To sign or not too sign

Sunshine2114

So m n a IVA we have decided to fail it and go BR .. Should have done that 6 months ago rather than IVA but hey ho .. So I'm needing to move hose to !!!!!! one due to growing family n no room .. I'm in 15K negative equity and git £50k debts approx shared with hubby .. So we have a new place to live sorted n ready to go 01/03/2023 but our mortgage is a grey area ... We know u can put the negative into BR BUT do we sign the voluntary surrender forms or not ,,

We got them today and this is the letter

I/we voluntary surrender possession of the above mentioned property to uou and agree to the sale of the property

The proceedings of the sale will be applied to the account to pay off on whole or in part the balance outstanding . Any surplus funds will be used to reduce the outstanding unsecured loan balance

I/we understand that should th e sale proceeds be insufficient to pay off the total amount outstanding , you and/or any insurer providing mortgage indemnity cover reserve the right to pursue me to recover the shortfall .

if you have any unsecured balances with us ( we do of 20k inc in our IVA ) in the event that the proceeds off sale of our mortgage property after deductions of the coat of sale and associated expenses, exceed the amt of the secured element of my/our loan the I/we nearby confirm that theses excess monies may be applied in recu tin of my/our n secured borrowing . I/we understand that the foregoing is subject to any third party charges there may be against the property or I/we becoming bankrupt or entering into a formal agreement with creditors prior to the completion of the sale of the property and application of the process of sale.

On receipt of the forms we will take possession. N the rest I'd about moving out and taking your stuff

so do I sign the house over on the 01/03/13 knowing ill be going bankrupt in June/juku once I'm received from my IVA or do I have to just nt pay the mortgage and allow for standard repossession takes,ave taking up to 9 months and be liable for council , tax etc

fermi

The way I read that, you would be fine signing it as long as your plan to go BR afterwards. Which will always be the case, as a BR afterwards trumps anything you might have signed before.

But as always, if you are unsure give somewhere like National Debtline etc a call to double check.