Hi RBSB.

I think we're edging outside of the area of expertise of our experts here.

These are questions relating to your legal standing in connection to the property and your contract with the mortgage lender I think?

Best to run these questions by legal adviser with property experience if you can.

Thanks, I can do that, I just wanted to check if the experts knew of the bankruptcy related repossession of property and any comment on the processes of 'notification' to the lender, as in, was the lender notified as a matter of course in December 2012 when we entered sequestration?

Because we are discharged, it's not actually reliable information the lender is acting on as there are no bankruptcy proceedings, I wondered if the experts could comment on that?

No problem RBSB.

We can leave that open to them if they feel able to comment.

Thanks -and of course, if anyone else has had similar circumstances / same lender etc I'd be grateful for any stories you're happy to share.

All creditors, including mortgage-holders and other secured lenders, should be contacted at the start of any bankruptcy proceedings.

In any formal insolvency procedure, a secured lender does have the right to call up a security and seek to repossess and sell the property in question if they wish. However, in the vast majority of cases, this does not happen as long as the mortgage/secured loan is being repaid in line with the terms originally agreed.

It is strange that they have waited until now to take this action, but I don't think that there is any reason why they cannot seek to do it if they wish. Essentially the contract you signed at the start of the mortgage is broken by virtue of the bankruptcy. I think it would only be binding if you remortgaged at some point after the date of sequestration.

I agree with Trust Deed Assistant though, you should really look to get specialist legal advice on this matter.