Bankruptcy and negative equity on Mortgage

[Nicky Bodmin]

Hi Guys,

 

Been reading about the Power of Attorney and bankruptcy. I have read that bankruptcy removes the POA on mortgage, can anyone tell me if the POA goes back after bankruptcy if house is kept.

If this is correct then no lender can repossess my property when the house is discharged.

 

 

Power of Attorney

 

https://www.gov.uk/government/publications/powers-of-attorney-and-registered-land/practice-guide-9-powers-of-attorney-and-registered-land

 

2.1 General powers under section 10 of the Powers of Attorney Act 1971

 

2. Types of power of attorney

2.1 General powers under section 10 of the Powers of Attorney Act 1971

The Powers of Attorney Act 1971 provides a short form of general power of attorney that can be used by a sole beneficial owner of land. It operates to give the attorney authority to do anything that the donor can lawfully do by an attorney. However, powers in that form dated before 1 March 2000 are never suitable for dealing with land of which the donor is a joint proprietor. And those dated after 29 February 2000 may only be used by a joint proprietor if the donor has a beneficial interest in the land. The death, bankruptcy or mental incapacity of the donor will automatically revoke the power. The donor may also revoke it at any time.

 

Terms & Conditions on my mortgage company

Section 17. Attorney

 

17.1.4to enforce any right or claim which you have over the property.

 

The Power of Attorney granted by the execution of the deed is therefore now “revoked”.