Paying back any shortfall to secured lender??

moofant

Hi all,
Have been wondering what happens next with the vol repossesion,i went bankrupt in may and owed the mortgage co £147,000 but with also a few thousand pound interest added for not being able to pay,also a secured loan for £20,000 this is in mine and my wife's name the mortgage was just in my name, the house was valued at £170,000 in july 2007 i have no idea what its value is currently.
As im the only one that went bankrupt, if there's a shortfall in paying back the secured loan the s/l co have said they will persue my wife for the shortfall i assume they are in the right in doin this, i told them my wife doesnt earn/work she is a stay at home mum and would consider going bankrupt to stop them persuing her, they said they would rather set up a repayment programme for the remainder i told them it could take years to pay thousands back if she could only afford £10 per month, they seemed happy with doing that tho..
Have you guys any thoughts on this matter that could poss give us a look at what may happen?
thanx mick n charli

deedee_3

Hi,

The secured loan company is right the debt now falls to your wife as it was a joint loan. The only thing you can do is as you have said set up a repayment plan or go BR.

Why don't you give one of the debt charities a ring and see what they have to say about it.

moofant

Hi
thanx for that i think i will give cccs a call and get there opinions..

Richard_S

Hi moofant,

I wouldn't offer to pay them anything. There's nothing they can do if your wife isn't working and assuming she doesn't have any other assets. They could get really nasty and go for a CCJ against her, which could give them the right to seize assets that belong only to her.

That's a worst case scenario though, and the more likely outcome is that they'll just write the debt off once the house is sold.

Richard

moofant

Hi
I suppose thats another option we cud look into, she hasnt got any assets at all but doesnt want a ccj against her name either, i think we will probably end up sorting a payment plan with them for sumthin silly like £5 a month they told me it wud prob run for approx 3 yrs then at the end of the repayment term the remainder if any will be wiped clear..

deedee_3

moofant wrote: »

Hi
I suppose thats another option we cud look into, she hasnt got any assets at all but doesnt want a ccj against her name either, i think we will probably end up sorting a payment plan with them for sumthin silly like £5 a month they told me it wud prob run for approx 3 yrs then at the end of the repayment term the remainder if any will be wiped clear..

And you believe them :eek:. Why would a financial institution be so altruistic? More than likely they will pass it to a debt collection agency.

moofant

hi dee,
I kno where ur coming from by saying believing them, they just sounded very convincing on the fone when they were discussing things that would happen in the likely event of there being a shortfall, i told them that my wife was thinking about going bankrupt too and that kinda put the wind up them lol as they wudnt get anything then, but he just said they wud rather have the £500 paying towards the shortfall than my wife screwing up her credit rating...
At that point i just mentioned that her credit rating doesnt bother her as she is totally against credit. Ill just have to sit and wait now untill the house sells and see wot happens. Could they still come back to me too for the shortfall if the house doesnt sell untill the point i am released from bankruptcy i thought i would become there target again then i get released in april 09

Entry_Leveller

moofant wrote: »

hi dee,
I kno where ur coming from by saying believing them, they just sounded very convincing on the fone when they were discussing things that would happen in the likely event of there being a shortfall, i told them that my wife was thinking about going bankrupt too and that kinda put the wind up them lol as they wudnt get anything then, but he just said they wud rather have the £500 paying towards the shortfall than my wife screwing up her credit rating...
At that point i just mentioned that her credit rating doesnt bother her as she is totally against credit. Ill just have to sit and wait now untill the house sells and see wot happens. Could they still come back to me too for the shortfall if the house doesnt sell untill the point i am released from bankruptcy i thought i would become there target again then i get released in april 09

Anyone have any ideas about this question of Moofant's? I'm wondering the same thing as I'm in a similar position. EL

fiveyearplan

No they cannot come back to you for the shortfall. Just curious - did you try to sell the house yourself before you went BR?

deedee_3

Once you have been declared bankrupt they can't come to you for any shortfall.even if it doesn't sell until after you have been discharged.

Also if several years down the line a debt comes out of the woodwork from BEFORE you were made made bankrupt you can tell them where to go