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Buachaill
Buachaill, Barrister
Category: UK Bankruptcy Law
Satisfied Customers: 10176
Experience:  Barrister 17 years experience
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my husband and myself are bankrupt i no longer work and we

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my husband and myself are bankrupt i no longer work and we are seperated, we can no longer aford to pay the mortgage and the value of the house is probably less than we owe on the mortgage. If the mortgage company sell the house at a loss will they be able to chase us for the difference even though we are bankrupt

Buachaill :

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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Customer:

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

Buachaill :

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.

Buachaill :

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Customer:

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

Buachaill :

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.

Buachaill :

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