Declaring bankruptcy and handing back keys...

blueoceans1971

Hi there,

A friend of mine is about to apply for sequestration through Payplan Scotland tomorrow.

As part of the bankruptcy, she is handing back the keys to the mortgage company, and saying they can no longer afford the mortgage.

I've read various forum messages, and as far as I can make out they should send a letter dated, with account number, and letter stating they are handing back the keys, and can no longer afford the mortgage.

I've also read that they shouldn't sign any letter. Or any correspondance their mortgage company ask them to sign.

I have also read that they shouldn't ask about any possible shortfall, as this could make them liable.

I'm wanting to check both these facts with everybody out there who has been through this before.

Thanks in advance for your comments. She is definitely applying for sequestration, so please, no comments from anyone suggesting alternative routes to sequestration. She is 100% applying for sequestration. Thanks.

fermi

Please read ---> http://debtcamel.co.uk/repossession-deed-of-acknowledgement/

Signing the letter is OK. Not signing it will mean they ignore it. They may ignore it anyway, but not signing guarantees that.

What you must not sign after the bankruptcy date is any deed of acknowledgement or other document that says you agree to be liable for the shortfall.