This article explains what happens after your house is repossessed, including how it can impact you getting a mortgage and your credit ratings. After your house has been repossessed, you may still have a debt to pay regarding your mortgage (known as Shortfall debt). Craig, who now has a £30,000 debt and is homeless, said: "I have no choice but to go bankrupt." We had our house repossessed in Feb 1994 (for being a measly £1,000 in arrears). If you have a mortgage, loan or credit debt, you might have Payment Protection Insurance (PPI). A registered charity no.1016630 and SC046263. Contingent debt is a debt you are potentially liable for on the date of your bankruptcy but which has not yet crystalised (for example a potential mortgage or secured debt shortfall). But it’s especially frustrating if your debt is several years old. The point of a Charging Order is to secure the debt against our home, putting the lender very near the front of the queue for any money made from the sale of the property. But the house was repossessed earlier this year and sold at auction last week for £92,000. Check if your debt is covered by Payment Protection Insurance. In cases such as these, the debt will not become a Canadian debt-it is still an English debt and can be cleared by filing for bankruptcy from Canada in England. she had a 25000.00 lien against the house. We handle complaints from people who are unhappy that they’re being asked to pay more money – the “ shortfall ” – after their home has been repossessed and sold. payment on lien against house my mother transferred her home to me prior to her death. If you do, the insurance company might cover your debt repayments if you fall ill, become unemployed or have an accident. Mortgage lenders have … debt that is canceled, forgiven, or discharged for less than the full amount of the debt as “can-celed debt.” Sometimes a debt, or part of a debt, that you don't have to pay isn't considered canceled debt. i have paid $13000.00 in four years on that loan. Property Used as Collateral Can Be Repossessed . Whether you have medical debt, credit card debt or unpaid student loans, getting calls or letters from debt collection companies can be frustrating. People complain that: they ’ re confused about why they still owe money, given that their house has been sold; their house was sold for too little – so the shortfall is the mortgage company’s fault Sometimes a canceled debt may be exclu-ded from your income. The information you have been given by the Official Receiver is correct. A UK debt collector will normally pass the case to a local Canadian debt collection company and they will contact you to demand payment. 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