hi, my husband and myself went br in april 08

[sjw]

hi, my husband and myself went br in april 08 decharged dec 08. our house was repossed last month by building soc but had phone call to day we would be liable for any shortfalls however i was under the impression than any shortfalls would be covered under bankruptcy any advice would be appeciated.

[Adam Davies]

Hi
The shortfall should be captured by your banktruptcy
What did the OR say about your house at the meeting ?
Regards

[Adam Davies]

Hi
From the Insolency Services website

Question: If my house is sold sometime after the bankruptcy order is any shortfall on the mortgage still a debt in my bankruptcy?Answer: A debt which is secured by a mortgage or a charge on a property is still a provable bankruptcy debt. The mortgage loan company is "a secured creditor" which means they have rights over an asset, the
house, and can require the asset to be sold to pay their debt. These rights are not affected by the bankruptcy. On the making of a bankruptcy order the mortgage loan company could
make a claim in the proceedings but, unless it wished to give up the security, could only claim for any (estimated) shortfall.
If you continue to live in the property it is likely that you will continue to make payments to the mortgage loan company to avoid the property being re-possessed. When the property is eventually sold any
shortfall to the mortgage loan company is still a provable debt in the bankruptcy, even if you have been discharged, as you are released from the debt on discharge.

Your bankruptcy does not affect the obligations of any joint owner who has not been made bankrupt to repay the mortgage loan debt or any shortfall, as they are still liable for the whole of the debt.

After the date of the bankruptcy order the mortgage loan creditor may ask you to sign a "deed of acknowledgment" of the outstanding debt. If you have signed such a deed the mortgage loan creditor can take action against
you to recover any shortfall following the sale of the property.

Regards

[sjw]

thanks for your reply the or didnt really mention it as we were pay mortgage to a few months they did offer for us to but beneficial interest but we didnot. so from what you said all shortfalls will be covered within the bankruptcy is that correct.
thanks

[Adam Davies]

Hi
Yes, that is how I read it.
If you did not buy the BE then effectively the OR still has an interest in the property and the shortfall will certainly be covered by your bankruptcy.
David or Melanie will confirm
Regards

[sjw]

thanks for your reply, much appreciated.

[David Mond]

Spot on Andy.