Duff advice and bankruptcy...

northantsandy

When my ex-wife and I were sorting the terms of our divorce it was agreed I would buy her out of our home. My mortgage lender forced me to apply for a new mortgage and provided info to my solicitor which I believe was submitted to and accepted by the Land Registry and County Court saying this was the case.

The mortgage lender also gave me permission to let the property out as it was 70 miles away from my workplace. This permission in writing was good enough for another mortgage lender to provide me with a mortgage on a new home nearer work so I could start again.

I moved here on Jan 10, 2005 and on Jan 17, 2005 I was warned my job was at risk. As a salaried business adviser, I had thought about working for myself so took the step of forming a limited company; I was the sole director with all the shares. In March 2005 I was made redundant and my ltd company had never traded.

The mortgage co that gave me permission to rent my house out then told me they actually recinded the permission 10 days after giving it me and the letter must have got lost: I had to pay two mortgage payments. The house is 5 miles away from the Rover plant so the market was dead.

My first call dealing with my finances was to the various providors of my loans and credit cards. One told me that as a director of a company I wasn't able to claim off my insurance and this would be the same with everything. I thing they told me I wouldn't be able to sign on either.

I looked for work unsuccesfully and managed to break my hand in two places which was not able to be plastered. I did not trade within the ltd company.

In June I received a mortgage statement for the ex-marital property and it was the old mortgage in both names. I contacted my solicitor who told me that the mortgage company stated that the solicitor had not provided certain information they were never asked for and that the documentation was embargoed even though the solicitor was never told: I couldn't get another mortgage so even though the paperwork went through and were accepted by the land registry and county courts I was in exactly the same position I was when we were married and there was nothing I could do.

So having to pay for two morgages and thinking I couldn't claim on my insurance(s) or sign on you can guess what I did: loaded the ccards.

In the last month or so I realised my outgoings were approaching 4k per month and the cards were maxed out.

In a mad attempt to get money, I started doing some work with my ltd co and so saw an accountant. He told me that the advice about not claiming income support,etc or off the insurance was rubbish: if the company could not provide me with a sustainable income then I was allowed to claim!!!!

Even tho my five minutes of trading was a success, he adviced me to get a salaried job and seek the independent advice of a specialist in debts and insolvency.

My ex-marital house is on the market, dropped in price by nearly 18k from May, I still have my new one which is in negative equity and I have around 84k in unsecured debts (loans/ccards).

I've had interviews but in the back of my mind was I couldn't afford to take the jobs if offered as I wouldn't earn enough. I didn't get them, but wonder if my performance was affected by the debts. As soon as I was aware that I had to be salaried to even start sorting the debts out I got meself a corking role down in Luton. I start a new job next Monday (they are aware that two houses, redundancy and divorce have been my life this year). My adviser has told me to apply for bankruptcy as not even an IVA is liable.

I can't believe the treatment from (a) the mortgage company and (b) the duff call centre advice.

I know I am the common demoninator in this, but have I been right royally stitched up by two major financial institutions? What can I do apart from take the kicking and go bankrupt?

northantsandy

^o^bump^o^

Xbigman

My sympathies. You have been stuffed. At just the time in life (divorce) that you are suffering financial and emotional upheaval and you need a proffessional service from the financial institutions they have let you down.

Your overall problem is probably beyond what this board can advise you to sort out so I think you might get advice on lots of small points.

For my bit. Have you pointed out to the mortgage company that withdrew permission to rent that the ex marital home not being rented means you cannot pay the mortgage? If you had written permission to rent and based your plans on that, they have caused you to be 'financially disadvantaged' so phone them up and tell them so. Demand they re instate permission to rent or you will sue them (you have nothing to lose by having a go at them).

The solicitor that changed the status of the marital home with the land registry must have some paperwork authorising it. Get copies and let another solicitor take a look (don't tell him why you want copies). If they are valid the mortgage holder is obliged to let it through (scream financial disadvantage again). If not the solicitor that did it should be liable and you can complain to the law society (I think its them you complain to) and ask him what his companies complaints procedure is.

Last bit of advice; don't tell any of these solicitors that you are considering bankruptcy because their fees would be included and they won't be interested.
Regards



X

[Deleted User]

Regarding what you considered wrong advice from the financial institutions - you need to invoke their formal complaints procedure - including getting the tapes pulled of the calls.

Once this procedure has been exhausted - if you are not happy with the outcome, you then need to pass the matter to the Financial Ombudsman.

The F.O will not deal until you have been through the companies complaints procedure. In doing so - you should also decide what outcome you want from it - i.e compensation, being put back into the original position you were in (if possible?) or something else.

All of this takes time and unfortunately will not be a quick solution.

Meanwhile - I suggest you gather together all your paperwork on you current income and expenditure, visit your local Citizens Advice Bureau where they can deal with your debtors for you and take the heat off, whilst ensuring you getting all you are entitled to.

Forget bankrupcy until you have had proper debt counselling from CAB (or another non profit making advisor)

northantsandy

I am dealing with CCCS and Your Clear. As I was unemployed, CCCS told me they couldn't help me. Your Clear can - and starting a new job on Monday 12th has helped.

Working with a debt counsellor at Your Clear bankruptcy is my only option: it's too late and to be honest I don't think I can face going through complaints procedures whilst I'm supposed to be paying 4k a month out I don't have.

I went through the complaints procedure with the mortgage company earlier in the year and it was a complete waste of time.

Xbigman

I'd advise you to keep fighting but if you are already some way towards a bankruptcy decision and are taking profesional advice then you have done as much as you can. I wish you the best of luck.
Regards



X

northantsandy

The mortgage lender blamed my solicitor, my solictor blamed the mortgage lender.

The relevant bodies may end up blaming the other party too so I'd be no better off.

I've just found out about let-to-buy rather than buy-to-let: this may be a way to actually bag an IVA rather than full blown bakruptcy. Will keep y'all posted!