UK Bankruptcy Law
UK Bankruptcy Law Questions Answered by Verified Experts
1. The debt owing on the mortgage becomes a debt in the bankruptcy, so if the mortgage company sell the house at a loss, the outstanding amount then becomes a debt in your bankruptcy and this is written off during your bankruptcy. It is in your interest that the bank realises its security on the property if there is equity in the house. This effectively crystallises the amount owing during your bankruptcy and this means you get a discharge from this debt in your bankruptcy.
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my husbands bankruptcy happened may 2012 so is still current but mine happened august 2011 does that mean that i am out of my bankruptcy and if so can they still chase me
2. The bankruptcy period can be up to two years. So it is in your interest that the situation in relation to the house is sorted out. It is after 2 years that that the trustee must re-convey to you any interest in the house which is left over from the bankruptcy. So until then, the issue of the house is still live.
so does that mean that santander cannot chase myself or my husband for for any short fall in the sale of the house for up to 2 years from when bankrupcy started, and they will not be able to chase us after 2 years
3. Santander need to sell the property and crystallise the loss for this to happen. This is why I say it is in your interest that the house gets sold and the loss crystallised before the two year period is up. Otherwise you will come out the other end of the bankruptcy without this debt written off.