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I've been doing a lot of researching the web and not a lot of sleeping over the past few days!!!!!!!!!

I have just rung Northern Rock and asked about Voluntary Possession (handing the house back) I asked about the 2nd charge (Picture) and whats the situation with that? and they said that if they take possession of the house back, then effectively Picture have no claim on the security anymore and so in effect the loan becomes UNSECURE as we no longer have any property to secure it on! Is this correct? I am still waiting for the council to get back to me tho about getting on the waiting list so I will not do anything for a week and see if they get in touch. I have asked for the papers for Voluntary Possession to be sent to me tho so I can think about it,

if this is the case, then it does not matter about waiting for the house to sell before going bankrupt does it????

Hi Jane

Picture will still retain some security over the property, to the extent of the remaining equity after Northern Rock's mortgage, but will be unsecured for the balance.

You are correct in assuming that you do not need to wait until the house is sold before declaring bankruptcy.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

The only thing Picture will have Jane is first call on any monies from the house after Northern Rock have taken the full amount owed inc any arrears.

Picture will crystalise the amount due which will be unsecured and form part of your bankrupcy.

Picture will have a second charge on the property which will mean that they are only entitled to any money remaing after the first charge holder, Northern Rock has taken the money they are owed. If there is not enough money left after the house has been sold this money will become an unsecured debt to Accuma.

Best Regards
Oliver

Thomas Charles and Co Ltd.
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