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[Uncannyscot]

Hi folks,

I am starting the process towards sequestration.
I have cancelled all payments to creditors; mortgage, loans etc

I am waiting for repossession proceedings to begin on my flat which brings me to my first questions, do I continue with the flats landlords insurance which I took out as the flat was let to a tenant? There is no longer a tenant in the property and there is no chance of it being let again. Should I cancel the landlords policy and take out another standard buildings and contents policy or just leave it? I am not and will not be staying in the property.

How long will it take for proceedings to start for repossession? I am currently in an arrangement with the mortgage lender (RBS) after a statutory demand was served, I thought at the time I would be able to meet this but problems with the maintenance of the property and tenant has destroyed this. No tenant = no rent, no rent = no mortgage payment.

Thanks for all your good advice and help thus far

[Geraldine]

Hi there Uncannyscot

I would say that you would be OK to cancel the landlord's insurance. After all you are no longer a landlord. I do not think it is worth taking out any further contents / buildings insurance as you are handing the ownership of the property back to the mortgage company. It then becomes their responsibility.

The best way to speed up the repossession process is for you to contact RBS directly and tell them that after consideration you are no longer able to pay the mortgage and you would like them to start the voluntary repossession process. It may take 6 - 12 months for RBS to actually sell the property and realise the shortfall and start to chase you for this. However in the mean time you do not need to delay your sequestration. You can start this straight away.

In terms of starting sequestration, you will need to go through a process called the "certificate for Sequestration". You should speak to a Money Advisor at your local CAB or Local Council to get this process started.

[Uncannyscot]

Thanks Geraldine,

Will contact RBS direct and inform them that I cannot continue paying.

Will cancel insurance.

I have an appointment with the local Money Advice Center on 13th August @ 9:00am so shall gather my accounts and income/expenditure details for then.

Thank you for your help and advice.

Apologies for being so brief as I am quickly posting this from work

Will be popping on and off as the day goes on.

[James Falla]

Hello Uncannyscot

Geraldine has given some good advice here. As you no longer have a tenant in the property I would agree that cancelling your landlord's insurance is the right thing to do. Speaking to RBS now about initiating the repossession process should also be something you do straight away. Glad you have an appointment with a money adviser on the 13th August. By that time the repossession should be underway. You will probably not know what the shortfall is at that time but this will not matter as it will still be a contingent debt within your bankruptcy. If you have questions in the mean time let us know otherwise please let us know how you get on on the 13th.