Voluntary Repossession

CrystalIzzy

Thanks Fliss M, I think you are right about not putting myself in that position unless I have to. IF I ignore letters, will I get in trouble?

Trollfever

Just to add that Statute of Limitations for Land and Property debt in Scotland is 20 years.

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Fliss_M

CrystalIzzy wrote: »

Thanks Fliss M, I think you are right about not putting myself in that position unless I have to. IF I ignore letters, will I get in trouble?

Well my thinking is whats worse then bankrupcy? 1st they will need you to acknoledge the debt, a letter saying you cant afford it does that.

Were it me in your situation, I would ignore them till the court order came in. My thinking being, you would need to go to court to declare bankrupcy, so a court order wouldnt impant anything compared to the bankrupcy.

With my step dad, it was 6 years ignored and they couldnt take him to court.

I guess your answer is in your long term plans. If you dont plan to EVER have a mortgage again, nothing lost by chancing your arm. If you think in 10-20 years you will, theres an argument the quicker you declare the less time there is to wait till your credit record is clear. And the quickest way to declare is to acknoledge the debt.

Another thought. With the debts you do have, would you be better or worse off declaring bankrupcy? Unless you need what credit score you have it could work out better for you money wise.

Fliss_M

I Will Add I Dont Know How Bankrupcy Works So I Could Be Completely Wrong!!!

CrystalIzzy

My current debt and situation doesn't warrant bankruptcy. This new one will if they can find me. I just hope with the major rise in repossessions the banks are too busy to deal with this for a while...fingers crossed.

silvercar

If it is definitely going to make you bankrupt then there is an arguement for acknowledging the debt and going bankrupt NOW rather than waiting. If you did go bankrupt now, in 6 years time your bankruptcy would fall off your credit record and you could start with a clean slate. If you wait, that 6 years of purgery will come in the future.

As to whether you need to go bankrupt, if you can manage your debts then it is not necessary. The lender, when they catch up with you, will want ( or try to enforce) a repayment plan that you can stick to. They won't actually make you bankrupt if you have no assets that you can give them. the danger comes when you buy a new place and then the old lender wants a share of the equity.

lucu2005

Working in debt recovery, I can shed some light on this situation, obviously for a start off, the bank cant recover from your ex-partner because of him being bankrupt. Therefore, you become liable for the whole shortfall. Bankrupty is not an easy option and in the future, could stop you from obtaining credit.

6 years limitation - this means if the bank contacts you within 6 years of the date of sale, then they have made contact with you. Sending a letter to a confirmed address is viewed as contact, the bank will take every step to contact you and come to some sort of agreement.

Statute barred, this mean the bank has 12 years from the last payment to the mortgage to take legal action. Every payment you made to the shortfall the bank has another 12 years to take legal action.

I think the best thing you can do is keep in touch with the bank, make them fully aware of your situation and try to come to some sort of agreement. Any payment is better than none to the bank and they will look more favourable on you.

Hope this helps

skint_chick

If the bank finds you and takes out a CCJ for the shortfall and costs etc you will not be liable to pay this if you go bankrupt but it wil never show on your credit file as settled and will not fall off your file after the 6years like the banrkuptcy. So you will find it very very tricky to get finance in the future with a CCJ still showing on your file.

You would be better posting this on the bankruptcy board - those guys have encyclopaedic knowledge of the workings of bankruptcy and just because you can pay your debts now doesn't mean that you shouldn't go bankrupt before you are taken to court by the bank. I would wait and if they find you then act quickly so personally I would make a decision about what you will do if they do catch up with you so you are prepared and not caught unaware.

Good luck

silvercar

The important thing is not to buy again without sorting this out. If you thought the problem had gone away and bought the lender wouold probably reappear and put a charging order on your new home!

ami1

One_Day_Rodney wrote: »

Fliss M wrote:



This is incorrect.


From the direct.gov website



You may find this very useful - lots of free and accurate information.

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

HTH

hi i have already had one property repossesed i was renting it out but because of credit crunch couldnt pay and tenants never paid i am having same problems now tenant not paying cant pay mortgage or secured loan they going to reposess going to have large debt what can i do can they go for the house i am living in myself or any of my assets