortfall from sale still be applied to the bankruptcy leaving me free to start over?

Any advice would be greatly appreciated,

Rich

Very confused, worried, extremes unhappy

Mouse1812

Richierich333 wrote: »

...can I simply just give the building society the keys and will the shortfall from sale still be applied to the bankruptcy leaving me free to start over?

So long as you have not signed any agreement after the date of your bankruptcy accepting liability for the shortfall and

So long as the mortgage is in your sole name then

yes, you can walk away and the eventual shortfall will go into your bankruptcy.

StepChange_James

Richierich333 wrote: »

Hi all,

Firstly, if I'm in the wrong place I'm sorry, secondly, this is my first ever post on a forum so be gentle.

I have a question I was hoping someone could help me with.

I petitioned for bankruptcy in sep 2010 and my flat was subjected to a suspended possession order provided I keep up my payments and repay some of the outstanding debt.

I'm terribly unhappy in my flat, permanently struggling and stressing and just want to leave...can I simply just give the building society the keys and will the shortfall from sale still be applied to the bankruptcy leaving me free to start over?

Any advice would be greatly appreciated,

Rich

Very confused, worried, extremes unhappy

Hi Rich,

Thanks for posting and welcome to the forum.

Provided the secured debt was listed on your bankruptcy forms when you went bankrupt then any shortfall resulting from repossession should be treated as a pre-bankruptcy debt and included within the bankruptcy.

The first thing to do is to contact your official receiver and explain the situation to them. They will be able to check your file to make sure that it would be covered and that should clear things up for you.

If you go for voluntary repossession then be careful of what you sign. As I mentioned to someone else in an earlier post, sometimes there will be small print saying shortfalls cannot be included in bankruptcy. If this is the case then it's usually best not to sign and allow repossession without signing their forms.

Kind regards

James

Richierich333

Many thanks for getting back to me, I do feel better now.

Yes the property was listed on my original debts, or rather the mortgage amount.

I have somewhere else to go, do I need to give them the keys or simply just vamoush?! I believe they change the locks anyway don't they on repossession?

Again, thanks for getting back to me, you wouldn't believe how difficult it has been to find this information, I've literally trawled through hundreds of sites...

Keep up the good work!

Rich

Richierich333

Mouse1812 wrote: »

So long as you have not signed any agreement after the date of your bankruptcy accepting liability for the shortfall and

So long as the mortgage is in your sole name then

yes, you can walk away and the eventual shortfall will go into your bankruptcy.

Mouse1812...thanks for taking the time to reply...feel much better now!

Cheers

Mouse1812

StepChange_James wrote: »

Provided the secured debt was listed on your bankruptcy forms when you went bankrupt then any shortfall resulting from repossession should be treated as a pre-bankruptcy debt and included within the bankruptcy.

Actually it does not matter, while it should have been included, the omission from the bankruptcy forms would not prevent it from being a bankruptcy debt.