Mortgage Debt - Liable for How Long?

Blue_Max

I have heard that under the English Law, a debt is payable only if it is under six years. Is it any different with mortgage debts?

mrs_tooti-frooti

I don't know the ins and outs of all this but exactly the same happened to me.

After breaking up in 1996 with my ex, I moved out of the house and the debts (cc, car loan etc) were split between us - I would pay all the debts, he would pay the mortgage and house bills as he was keeping the house.

The next thing I knew he had stopped paying the mortgage and done a runner. The house was then repossessed.

In 2005 I was chased by a debt recovery agency for the whole arrears. In the end they agreed to accept £6000 in full settlement of a £11,000+ amount. I paid this off with a credit card.

In 2006 I was contacted again by another debt agency - the first one had 'sold out' to another company and was again chasing the debt. I had one hell of a time proving that I have paid the debt - even though I had all the paperwork and correspondence.

I still seem to have some mark against me even all these years later. I have no credit in my name now (or have done since 1996). Its all in my husbands name now!!!

I'm sorry for waffling on but I just wanted to let you know what happened to me.

Regards

GeorgeUK

For debts on property, i'm afraid it is not 6 years but 12 in England. (20 in Scotland)

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=11_mortgage_shortfalls

When was the last time you made a payment towards the debt or acknowledged you owed the debt in writing?

Blue_Max

Last payment I made was in March 1998.
I have not ever acknowledged that I owed the debt in writing or otherwise.

Thanks for the link.

GeorgeUK wrote: »

For debts on property, i'm afraid it is not 6 years but 12 in England. (20 in Scotland)

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=11_mortgage_shortfalls

When was the last time you made a payment towards the debt or acknowledged you owed the debt in writing?

CLAPTON

the twelve years is from when you last acknowledged the debt i.e. in your case March 1998 however, there is a general agreement with most of the high street banks that they won't pursue after 6 years
contact nationaldebtline and seek their advice.

Blue_Max

Yes, that link to National Debtline page is very informative.

envelopes

I have a friend who back in 1991 left his wife whom then trashed their house and deserted. My friend was then made liable for the whole mortgage approx £29K owed. BUT because and I am pretty sure that it was longer than 6 years, he hadn't had any mail from the mortgage company/solicitors or anyone he was actually declared free of the debt.

I know for a fact that he never had to pay a penny back, but i remember him telling me that if they do not make any claim to the person with the debt in that time scale that they can not chase them for money. The house had been reposessed anyway so they would have got some money back for that although possibly less that the mortgage because all homes at that stage were in negative equity.

julie_walton

Hi I had the same problem. I was told it was 16 years that you can be liable for the debt. My old mortgage company contacted me a month before the 16 years was up. With interest they said I owed £48,000.I was in a terrible state (long story but debts all due to my ex husband) I went to the CAB who advised me to offer £200 a month or I would lose my present home. I couldn't afford this. I took a chance and offered the court £25 per month. Without any questions being asked they said they would accept £35 per month. Ok I've got to pay it for a heck of a long time, but I've kept my home, not gone bankrupt, and I can cope with £35 a month. I hope this helps.Though I have lost all faith in the CAB.