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T O P I C R E V I E W
Maz
Posted - 14 April 2009 : 13:50:38 Hi
I sent an e-mail to the OR's office saying that we had included the potential mortgage shortfall on our home on our SOAs forms and assumed when we get repossessed the debt will be written off. This was his reply:-
"I think I explained before that whether or not a debt was included on the statement of affairs doesn't affect whether or not it falls within the bankruptcy. This is decided by whether or not the debt relates to an obligation that you entered into prior to the bankruptcy.
While the mortgage agreements were entered into before the date of the bankruptcy order, there are some circumstances in which an agreement made before the bankruptcy can be treated as having been renewed later, for example if you were to sign papers that it was not in your best interests to sign."
I a bit worried now. What do you think? thanks
2 L A T E S T R E P L I E S (Newest First)
John
Posted - 14 April 2009 : 18:31:49 Hi
the document in question is a "Deed of Acknowledgement". Provided one of these has not been signed the shortfall will be included.
In answer to your question RHB, yes you would be liable for the shortfall. As soon as you buy the BI back your position reverts to as it was if bankruptcy had not taken place i.e. to include the shortfall in your scenario you would probably need to declare bankruptcy again.
That said one would hope that several years down the line you would have plenty of equity.
John White England Jackman & Spacey
RHB
Posted - 14 April 2009 : 14:22:23 I assume that relates to these signatures that some banks are asking for that says you are still required to stump up for any shortfall after repossession.
One thing that is still puzzling me, & maybe an expert can help on this. Say my house was in negative equity, I went BR & bought the BI. If after I was discharged & several years down the line I say lost my job & couldn't afford the mortgage any longer would I then be liable for the shortfall if the house was repossesed?
