Spanish Mortgage Shortfall and UK Bankruptcy

My home in Spain has been repossessed, I have recently obtained a Nota Simple, which shows the bank now have 100% ownership.  From What I understand they have to take possession of it at 60% of auctionable value, which would leave a massive shortfall of about 200K.  Can I include this in a UK bankruptcy order?

Thoughts appreciated

Ok an answer you may not like.Declaring bankrupcty in the UK does not absolve you of your problems in Spain.AND OF COURSE LIKEWISE.You were obviously in a position to spend a lot of money on a large purchase and a large deposit. you  employed and paid accountants,solicitors etc. this is not the place to seek legal advice.............Maria who has helped many,many people is the person you should be contacting.

What I have said will appear harsh but come on , you must have known what you were doing

I wish life was perfect, yes at the time we had money a good job, but that changed and we lost everything, I hope you never have to go through anything similar, so yes it does sound harsh, all I am after is some advice from people who have suffered similar things inorder to safe guard my families future.  I have been told by lawyers in the UK that under EU law insolvency proceedings are recognised throughout the EU, and so if that debt were included in a UK bankruptcy order they can not persue me any further in the UK, but in Spain they could, and the reality of it is, I wont be going back.....

Any CONSTRUCTIVE comments, please say....

If it's still on-going the UK had a thing called the Debt Relief Programme, cheaper then full bankruptcy, no court appearance, obligations end quicker, worth checking out if its still about and you qualify.

Also I did hear...Could be wrong....That before you could go bankrupt in the UK you had to live here prior for 3 years. You post makes it sound you haven't, also best to check on this as well.

HI, I have been back in UK since 2011, so is my centre of main interest, have looked at Debt relif order, but is for debts under 15K. Would bankruptcy solve my issue?

A bankruptcy order in the UK will only resolve your liabilities in that country. That said banks in Spain have started pursuing debtors for their UK assets with a European charging order which is a relatively easy process. If you declare your debts in Spain to the UK bankrupycy court and request they be included then it should resolve that threat to your future in the UK but not in Spain. Debts in Spain remain for life until discharged.

You can then restart your life which is the actual purpose of a bankruptcy order.

Wait and see what happens with the property before making any decision! You may not need to do anything.

Thank you all

mickyfinn. Do you have experience in these matters as I really need some experienced thoughts?

Gonehome:

What was the value for auction contained on the mortgage?

How much did you borrow?

What is the pending mortgage? 

Sometimes the equation is not made with the correct values and therefore I would like to know if you are obntaining them correctly.

Kindest,

Maria

Hi maria

the outstanding mortgage is 455k and an auctionable value of 472 k

A couple of people here giving advice that a bankruptcy order in UK will not absolve them of debt in Spain because "Debts in Spain remain for life until discharged." and "Declaring bankrupcty in the UK does not absolve you of your problems in Spain".

What makes you say such things?

Surely it's a no brainer that a UK bankruptcy order will extinguish debts in other EU countries. Not much point in all those bust Irish and German businessmen going to UK a few years ago to take advantage of simple bankruptcy procedures  if it didn't help them back home.

The key principal is ‘jurisdiction’. Spanish bankruptcy laws are different to those in the UK. I doubt the poster would be declared insolvent in Spain given the detail he has posted.

It is possible to recover debt incurred in Spain from UK assets without bankruptcy proceedings. However it will depend on the levels of outstanding debt and assets he has in both countries. It also depends if the creditor believes it would be worthwhile or cost effective.

Bankruptcy is a very last resort process and not a free ride. There are consequences and creditors and the courts are often reluctant to take that route.

Gonehome:

Where did you get the auctionable value from?

From the mortgage contract

something not right here!!

other post says the house was bought at 750K with a 350K deposit = 400K mortgage

how come the mortgage after 11 years is now 455K

Auction valuations etc also diifer on each post!!!

Sorry my mathematics isn't great. Principle is what I am after. 

Ok

Principle is simple - sadly if you owe the bank then they will probably chase you for the debt, if you do not have the means to pay then they may give up but.....................

Probably best you go see a solicitor pretty quick and good luck

The principal is your mortgage contract in Spain requires you to discharge the original debt.

If you fail so to do then it follows the lender will by legal right pursue you for recovery of said shortfall by any legal means open to them.

Your accessible assets if there are any in UK or elsewhere will be at risk. That I’m afraid is the bottom line.

If you declare bankruptcy in the UK and it’s granted by the court the debt will still remain in Spain unless the court takes that into account. You need legal counsel, put all your cards on the table through a lawyer, accept the consequences and move on with your life. 

Like taxes and death there is no escape route.

Thank you all for your thoughts. 

Just to update. Have been declared bankrupt for a month now. Bank in spain have been dealt with. Best thing I ever did. Thanks all