Bankruptcy and offers

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rufus_t wrote: »

good luck to you with it all - and glad to see you can keep a sense of humour.

I'm just looking for a bit of help though and will take it where I can get it.

If it helps, I have seen credit reports and there was no code for "paid up but in a reduced kind of way".

I assume it would be classed as paid in full but all the defaults would stay on there.

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debt_doctor wrote: »

Hi,

You need to get some advice immediately. First thing is you say this debt is about 11 years old . Could it be 12 years old and possibly be statute barred ?

Perhaps more importantly, Lloyds tsb are members of the council of mortgage lenders, and therefore have agreed to not persue for any shortfall debt if they have not attempted to contact you at an address they can prove you lived at at the time of writing within 6 years of the house being sold.

This means that may not pass it to a DCA after the 6 year period either. I have been fighting just such a case for the last 7 months, and it looks like the financial ombudsman service are to rule that the amount cannot be persued.

Debt following mortgage possession

Here is some information on what happens after a property has been taken into possession. If you are worried about losing your home see our consumer guide: Help if you are worried about your mortgage.

• What happens to your mortgage debt after your home is repossessed?
• What will the lender do if there is a shortfall?
• How long after the repossession can lenders seek the recovery of the debt?
• Does this time limit apply to every case?
• What do I do if I have a mortgage related complaint?

What happens to your mortgage debt after your home is repossessed?

After your lender takes your property into possession they have a legal duty to sell the property for the best price that can reasonably be obtained. The property will generally go on the market as soon as possible and your lender will get independent, expert advice on the price it should be sold for and the best method of sale.
If the sale of the property results in a surplus after all the money owed to the lender and any other secured lender has been repaid, then this surplus is returned you. Your lender should notify you of the surplus but if you cannot be contacted, the money will either be held by the court or your lender until you can be contacted.
But if the sale proceeds are not enough to pay off the money you owe to the lender, then there is a "shortfall debt" which you still owe your lender after possession.
Interest will usually continue to be charged on your mortgage loan until the property is sold and any shortfall is repaid. There will also be other costs charged to your mortgage account, including estate agents' costs in selling the property and legal costs.
What will the lender do if there is a shortfall debt?

If there is a shortfall lender will contact you as soon as possible after the sale of the property telling you that there is a shortfall debt. They will also let you know that the shortfall debt may be pursued by another company.
If interest is being charged on the shortfall debt, your lender will send you regular, written financial statements which will update you on how much you owe. It is important that you keep your lender informed of your new address after you leave the property so that you receive these statements.
The action that your lender takes will depend on the circumstances. A lender may or may not wish to seek repayment of the shortfall debt, but if they do they must notify you within six years.
How long after the repossession can lenders seek the recovery of the debt?

In England, Wales and Northern Ireland, a lender legally has 12 years to contact you to begin the process of seeking repayment of a shortfall debt; this period is usually 5 years in Scotland.

However, lenders are committed to fair and sympathetic treatment of people who have suffered repossession, and accept that individuals should not face long delays before being contacted to discuss repaying the shortfall. Most lenders will contact you fairly soon after possession to try to agree to a manageable arrangement for repaying all or some of the debt.

Lenders who are members of the Council of Mortgage Lenders voluntarily agreed from 11 February 2000 to begin all recovery action for a shortfall within six years of the sale of a repossessed property. If your property was taken into possession and sold more than six years ago, and you have not been contacted by your lender to recover any outstanding debt, you will not now be asked to pay the shortfall. In Scotland, lenders will begin recovery action within five years.

This does not apply if you were contacted prior to the 11th Feb 2000 or if you entered in to a repayment plan before that date.

DD

That is the nicest thing I have ever heard. thank you.

Thanks a lot.

I shall investigate this further tomorrow.

wonderful.

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OOOOOOPPPPSSS

Just had a thought, my original mortgage was with Cheltenham and Gloucester. Does this make a difference?

tigerfeet2006

Not sure, but get some advice off someone like National Debtline tomorrow.

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tigerfeet2006 wrote: »

Not sure, but get some advice off someone like National Debtline tomorrow.

Ok. Will do.

Ta

gizmo111

Is this a Statutory Demand or a Bankruptcy Petition they have sent you?
Has it come straight from Lloyds or via a debt collector?
Have you any assets?
You have made offers in the past couple of years so it is not stat barred.

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gizmo111 wrote: »

Is this a Statutory Demand or a Bankruptcy Petition they have sent you?
Has it come straight from Lloyds or via a debt collector?
Have you any assets?
You have made offers in the past couple of years so it is not stat barred.

It is a bankruptcy petition.

It is from Lloyds via their lawyers who have a Germanic sounding name.

I have no assets

It is not stat barred, I think.

gizmo111

So you have no house equity, cars or savings?

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gizmo111 wrote: »

So you have no house equity, cars or savings?

Nope.

They will get an xbox 360

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gizmo111 wrote: »

So you have no house equity, cars or savings?

As I told them. I am a worker who is a single parent living just beyond mimimum wage.

The house I bought in the first place should give an indication as to my station in life.