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Debt question
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MrJames1980
Posts: 14 Forumite
About 7 years ago I and my partner got into financial difficulties which resulted in our home being repossessed. We've since gone our separate ways.
Straight away she declared bankruptcy, if I had any choice I didn't want to take that route. So I worked hard at paying off my debts, the only one I couldn't pay was the shortfall on the mortgage. So rightly or wrongly, I ignored it.
For the first few years the bank who with which we had the mortgage wrote to me occasionally saying I still owed them x amount of money, but it was never consistent. (And they never started legal proceedings, although they often threatened it) Sometimes they would say I owe then £8k, other times £22k and even as much as £84k.
Recently I paid to see my credit history, and it was a lot better than I expected. The debt with the mortgage broker was settled in 2007.
But today I get another letter from this bank, informing me I need to pay £22k, that they understand not everyone can pay the lump sum so to set up regular direct debits of £500 per month from my account.
So, my question is for anyone familiar with UK monetary laws, after a debt has been settled does the lender still have the legal right to chase up the debt?
And I can't afford £500, at the moment I probably have less than £150 to myself at the end of a month.
Straight away she declared bankruptcy, if I had any choice I didn't want to take that route. So I worked hard at paying off my debts, the only one I couldn't pay was the shortfall on the mortgage. So rightly or wrongly, I ignored it.
For the first few years the bank who with which we had the mortgage wrote to me occasionally saying I still owed them x amount of money, but it was never consistent. (And they never started legal proceedings, although they often threatened it) Sometimes they would say I owe then £8k, other times £22k and even as much as £84k.
Recently I paid to see my credit history, and it was a lot better than I expected. The debt with the mortgage broker was settled in 2007.
But today I get another letter from this bank, informing me I need to pay £22k, that they understand not everyone can pay the lump sum so to set up regular direct debits of £500 per month from my account.
So, my question is for anyone familiar with UK monetary laws, after a debt has been settled does the lender still have the legal right to chase up the debt?
And I can't afford £500, at the moment I probably have less than £150 to myself at the end of a month.
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