Hi all, hopefully this is in the right forum, if not then I'd appreciate if it was moved!

Back in July of last year I attended court for a possession hearing on my property that I jointly owned with my now ex wife. A 28 day order was granted, and I was served by post. As my ex didn't appear she had to be served personally. She evaded service so the house has still not been repossessed. It has been vacant since I moved out in July last year. I called up a few weeks ago and used my key to get in. Pipes have burst etc and it's in a bit of a state so when it comes to selling I'd imagine it will have quite a shortfall.

The solicitors dealing with the possession have contacted me and said my ex got in touch and has offered to voluntarilly surrender the property. They have since sent me a form to complete and sign for voluntary surrender also.

If I moved out because of a possession order being served on me would a voluntary surrender even be valid? I left because of the court order...

The form is asking me to sign to accept I'm liable for costs and any shortfall etc. I'm obviously not happy to sign that, but I have my bankruptcy hearing tomorrow so it would probably be included in my bankruptcy anyway.

Does anyone have any advice on whether I should sign the voluntary surrender form, or just let them repossess as normal?

Thanks..

Edit: This is in Northern Ireland, if that makes a difference.

Hi,

I'm in a similar position to you. Is your possession order from the Mortgage company or a secured loan?

Either way, i wouldn't sign anything. I think it's on the National Debtline website that has info about Mortgage shortfalls and i'm sure it says not to sign anything. If you do I have a funny feeling, they can come after you for the money, whether or not you go bankrupt.

I'm sure these banks/loan companies etc are getting wise to people going bankrupt and are trying any way to force people to have to pay them.

On the insolvency website, it says about property in bankruptcy, so have a read there too.

Speak to the OR, they will know what's best to do.

Hope i was of some help!

Jackie

Hiya Jackie, thanks for taking the time to reply.

Mine was for a mortgage. At this stage I'm not signing anything that will leave me liable for more debt, I'm in it deep enough!

If anyone else has any knowledge on this I'd be greatful for your advice. If not I'll speak to the OR after my hearing and let you know the score.

Thanks..

bump

Well, a possession order doesn't actually require you to leave your property. What it enables the mortgage company/ bank etc to do is apply for a warrant of possession. That means that the Court bailiffs come round, change your locks and remove your possessions. Until your mortgage company have applied for a warrant, you don't actually have to go anywhere.

You'll still be liable for any shortfall whether or not you surrender voluntary possession. What it does mean is that, if you voluntary surrender, you won't be charged the costs of applying for a warrant, the bailiffs attending, locksmiths changing your locks etc. These are usually added to the amount you owe.

Mortgage companies won't usually pursue you for the shortfall until you've bought another home. They've got 12 years to do it so they usually sit back, do nothing and let the interest increase.

If your declared bankrupt they won't be able to pursue you for the shortfall and will have to prove in bankruptcy and hope to get something like all your other creditors.

Hope this helps!