Priority/non-priority loan

lostinthefog_2

It is likely that our house will be re-possessed in a few weeks from now. There is not much equity in the house and if it goes to auction, it is unlikely to realise the amount needed to pay off the mortgage. That means that we will still have an outstanding amount to pay off. However, I have been told by someone who claims knowledge of this area, that once the house is sold, the outstanding amount is no longer a "priority" debt and is classed as "non-priority". This means that we can offer to pay the mortgage holder £1 a month in perpetuity because we simply have no income beyond our pensions because my business has sunk in the recession.

Does anyone know if this is true ? I cannot believe NRAM, the relevant branch of Northern Rock, will simply accept this. Would they not set bailiffs or a Debt Recovery organisation on us ? As said, we simply don't have any income except for our pensions so whatever demands are made, we can't pay. The car is held together with sticky tape, the TV doesn't work 100% properly (no, I'm not looking for sympathy, just reporting the facts) so I don't know what they would impound even if bailiffs came into the house.

Any knowledge from someone who knows would be appreciated. Thank you for any help you can offer.

CLAPTON

there is no legal definition of priority or non-priority debt; it's just a matter of common sense

priority debts are ones like council tax (can be imprisoned for non payment), gas. electricity (can be cut off or put on prepay meter), mortgage (can lose the house if you don't pay), car Hp (as you lose the car) etc

whereas non priority debts are CC, unsecured loans etc. You can be taken to court and get a CCJ, bailiffs etc

once the house has be sold then non payment of the mortgage is just like any other debt.

If you have no money to pay then what can they actually do?

best to post on the debt free wannabe board (lots of information and help there) and contact one of the free debt help agancies (CCCS, CAB, Payplan)