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69076H
Junior Member
183 Posts |
 Posted - 10 February 2009 : 14:00:21
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| When I fill out the br forms do I have to list all the creditors I owe to or can I leave it blank and it will be done by the court. Is it also worth my while to keep paying my mortgage as I'm going to loose the house anyway or should I hand back the keys so to speak to the bank. This seems to get more daunting by the day it just seems to keep going on and on without an end. |
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Melanie.n
forum expert
United Kingdom
1282 Posts |
Posted - 10 February 2009 : 14:52:55
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All the forms have to be completed by you priorto attending the Court at your alloted appointment - failure to complete the forms completely or correctly will result in the appointment being cancelled - Court staff do not have the responsibility nor time to assist you. All your creditors need to be completed including names addresses, account numbers/references and amounts outstanding. If you have made the decision to hand back the keys you should stop paying the mortgage - they will only accept the keys back/or start repossession proceedings if you are 3 months in arrears. Clients are usually advised to stop payingmortgage to get together the rent and deposit for alternative accomodation. If you wish to formally hand the keys back to your mortgage company you need to contact them to obtain a copy of the relevant forms which will enable you to do this.
Melanie Nicholas
28 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
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movin on
Average Member
United Kingdom
946 Posts |
Posted - 10 February 2009 : 16:59:32
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Melanie
Hope you dont mind me mentioning this, but everytime a member has handed keys back in previous posts they have always been advised never to sign anything the mortgage company send them, as apparently this would make them liable for shortfall even after going BR. Most people have been advised to send keys back with an enclosing letter by recorded delivery, so they know the mortgage company have received the correspondance.
Hindsight is a wonderful thing
Jenny
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Melanie.n
forum expert
United Kingdom
1282 Posts |
Posted - 10 February 2009 : 17:04:21
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Any shortfall from a property would be included in the bankruptcy ( a safeguard is the list the mortgage company for £1 on the unsecured page as well full details on the secured page - guaranteeing the shortfall in the bankruptcy - whatever the final figure) Without the correct form from the bank/bulding society they will usually not 'accept' baack the keys
Melanie Nicholas
28 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
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John
New Member
United Kingdom
73 Posts |
Posted - 10 February 2009 : 17:51:49
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Hi
you should take extra care when considering whether or not to sign a deed of acknowledegment.
Many lenders have taken to including clauses whereby you could be held legally liable for the shortfall even after bankruptcy.
Certainly, as Melanie has said, you should include an entry in the unsecured section of your SoA for the possible future shortfall.
But to be doubley sure when returning the keys I would not sign anything. If that means the lender will not recognise your vacating the property then so be it. You can't be held liable for anything if you do not sign and if that doesn't meet with the lenders approval it won't cause you any problems and if you were then persued after bankruptcy you would just need to inform the OR and they will deal with it as long as the shortfall has been entered on your SoA.
timendi causa est nescire
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pix1
Average Member
689 Posts |
Posted - 10 February 2009 : 18:45:52
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you could STAY in the property WITHOUT paying the mortgage UNTIL they repossess it and evict you INSTEAD of handing in the keys.
as far as i know - having been down this road - you can only be held liable for mortgage shortfall if you keep paying the mortgage after going bankrupt and even then you may not be liable for any.
i hope you are wrong, john, that lenders can somehow insert clauses in a mortgage contract making someone liable for mortgae shortfall even if they go bankrupt. surely this would be illegal.
legum servi sumus ut liberi esse possimus |
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jurgenpie
Starting Member
United Kingdom
30 Posts |
Posted - 10 February 2009 : 19:25:25
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As in a previous post Northern Rock tried to sneak a clause in that I would be responsible for the shortfall when returning the keys which I deleted on advice from OR, so do check what you are signing.
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movin on
Average Member
United Kingdom
946 Posts |
Posted - 10 February 2009 : 20:16:04
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John meant that some mortgage companies are now asking you to sign their forms when giving up a property - and the advice is NEVER do that, even if they tell you that is the only way.
However as long as it is on the secured and un secured sections of your form then yes, it will be covered.
Hindsight is a wonderful thing
Jenny
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list of creditors on br forms ?
