Even where a homeowner hands back the keys the bank legally must get a possession order.
Derek, of course there are consequences. Well getting credit will be out of the question for many years, but most people in this situation have damaged credit ratings already so that is of very little concern to them. You can't be a director of a limited company or run for public office. Again of little consequence to the average Joe escaping the tyranny of the banks here.
As for cost of insurance, nonsense. Why would being bankrupt make your insurance dearer?
Not sure why it's nonsense but if someone has no other source of potential credit could it make them more likely to inflate a claim? I don't know the dark arts of insurance rating but I think it was a valid question to ask.
Being bankrupt is not a crime, inflating an insurance claim is. There is also a big jump between the two. First, they would have to have an insurable loss, and then they must decide to inflate it. Both have nothing to do with being bankrupt!
I would also wonder if there is evidence of this being more likely to be perpetrated by a bankrupt? I doubt it.
Unless the banks put the houses up for auction with no reserve price, they won't sell. I suppose they could be sold for a very small amount but then the bank would fail to get the best price. It is a difficult one.Nobody seems to be talking about this aspect of it though. Can the bank sell my home for some magic beans and a pint of plain and pursue me for 300k, or do we both just sit around twiddling our thumbs until the house is worth what we paid for it, which will be long after the bank manager and I will be cold in our graves?
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