Hi, Could you please tell me what will happen with regards to my house when we declare bankruptcy? I'm worried that because of the current market situation the bank will not be able to sell it for enough to cover the mortgage. We are currently one month in arrears, a situation that is only going to get worse. Will we still be liable for the shortfall amount and end up in the same situation plus the stigma of bankruptcy? Many Thanx Carla
I'll tell you our situation. Our house was in negative equity and we decided to hand back the keys to the mortgage company and move into rented accommodation. We did so and wrote on our SoA (bankruptcy petition forms) that there would be a possible shortfall in the mortgage and our secured loan. We wrote both mortgage and secured loan in BOTH secured and unsecured sections of the form, and this meant the shortfall was captured in our bankruptcy.
If your situation is similar, you'll be able to do the same.
We've all been where you are now, worrying about our debt and then having to face it. You've come to the right place. Everyone here is supportive and there are some very knowledgeable people who will be able to help you, so keep posting your questions and we'll be here for you!
liable for the shortfall amount ?
Posted - 24 September 2008 : 11:38:05
