Secured Debt

Cissie1

Hi Guys

Well we are 2 weeks into our bankruptcy so still sorting things out. I have today received a letter from a debt collection agency chasing payment for arrears on a secured debt with Firstplus. Now I understand that a secured debt is not covered by bankruptcy but we are sending the keys to our home back to the mortgage company (northern rock) today so proceedings will start to reposses the house. We had arrears with the mortgage as well. I understand that once the repossesion happens the debt becomes unsecured and falls into the bankruptcy (both creditors were noted on our forms). My question id what can this company (firtsplus or the agency they have chasing us) do until the debt becomes unsecured? Should I ring the compnay and inform them on the bankruptcy?
Thanks for any help
Cissie
xx

fermi

Cissie1 wrote: »

My question id what can this company (firtsplus or the agency they have chasing us) do until the debt becomes unsecured?

Nothing whatsoever.

Apart from just try to be a nuisance, that is.

But practically, the only action they are entitled to take is to seek possession and sale of the property. Once that happens (to whomever) then the debt goes into the BR and they have no further way of taking action against you.

Cissie1

Thanks Fermi

I just rang the OR and he basically said the same thing. I also rang the company to inform them of the bankruptcy etc and the chap on the end of the line was less than polite I must say! He got quite shirty when I wouldn't give him my new address and phone number! He started having a go saying that until the property is sold I still have to pay and then when it is sold the shortfall will be down to me. I 'corrected' him by telling him the shortfall would fall into my bankruptcy he wasn't having none of that. He kept arguing that the house was mine until sold etc etc then he said 'can I quote that you are refusing to give me your new address?' I said no you cannot as you have been telling me for 20 mins the house is mine so all post will go there and be redirected to me. He didn't like the fact that I had an answer for him....tough! He is now going to ring the OR and speak to him. Dont really know why but I'll let him get in with it!
Sorry for the moan!

Cissie
xx

fermi

Cissie1 wrote: »

He started having a go saying that until the property is sold I still have to pay and then when it is sold the shortfall will be down to me. I 'corrected' him by telling him the shortfall would fall into my bankruptcy he wasn't having none of that. He kept arguing that the house was mine until sold etc etc then he said 'can I quote that you are refusing to give me your new address?' I said no you cannot as you have been telling me for 20 mins the house is mine so all post will go there and be redirected to me. He didn't like the fact that I had an answer for him....tough!

Well, he is talking out of his backside. :cool:

You can safely what idiots like this might claim. After all, it is their job to try and mislead you.

Cissie1

Thank you

You always manage to put my mid at rest x