Voluntary repossession

Tina2018

Hi,

I would be grateful if you anyone could give advice and guidance. I’m planning to go bankrupt in couple of months. I stopped my mortgage payments to save for bankruptcy fees, future accommodation etc.. I just received a form my mortgage company asking for my expenses. Looks like an SOA that people receive after going bankrupt. At this point, do I reply to the bank or write a letter that I’m intending to surrender the property and asking them to arrange repossession. Or do wait and I hand my property over to the OR once I proceed with my bankruptcy petition.

Thanks

silvercar

Are you definitely giving up the house? It is possible to go bankrupt and remain in your property if it is affordable.

Joa1210_2

I Vr'd in 2017. I stopped paying the mortgage and moved into rented property. VR'd in April the house sold in July but I didn't get a final figure of what I owed until September/October so I didn't go BR until I had that figure. I also had secured loan on the house so there was no equity in there at all of was northern rock together mortgage and I have to say it was simple and easy to do.

Tina2018

Silvercar, i would like to move out as the property needs a lot of work done.

Christopher_Melocco

That's tough, man. I was at the breaking point 2 years ago. But now I'm back on my feet. You're going to make it!:money:

luvchocolate

Hi it will take some time before the lender will take possession usually wait until 6 month missed payments before starting court proceedings.
I am aware you are looking at voluntary giving up the property.
I would get a rental property sorted as soon as possible before your credit report gets any worse.
Hopefully money saved from payments will make this possible.

fwor

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debt_doctor

Hi,

You can go bankrupt now or later - any shortfall from the house sale / possession will be part of your earlier bankruptcy.
Don't sign any voluntary surrender forms - especially after your bankruptcy.
DD

Annie35

I VR'd in August 17 & it took 6 months of non payment before it went up for sale, 6 months to sell & 1 month for the bank to find me & send me final shortfall statement. (Actually a very kind letter with 6months grace before they would take any recovery action). I then went BR.

I'd agree if your going to rent get moved now before your credit takes a hit (it will be very hard to rent on the open market after VR & BR!).

I just moved out & didn't tell anyone my new address so I assume I have a years of utility's in debt & my understanding was if I went BR same time as VR I'd be liable for these utilities as it was debt accrued after BR. (Is this correct thinking community?)