I am 5 months post bankruptcy and have an empty property in negative equity. I have not continued to make payments on this property and have informed my mortgage company that I wish the house to be repossessed. I have informed them that I will not sign any paperwork making me liable for any shortfall after sale. To date I have received no paperwork or notification of repossession. Why are the mortgage company dragging their heels? Do I need to seek legal advice? I simply want the property off my hands.
I would suggest that you simply hand the keys back to the mortgage company. It may take a little while before the property is sold, but once it is any shortfall should be included in the bankruptcy. I suggest you discuss this with the Official Receiver dealing with your bankruptcy, as they will be dealing with the property.
This question has been answered by CAP UK, a leading debt charity offering hope and a solution to anyone in debt.
You could speak to the official receiver who handled your bankruptcy and ask them how this liability has been dealt with in the bankruptcy and you could contact Shelter if you require advice on handing back property http://www.shelter.org.uk/
This question was answered by Debt Advice Foundation, an independent UK debt advice charity. If you need further help, Debt Advice Foundation provides a free, confidential helpline and can advise you. Click here to find out more.