Repossession after bankruptcy

emmarbos

Hi

I am now a discharged bankrupt, since oct 2013. In my bankruptcy I included my personal debts as well as a loan with my ex.

Also included was the neg eq on my mortgage with my ex. I moved out of the property in 2010 and he moved his new gf in, and continued to pay the mortgage and the loan (which the loan was his anyway).

Since sept 2013 neither the loan nor mortgage has been paid by himself. According to rba policy it's 2 more months till repo.

How will this affect me if the property now gets repossessed?

Anyone been through this themselves?

alastairq

Hi..the re-possession should not affect you materially in any way.

Ensure you have complete financial disassociation with your EX.

This to ensure the re-po does not adversely affect your own ability to get a mortgage, should you wish to in the distant future.

You mention the unpaid loan?

Was this a secured loan, or unsecured?

Is it the 'joint' loan you mentioned?

I'm not sure what you mean, by including the 'negative equity on the mortgage' in your BR?

Was the mortgage actually in your name only? Or, joint names?

Was a new mortgage commenced by your EX?

I ask because shortfall doesn't get 'included' in a BR unless the property is actually sold [to realise a shortfall].

In any event, if the mortgage & loan are in fact 'joint', the creditors will contact you for the shortfall, just inform them of your Bankruptcy, 'tis all.

emmarbos

When we first purchased the house he had a loan which was put into joint names according to the bank for affordability reasons. A mortgage was then taken out in joint names.
This was in 2007just before the recession.

In 2010 the relationship broke down and I moved out. Since then he apparently has tried to get the mortgage in his own name but couldn't due to affordability, and even though the mortgage and loan were being paid continuously by him the ground rent and maintenance for the flat weren't, meaning after me moving out and before my br I had to clear the outstanding charges for this as a ccj was put on our names. After this he managed to tack this onto the mortgage and doubled his monthly payments.

The property was in apx £35k negative equity at the time of my br.

This amount was put down as neg eq under the debts section of my filings for br including the joint loan.

I was discharged in oct 13 and since sept 13 he has not paid either the joint loan and mortgage. Meaning that the property is nearing the stage of repo.

If the property goes into repo will they chase me for the shortfall or just him? Will my bankruptcy cover me even though I'm now discharged?

debt_doctor

emmarbos wrote: »

Will my bankruptcy cover me even though I'm now discharged?

Hi, yes it will.


DD

emmarbos

That's good news, been having a few sleepless nights about it.

What shall I do about cleaning up my credit file now then? Can I disassociate from the ex dispute having the joint mortgage and loan?

ani_26

Although the shortfall has been covered in bankruptcy, if the mortgage is still in joint names, you should be aware that if the property goes into repo, the mortgage lender will undoubtedly try to get you to sign a 'Deed of Acknowledgement'. You shouldn't sign this under any circumstances as you will then become liable for the shortfall, once again.

Neither of you should sign any documents you receive from your mortgage lender, at all.


http://www.beatmydebt.com/mortgage-arrears/voluntary-repossession.htm

You may be asked to sign a voluntary surrender form by your mortgage lender. This is normal and allows them to speed up the repossession process. The voluntary surrender form will confirm that you will remain liable for any mortgage shortfall after the mortgage lender sells the property.

Important: You should not sign any document which suggests that you will remain personally liable for repaying any mortgage shortfall after you declare yourself bankrupt or carry out an IVA. Such a document is often known as a Deed of Acknowledgement. You should not sign this under any circumstances.

If you are unsure then do not sign any document you receive from your mortgage lender without first getting professional advice. You can rest assured that given you are no longer paying your mortgage, the mortgage lender will repossess your property whether you sign a voluntary surrender form or not.

National_Debtline

Perfect explanation from Ani 26. As the liability started prior to the bankruptcy date it would be 'caught' by the order. Just don't sign anything.

Best wishes,

David @ NDL.

emmarbos

My concern here is that we now do not have any contact at all I don't even have the right email or telephone. So he could very well sign this himself. If he signs this but I don't would that be ok or would that implicate me too?

Even if I managed to tell him not to sign he'd be spiteful enough to sign it.

fermi

To make YOU liable, YOU would have to sign it.

ani_26

Paying the loan

With a joint mortgage all the borrowers will be equally responsible for keeping up the repayments, even if someone moves out. The lender can chase any one of you for the money if someone fails to pay. In practice the person who stays will often end up paying.


If you have a joint mortgage, you can both be:

• told if the mortgage has not been paid
• allowed to pay the whole mortgage
• involved in any repossession proceedings.

and therefore involved in paying any shortfall.



Any or all of the parties to a document may be required to acknowledge it.


Did you have two signatories required?



I feel for you x

emmarbos

Confused

Yes I understand tht I would be liable in normal circumstances

Just confused over my bankruptcy. This indicates below that your suggesting I would be liable ?!?!?

ani_26 wrote: »

Paying the loan

With a joint mortgage all the borrowers will be equally responsible for keeping up the repayments, even if someone moves out. The lender can chase any one of you for the money if someone fails to pay. In practice the person who stays will often end up paying.


If you have a joint mortgage, you can both be:

• told if the mortgage has not been paid
• allowed to pay the whole mortgage
• involved in any repossession proceedings.

and therefore involved in paying any shortfall.



I feel for you x