Mortgage default bankruptcy?

Legal questions answered by Cyprus property lawyer Louise Zambartas

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Mortgage default bankruptcy?

Post by padmo » 28 Mar 2011 14:14

Unfortunately bought 2 properties in 2006 with a certain agent XYZ and a certain well known Paphos lawyer.
Couldn't sell, couldn't pay, couldn't afford legal action so in a stalemate position. I have heard one of the banks is pursuing debtors in the UK through debt collectors. My position is that 1. I own no property ( not even a car), have no dependents and don't have a job in the UK. I would be happy to file for bankruptcy but I understand the properties need to be repossessed and sold prior to the bank suing me for any shortfall. Is this correct? Also would it be possible to file for bankruptcy in Cyprus although I don't lve there. Any advice would be appreciated.

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Re: Mortgage default bankruptcy?

Post by Pantheman » 29 Mar 2011 16:23

You would be better placed to get advice from the CAB in the UK on how to handle this.

They way I see it, if you have nothing for them to get, I would suspect (and is only my opinion), that they will not even try.

Good luck


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Re: Mortgage default bankruptcy?

Post by padmo » 31 Mar 2011 12:34

Yes one would think so but I'm hoping not to be in this position indefinitely. Unless there is some closure I have no motivation to get back on my feet, as if I do accumulate any assets, the bank could come after them at a later date.

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Re: Mortgage default bankruptcy?

Post by maxxine » 27 Oct 2011 09:45

How long after bankruptcy can my credit be good enough to get an apartment or a loan for a home? My wife and I make enough money to afford an apartment or a modest house. However, both of our credit records are poor. So we were told to file bankruptcy. We just need to know how long we will have to wait to get an apartment, since they ALL require credit reports.
Last edited by maxxine on 30 Oct 2011 09:53, edited 1 time in total.

Nigel Howarth
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Re: Mortgage default bankruptcy?

Post by Nigel Howarth » 27 Oct 2011 11:04

Dear maxxine

Welcome to the forum. Louise rarely visits these days unfortunately.

Making yourself bankrupt is a big step and one that you should not take without understanding the full implications. It can have consequences on your business and employment as well as your assets such as your house.

If you are considering making yourself bankrupt, I urge you to speak with a lawyer who specialises in bankruptcy a.s.a.p. They will able to explain the process and give you advice on your situation.

Financial institutions will check your credit reports and it may take many years (10, possibly more) until you are considered a safe bet.

May I ask who 'told' you to file for bankruptcy?


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Re: Mortgage default bankruptcy?

Post by JaneDoe » 24 Jan 2012 07:32

Who told you that bankruptcy affects only your property in Cyprus? Please read the law (Cap.5) before taking such decisions.

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