mortgage and secured lenders

alastairq

one of my secured loan lenders rang this morning

The key here is secured?

Therefore, until the property is re-possessed & sold, they will not be affected by any bankruptcy, so not the Official Receiver's concern.

With a secured loan, payments can be continued if so desired, prior to a BR petition, since the 'favouring of creditors' refers particularly to unsecured debt.

In fact, such payments can be continued right through bankruptcy, if the bankrupt wishes to retain the property itself.

What is clouding the issue is the fact that, once a property is sold, with negative equity..then, all charges on that property become unsecured...and will therefore fall into a bankruptcy..regardless of when that BR is petitioned subsequently.

But, until that sale occurs, all secured loans & credit remain separated from the effects of a BR.

However, preparation for the event is key...open basic bank accounts with either Co-op [Cashminder] or Barclays....

Co-op must be opened prior to becoming an Undischarged BR [and no need to make mention of BR at all.....to anyone!]..BArclays will accept whilst Undischarged..but they do not allow internet access for that period.


Other banks are prone to closing any account once they get a sniff of Bankruptcy..

andrewwales666

hi all. ive stopped paying the mortgage lender and the 2 secured lenders and have now just put a bond on a new flat,im handing the keys back,what do i say, and do i tell them that i intend to apply for bankcruptsy asp

alastairq

and do i tell them that i intend to apply for bankruptcy asp

I suggest not.

Bankruptcy cannot be pre-ordered.

A personal petitioner can decline to go through with the procedure right up until the Judge stamps the paperwork

Which is why, the petition is dated & timed.

In other words, you 'plans' are for your ears only.

[Why is there a rush to petition for BR?]

Once the decision has been made by your good self, then the actual date doesn't matter. Any shortfall of equity will still be included in your BR, wherever that date is.....as long as the relevant accounts pre-dated the BR.

andrewwales666

would just prefer to get it over and done

andrewwales666

should i tell the mortgage company and lenders that intend to move out in 4 weeks time ot at the last minute,the are sending letters and phone calls constantly and feel i should at least reply by letter

egrescrimp

Telling them you are moving out won't stop the phone calls, they will still call right up until the problem moves to another stage.

You could mention to them you are trying to deal with your unsecured debts via a debt charity and would like them to place the account on hold for 30 days to allow you to get to grips with your finances. This may give you a little bit of breathing space until you move out.