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T O P I C R E V I E W
Tracey.ch
Posted - 19 March 2012 : 09:38:33 My husband and I are going through the Mortgage rescue Scheme. there will be a shortfall of about 30k and we have unsecured debts of 35K. Our intention is to go BR after the sale. However, I have been advised that if we sign a shortfall agreement with the mortgage company and then apply for B/R after completion, we could be subject to a B/R restriction order. If we dont sign the agreement then the MRS wont go through and we will be repossessed and still have the debt.
3 L A T E S T R E P L I E S (Newest First)
Niobe
Posted - 19 March 2012 : 18:30:22 In that case then I agree that it could be seen as acting fraudulently as you have no intentions of paying the money back.
The OP should definitely be upfront about this.
Follow through Make your dreams come true Don't give up the fight You will be alright 'Cause there's no one like you in the universe
Jan xxx
debtinfo
Posted - 19 March 2012 : 18:24:35 basically i think the OP is saying that they are going to sign a MRS scheme and agree to pay the shortfall off afterwards, so essentially they are gaining by remaining in the property (as opposed to just letting it be repossessed) at the cost of agreeing a monthly payment for the shortfall, however they have no intention of actually making the payments and instead intend to go bankrupt. So they get what they want whilst intending never to pay back, Although this is a slightly grey area, it could be seen as acting fraudlently.
I would suggest the best way is to be upfront, tell them that you intend to go bankrupt but they will still get a better deal by allowing the MRS without any anticipation of the shortfall being paid as a reposseiosn would almost certainly cost them more and they will likely get less at auction for the property.
At least that way it is all upfront with no suspicion of fraud
Niobe
Posted - 19 March 2012 : 12:11:39 Whatever you do, don't sign anything agreeing to the shortfall as you will remain liable for it.
You can go BR without involving anyone else. The house will be repossessed and everything to do with it will come into the bankruptcy.
Don't see why you would get a BRU though.
Why don't you speak to one of our experts for some free advice? Their details can be found under the expert link on the lefthand side of the page.
Follow through Make your dreams come true Don't give up the fight You will be alright 'Cause there's no one like you in the universe
