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Jane.1
Starting Member
2 Posts |
 Posted - 16 August 2010 : 17:30:55
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| I was declared bankrupt last December and in February I decided to voluntarily surrender my house. I asked the OR about this or allowing it to be repossessed and the information I was given is that I would be liable for costs under repossession. They confirmed at that point that they had no interest in it. I received a form from the mortgage company re the VR which stated that they would be able to pursue me for any shortfall. Upon advice of a friend who is a legal adviser, and advise on several forums, I deleted this sentence and replaced it with "you may pursue the OR for any shortfall as part of my bankruptcy". I also advised the OR office that I was doing it and they said this would be ok, and sent them a copy of the letter. My house has now been sold through the mortgage company. The OR contacted me last week to say that they were very sorry but the shortfall was not part of the BR and that I shouldn't have signed the form as the deletion of the line will make no difference to the form being legally binding and giving permission for the pursuit of me in the shortfall. They said that I should have left it to get repossessed. They also acknowledge that they had mis filed it and only just cross referenced it. I explained that I had been given information that it was ok but they have denied that they are able to give advice. I am potentially liable for approximately £20k, as well as being on a three year repayment plan. Your advice would be appreciated as all the information I have had from the OR is contradictory. |
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Daniel Griffiths
Junior Member
United Kingdom
268 Posts |
Posted - 17 August 2010 : 14:37:47
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Hi Jane
I am very surprised no-one on the forum has commented on this thread as its one of the most interesting topics on the forum at present. Can I ask you what has your legal Advisor said about this situation and have you had it confirmed by a solicitor (Not an Insolvency advisor) that you are still liable this is surely a litigation matter not an insolvency matter. If a mortgage company send you a form and you delete certain contents of the form prior to agreeing to the balance of the form by signing it then that begggars belief to me how you can be liable for the contents you deleted, this is why you need to absoloutely sure this is the case here. |
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Melanie.n
forum expert
United Kingdom
1282 Posts |
Posted - 17 August 2010 : 15:55:30
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I completely agree with the comments made by Daniel Griffiths and am rather amazed at the OR's response (as ex OR's!) IF, it was as stated -unfortunately sometimes this forum can provide a rather one-sided position/explanation and without seeing the documents cannot categorically state what the correct answer should be
I (like others on this forum) always advise NEVER sign anything provided by the mortgage company when surrendering back a property. They will try to coerce you to do so, but never sign!
If the position is as you state, and neither side will alter their position, your only course of action will be to sadly file for bankruptcy again to get the shortfall included. Bizarre but sadly it has been known to occur before. I would speak to the OR (NOT the examiner/admin team member - ask to speak to the OR) and have the situation fully explained - if the same situation still stands perhaps they can offer a payment break from your IPO to fund the second bankruptcy costs
Melanie Nicholas
29 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
email me at melanienicholas@jonesgiles.co.uk
telephone 01792 899996
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charlie44
Junior Member
231 Posts |
Posted - 17 August 2010 : 15:55:31
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| I am under the impression that you should NOT sign anything at all. I don`t think crossing anything out would make any difference unless it was agreed by both parties. |
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Daniel Griffiths
Junior Member
United Kingdom
268 Posts |
Posted - 17 August 2010 : 22:45:12
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| The fact is she did sign and it's the present which needs dealing with, I think at this stage a second bankruptcy should be put aside as a very last resort, the mortgage company will have to prove their debt, I would love to be in the court room when the mortgage company hand the judge a piece of paper which has been crossed out and modified by the client especially the client being an undischarged bankrupt prior to signing, I am most interested in this post and look forward to the poster getting some legal advice to share the outcome with us all, my money is on her winning, I hope so |
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Jane.1
Starting Member
2 Posts |
Posted - 18 August 2010 : 09:47:39
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Thanks for the advice. On hindsight I wished I hadn't signed the form but I was being harrassed by the notorious Northern Rock, and was acting on advice given. I have queried it again with the OR and asked them to clarify what they have said in writing...they seem unwilling to do this though and the person I was speaking to has just said they only started recently so will need to speak with their manager. I will be seeking legal advice on my situation although having to go through another stressful process is already getting me down. Bankruptcy came as a relief and although I am struggling with the repayment plan, at least I thought there was an end to it! Unfortunately the entire process feels complex and I hope that something is done to better support people who are going through a terrible time really. I also wish I had found this forum at the time as I am really appreciating your comments. I will keep you updated!
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charlie44
Junior Member
231 Posts |
Posted - 18 August 2010 : 14:56:34
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| Hopefully things will go in your favour, at least I hope they do. |
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shortfall was not part of the BR ?
