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Deed of Acknowledgement: reposession after bankruptcy

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  • Deed of Acknowledgement: reposession after bankruptcy

    For some people who go bankrupt, repossession is an inevitable part of the process. For those people who wish to voluntarily give up their property for repossession, be very aware that to do so a mortgage lender may require you to sign their paperwork, otherwise called a Deed of Acknowledgement.

    The Deed of Acknowledgement can take many guises, often found hidden in paperwork for 'handing back the keys' Do not sign ANY forms for voluntarily giving up your property after the date of your bankruptcy.

    Signing this after the date of the bankruptcy order would result in the bankrupt acknowledging and accepting liability for any shortfall or further money owed connected with the property... effectively creating a new debt.

    Not signing any such forms or paperwork would mean that any costs associated with the property would fall into the bankruptcy order as the mortgage agreement was signed before the bankruptcy order - a pre bankrupt debt covered by bankruptcy even if the house is sold after bankruptcy.



    So to reiterate: Do not sign any paperwork from a mortgage lender re: your property, after the date of bankruptcy
    Last edited by IF; 28 January 2013, 08:23.
    "If wishes were horses, beggars would ride"
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