| Author |
 Topic  |
|
|
pix1
Average Member
689 Posts |
 Posted - 11 March 2009 : 13:14:22
|
Hello John,
Please tell me what you think this means;
33.154 Deeds of acknowledgement of debt – Solely owned property
A secured creditor may request a bankrupt to complete a deed of acknowledgement of debt when the sale of the property results in a shortfall. A secured creditor may request this transaction so that no dispute will arise as to the amount of the shortfall or so that proposals to repay the unsecured portion of the debt by instalments can be settled. However, the secured creditor is entitled to claim in the bankruptcy for the unsecured balance of its debt and it will be up to the trustee to deal with such a claim. If the bankrupt completes such a deed, a new debt might be created on which recovery action might be based at any time within the limitation limit. It is not for the official receiver to influence the bankrupt about how to proceed in this matter. The official receiver should consent to the completion of a deed of acknowledgement of debt and if he/she becomes aware that the bankrupt has been requested to provide such a deed, the official receiver should suggest that the bankrupt seeks his/her own legal advice.
This is from the Insolvency Service
http://www.insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter33/part6/part_6.htm
|
|
|
John
New Member
United Kingdom
73 Posts |
Posted - 11 March 2009 : 16:04:23
|
Hi pix 1
What it means is if you voluntarily surrender your property or have it repossessed and you sign a Deed of Acknowledgement the shortfall, as always, will become unsecured.
And more importantly you, by signing the deed, agree to enter into a a new arrangement whereby the lender will not only be able to claim a percentage of any estate realised by the OR but the balance of the shortfall will still be owed.
The OR is not permitted to influence you one way or the other as to advise the bankrupt not to sign would be seen by the lender as not conducting the affairs of the OR's office in a manner which fulfills the OR's duty - which is to do all that they can on behalf of the creditors.
NEVER EVER SIGN ONE OF THESE UNLESS YOU WANT TO REMAIN LIABLE FOR THE SHORTFALL AND PAY THE SHORTFALL SUM OVER A NUMBER OF YEARS.
John White
England Jackman & Spacey |
 |
|
|
Jane.l
Average Member
511 Posts |
Posted - 11 March 2009 : 17:13:53
|
| I think it is very sneaky of the mortgage company to ask a person to sign this, NR wanted me to sign one or they would not take the house back, I just said to them "well, you had better hurry up and repossess it then, cos there is no way I am signing anything", even though they were most insistent. |
|
|
|
pix1
Average Member
689 Posts |
Posted - 12 March 2009 : 11:22:50
|
John,
Thanks for that. We have not signed anything but please clarify: does it have to be a specific form you sign or could they argue that simply exchanging letters talking about mortgage balances or shortfalls is the same thing?
Jane,
Thank god you did not sign anything. did you already know about this deed of acknowledgement thing or did you instinctively refuse?
What worries me is that a lot of people might have been duped in this way by actually signing when they hand back their keys. The only advantage of handing back the keys, after all, is if you are not going bankrupt and want to avoid a CCJ. What the mortgage company will not highlight, of course, is that even if there is no CCJ you will go on a possession registers for 6 years! |
|
|
|
Jane.l
Average Member
511 Posts |
Posted - 12 March 2009 : 11:27:51
|
| This was a "hot" topic for us as when we first approached CAB about our debts, the advisor told us that we had to wait until the house had been repossessed and then sold before we could go bankrupt as the mortgage company could still chase for the shortfall debt if we went bankrupt too early. This delayed our bankruptcy for 7 months as we dithered about seeking more advice. I now know that it does not matter, and we did indeed go bankrupt before the house sold, otherwise we would still be waiting.......haha |
|
|
|
pix1
Average Member
689 Posts |
Posted - 12 March 2009 : 16:19:39
|
| Yes, the CAB tend to be well meaning but really only for people who don't know how to find out for themselves or can't be bothered to. Same here. We would have been waiting still as our house has not sold! Not even had an offer on it. |
|
|
|
jurgenpie
Starting Member
United Kingdom
30 Posts |
Posted - 12 March 2009 : 19:48:23
|
NR did the same to me, sent me the form to sign and to enclose the keys with as I was voluntary reposessing. They put a clause on the form saying I would be liable for any shortfall which I duly deleted.
 |
|
|
|
kate-m
Starting Member
8 Posts |
Posted - 14 March 2009 : 23:58:24
|
Hiya everyone who got back to me. Thank you so much for your input. It has been really helpful.
I've got in touch with the court and have asked them to send me the bankruptcy forms which they have done so. yee gods, its a bit of a challenge! We also have to find a way of affording to go bankrupt. I've filled in a form for the charis trust so wish us luck please.
very reassuring to be told that the shortfall will be included in the bankruptcy petition.
Pix1, we were sent a few forms to sign and send back but i was so traumatised with the whole procedure that i didn't sign anything. thank goodness ay. Not too fussed about credit in the future, positive I don't want to get into debt again.
will keep you all posted xx
|
|
|
| |
Topic |
|
kate-m's recent post - mortgage shortfall FAO John
