Mortgage debt post bankruptcy (discharged)

Faceit

Hi all, I'll be very brief as I have a tendency to waffle on. In any case I appreciate all advice.

Right, I went bankrupt approximately 3 years ago and was standard discharged 2 years ago. I've just built up the courage to look at rebuilding credit and my current report is showing two debts still outstanding which are defaulting every month......

The two debts were joint with my ex partner, one for a loan and the other for a mortgage shortfall post repossession (happened during my bankruptcy period). My x hasn't gone bankrupt but isn't paying the debt but is planning on declaring bankruptcy.

I've asked for them both to come off and the mortgage company are refusing on the basis it's technically still open but they can't come to me for it so they are literally keeping it open to stop me getting any credit (this is the ONLy reason I can see..) - this can't be right surely? It's just defaulting every month.

I hate having to deal with all this again, but for me to move forward I need to face it head on. I've made mistakes, I've learnt from them!

I've read over some posts which look encouraging but just wanted some advice specific to this.. Thanks all.

Woody76

Hi Faceit

Didnt want to read and run Im sure someone will be along soon to advise properly. I think it is because its a joint debt then your partner will have become liable (this is what we were advised and why both me and my husband went bankrupt) so because your husband isnt paying it means it will still be defaulting. Unsure why they havnet chased your partner or why they cant remove off your credit file though. Sorry couldnt be much help

Woody xx

fermi

It will be removed 6 years from the original default, whether it's marked as settled or not.

And with the bankruptcy as a enormous black mark on your record still, at present it's not going to be having much effect.

However, you can complain to try and get your credit report marked settled.

How far you get with that will be interesting. The ICO has given people mixed messages about this in the past. Telling some people that technically the default can be left unsettled while the the account is unsettled due to a joint signatory still being liable. While with other people they have managed to get their credit reports amended as per the normal rules. Very hit and miss.

Here is an analogous case involving a DRO (same principle though): https://forums.moneysavingexpert.com/discussion/3641267

Complain and don't take "no" for an answer. When you complain tell them that you want a final response from them and that you are prepared to take the complaint on to the FOS and ICO.

Faceit

Guys thanks so much for replying. That's brilliant advice and input from both.

Fermi your right, taking no for an answer just doesn't cut it... Ill reply to their no... I'm also wondering if I have to do this with each credit company (experian, noodle etc...) or just fight throuqgh one?

fermi

You need to write direct to the company laying out the dispute and saying that you require a "final response" from them.

On top of that you can register the dispute through Experian. Equifax & Callcredit. You don't need to, but on the principle that if they get the complaint from more than one direction at once then they'll find it harder to ignore, it can often help. All 3 if you like, but the most important thing is the formal direct written complaint.

melonieisaacs

Hi,
Myself & my husband are having the same issue with our credit file as only some of our creditors from the bankruptcy are showing our debts as 'satisfied' and our secured loan lender (although this is now classed as an unsecured debt following bankruptcy) are refusing to update the file as 'satisfied'. We are aware that the DEFAULT will remain for 6 years.

I have recently submitted a complaint to the ICO so will keep you updated as all of my direct requests to the company have gone unanswered.

For many of us BR is the only option following unemployment or major change in personal circumstances and it seems that creditors see this as their only way of ensuring that no lender will give us a chance on a new mortgage product.

I would love to know if anyone knows of a lender that would offer a mortgage product to a discharged BR before the 6 year period but who would also look at circs involving voluntary reposession, ie; we handed the keys back knowing our circs would not improve and so as not to build up the debt further?

I hope that it works out for you.

Equally Frustrated Member!

Buildit

Hi all - I'm "Faceit" but for some reason can't reset my password on that account... nevertheless new account

Just wanted some further advice really, I've contacted the Mortgage company who are still saying I owe them and the ONLY correspondance I've had back is to say "someone will be in touch" (along those lines)... this was almost two weeks ago - I've chased and had nothing back... any ideas?

Buildit

Hi Guys, anyone have any further advice on the above? would be much appreciated.

Thanks for taking the time to look/reply

fermi

Well, you don't "owe them". Your liability for the debt was formally discharged by your bankruptcy, whether they like it or not.

If you want to argue then make that point and re-iterate the previous points.

Have 8 weeks passed since your initial complaint? If so, you could complain via the FOS now and tell the company you are about to take that step.

Plus you could also start a parallel complaint via the ICO.

So perhaps write email or whatever, and give them a final chance to correct the info, stating that if they do not you will progress your complaints to the FOS and ICO?

fermi

http://www.financial-ombudsman.org.uk/consumer/complaints.htm

http://www.ico.gov.uk/complaints.aspx

Buildit

Fermi your an absolute star! ... at the moment all I've done is sent them an e-mail (although fairly informal), I chased it up 4 days ago and received another "someone will be in touch" reply - i'm now going to send the letter you provided in the forum post (can't post the link but it's the Credit Reference File Cleanup thread) - There are actually two companies, one being the mortgage company (One Account) and the other credit card company (Lloyds TSB). THe only problem I have is I don't have the account numbers anymore although they should be able to find it from name, address etc... i assume