Bankruptcy and voluntary repossession

[joolzh13]

Can anyone tell me if I hand the keys back on my house, the bank are saying I have to fill in a form.... I don't want to do this because I am being told that I will be liable for any shortfall / interest / fees what can I do about this?

 

If I know my house is worth less than the mortgage and I have £100k of debt (some of it secured on the house). if I go bankrupt once I've sorted out rented accommodation and then give back the keys my question is can I still be chased for mortgage short fall for up to 12 years. This is something I keep reading contradicting information over.

 

Also if I am splitting from a partner, he's worried that our hosue will be stripped of everything bar the shirts on our backs.. is this the case how does the Court / IPA know what you have. ie is a childs playstation & games and asset?

 

Does a lounge TV have to be sold for a cheaper alternative?

 

Does a push bike need to be sold or can it be kept?

 

Thanks for any help in advance

[Tawnyowl]

If you are married or joint names on mortgage they will chase both of you for shortfall.If one goes bankrupt and other doesnt they chase the one that hasnt.They will find you maybe 5 years down the line,you may have new partners,houses etc-mmm.Tawnyowlr The Insolvency Service Website r

[Tawnyowl]

You are allowed to keep:

“tools, books, vehicles and other items of equipment as are necessary to the bankrupt for use personally by him in his employment, business or vocation” in addition to “clothing, bedding, furniture, household equipment and provisions” necessary for satisfying the basic domestic needs of you and your family.

 

However there are conditions and those conditions centre around how valuable the property that falls into the above groups can be. A rule of thumb that is frequently used is £500. So if you have a car that is worth more than £500 that you use for work, chances are you’ll need to see it and get one for £500 or less and give what’s left over to your trustee. If your trustee tries to bend these rules push back – hard

[joolzh13]

Thank you Tawny Owl to clarify if we both go bankrupt, isn't the shortfall / missed payments included in the Bankruptcy even if the sale of the house is after the bankruptcy stamped date because its a debt incurred and declared at court?

 

Sorry but I have read the Insolvency website and didn't see anything that covered this question.

[Tawnyowl]

MMM-If the house house has been repossessed the shortfall will be included if not it wont be,Sorry taking so long-comp-probs.

[Tawnyowl]

Mortgage Shortfall | Debt Advice | Payplan

[Tawnyowl]

Debt Factsheets - Mortgage Shortfalls -just in case someone reading this thread needs more info on shortfalls-Tawnyowl