House Repo Court Forms...Help Needed!

KITTENPOP9

Hi, haven't posted on here for sometime but I remember how brilliant everyone was when me and hubby were going BR in 2010 and am hoping someone will be able to advise this time so....
Had house repo court forms in the post this weekend, not surprised because we stopped paying mortgage to NRAM in august....what I'd like to know is do we HAVE TO send them back? We don't want the house anymore so don't want to contest the repossession and we will have somewhere to live when it goes, I was thinking maybe we could send a letter saying we have no interest in the house?? Also, am I still correct in thinking that the mortgage shortfall and all legal costs will fall into mine and hubby's BR which happened in March 2010?
Any advice would be a massive help, many thanks in advance!

fermi

No, you do not HAVE to return them.

If I recall, the forms more or less presume you wish to defend the possession claim, and don't really refer to what to do should you not want to oppose it.

Sending a letter to the court instead stating that your are happy for the possession to go ahead usually seems a good idea, so the court is clear that there is no point in delaying things, and that there is a bankruptcy order in place that prohibits you from being liable for the shortfall or any legal costs.

If you can attend the hearing and don't mind doing so, then although not essential, could be a good idea, just so the court is extra clear and you know the outcome straight away.

You can point out that any legal costs, and future shortfall, are bankruptcy debts as defined under Section 382 of the Insolvency Act 1986.

“Bankruptcy debt”, in relation to a bankrupt, means (subject to the next subsection) any of the following—

(a) any debt or liability to which he is subject at the commencement of the bankruptcy,

(b) any debt or liability to which he may become subject after the commencement of the bankruptcy (including after his discharge from bankruptcy) by reason of any obligation incurred before the commencement of the bankruptcy,

Furthermore guidance from the Official Receiver states that:

A debt which is secured by a mortgage or a charge on a property is still a provable bankruptcy debt. The mortgage loan company is "a secured creditor" which means they have rights over an asset, the house, and can require the asset to be sold to pay their debt. These rights are not affected by the bankruptcy. On the making of a bankruptcy order the mortgage loan company could make a claim in the proceedings but, unless it wished to give up the security, could only claim for any (estimated) shortfall.

If you continue to live in the property it is likely that you will continue to make payments to the mortgage loan company to avoid the property being re-possessed. When the property is eventually sold any shortfall to the mortgage loan company is still a provable debt in the bankruptcy, even if you have been discharged, as you are released from the debt on discharge.

KITTENPOP9

Thankyou so much Fermi. I was pretty sure that would be the case regarding mortgage shortfall etc. I don't think I could face attending the hearing....I remember the BR court day only too well and how nervous I felt even though it went really smooth! I will send a letter stating that we want the repossession to go ahead and enclose a copy of the bankruptcy order too.
The hearing is on December 9th, am I right in thinking that we will then have to leave the property within 28 days? Also, the utilities...what is the process with the gas, electric and water? I am so desperate to get everything right so we can draw a massive line under the last six years and move on with a truly fresh start!
Massive thanks in advance again!

fermi

The above is about the extent of what I'm sure of on repossession issues, so hopefully others here can answer the above. If not National Debtline, Shelter etc are usually good at advice on those practicalities.