Advice on a tricky situation....

TheGardener

Hi
(Mr F Dorsetey is a strange one...)

If your relative does as you have said - intentionally BR's himself - then you will probably have the last laugh, deliberately taking on credit when you have no reasonable expectation of paying is going to earn him a BRO and I doubt he would get another mortgage for a very long time.
I might tend to agree that you do need serious professional advice and keep looking until you find someone you trust who has the right skills and knowledge to help you. I think I would also be tempted to move in - whether its uncomfortable or not.
Stepchange and National debtline are Free and very good - I would start with them.

alastairq

If I were the OP I'd settle for what the solicitor advises, paid professional advice is better than taking advice of unknown validity off an internet forum, surely?

Sadly...'paid professionals' often know little...or present misleading, information on the specific fields concerned....especially with regards to Bankruptcy!!

The Debt charities mentioned by GArdener above are better equipped to provide proper information....as are many who contribute to this forum.

''Trust me, I'm a Doctor'' doesn't work too well these days....

luvchocolate

I spent thousands of £ on so called legal advice on a very complex situation....it got me nowhere. I received all my information through stepchange, the Insolvency website and this forum.
Please do not be put off by new posters who insist you ignore everything you read on this forum.
We are here to give advice and support at this difficult time, if Mr Dorsetty you cannot do that I would suggest you leave these good people to do just that.

alastairq

To the OP...in what way was your Solicitor's advice 'not helpful?'

qwertybai

alastairq wrote: »

To the OP...in what way was your Solicitor's advice 'not helpful?'

Hi Alastair,

It wasn't necessarily that it wasn't helpful, I just don't know what is correct information and what isn't. For example when the small claims action was lodged against me by the family member at the end of last year the solicitor I was dealing informed me that mortgage payments can be pursued through small claims. A family member (with some minor law experience) said it couldn't as the agreement was with the bank, not with each other (as advised here) - CAB also said this - I was happy to defend myself irrespective of this anyway as I thought I was 100% in the right

I then changed solicitor and was running through options with him, for example I asked if writing to the bank / family member involved would serve to benefit me in any way, his response was "if you would like me to write a letter I will do so" - this happened on several subjects, he never recommended anything, I made suggestions and he suggested how he would facilitate those suggestions (and no doubt charge me plenty for them) - I just felt he was willing to do things for the sake of doing them irrespective of their value - so long as he was going to get paid for it.

The solicitor I spoke to yesterday and today has been without doubt the most helpful person (excluding here of course) to date. Basically she has advised I do an information collecting exercise, I've some info to get from the bank and she has advised I phone the local insolvency agency, see if he is on their radar yet, tell them of the situation and see what they advise. I've to phone her back tomorrow and going to come in and she is going to put a letter to him together. I will also ring StepChange and National Debt Line tomorrow (thanks for that)

nervousmother

During this meeting I learned that he had intentionally filled up his overdraft and was in the process of filling up his credit cards and any other credit he could get. The girlfriend who is now his wife has got a mortgage in her name only and his intentions were to stop paying the current mortgage, let the bank forclose on the property (it is in 50k negative equity) and then declare himself bankrupt, the intention of this in his mind is to leave all the debt on me. There have been discussions since, but this is the course of action he is sticking with, the last estimation of his debt is 20k and climbing.


Firstly if he has started a small claims I can't see him going bankrupt, secondly you mention his wife has another mortgage? I presume on another property? If so who lives in the other property?
Also even though the property is in her name, if he goes bankrupt the OR may state he has beneficial interest in the property.
My advice, move into the house you own 50% of!

longtermplanner

qwertybai wrote: »

I just don't know what is correct information and what isn't. For example when the small claims action was lodged against me by the family member at the end of last year the solicitor I was dealing informed me that mortgage payments can be pursued through small claims. A family member (with some minor law experience) said it couldn't as the agreement was with the bank, not with each other (as advised here) - CAB also said this - I was happy to defend myself irrespective of this anyway as I thought I was 100% in the right

Well this seems to be in the past, but FWIW, I think the solicitor was right.that the bank can't choose to pursue you for mortgage arrears because they already have security over your house, however if you have has a private agreement with someone else as to who will pay all or parts of the mortgage, then is potentially enforceable through the small claims court. Of course such cases often degenerate into an unprovable argument "he said" "oh no I didn't" etc , but that is practicalities and the likelihood of getting a judgement, not whether the claim is potentially litigatable.

I would beware advice from family members "with some minor law experience". they tend to think that the hammer that worked in their case will also work for you in a rather different situation. Better to get advice from somewhere like here, where at least bad advice has a good chance of being identified by others.

qwertybai

nervousmother wrote: »

Firstly if he has started a small claims I can't see him going bankrupt, secondly you mention his wife has another mortgage? I presume on another property? If so who lives in the other property?
Also even though the property is in her name, if he goes bankrupt the OR may state he has beneficial interest in the property.
My advice, move into the house you own 50% of!

Yes the mortgage is on another property that is allegedly going to be complete next month. Once they have that property that is time the time he is going to stop paying the mortgage on "our" property.

I do think you are correct and that moving into the property is probably the right thing to do, that however is probably going to suit him just fine if he gets his property next month as he will have no further use for the property.

Hypothetically - The solicitor has told me I have 21 days from him filing for bankruptcy (if he does and it is accepted of course) to be able to object to it and that would be an opportunity to have a discussion with the OR, is that correct?

silvercar

I don't see how you object to his bankruptcy. Ironically if he is bankrupt the OR won't allow him enough money to pay for the mortgage on a property he doesn't live in. So his bankruptcy is likely to mean the property is at risk of repossession, which does mean the negative equity falls to you. Every cloud.....if it is voluntary repossessed at least that severs ties with your ex. Usually the lender will come to a deal on repayment of the negative equity.

qwertybai

silvercar wrote: »

I don't see how you object to his bankruptcy. Ironically if he is bankrupt the OR won't allow him enough money to pay for the mortgage on a property he doesn't live in. So his bankruptcy is likely to mean the property is at risk of repossession, which does mean the negative equity falls to you. Every cloud.....if it is voluntary repossessed at least that severs ties with your ex. Usually the lender will come to a deal on repayment of the negative equity.

Sorry I meant it will give me an opportunity to make them aware of his actions (intentionally making himself bankrupt).

There is something wrong with the the whole thing if in his bankruptcy, while the bank will be listed as his creditor (I presume) he won't have to pay that while he will be allowed to pay his wife's debt on a house they have just moved into (they can't be in that bad of a financial situation if she has just been able to get a mortgage).

If it is voluntarily repossessed - the affect on my credit rating is still going to be the same as a non-voluntary repossession isn't it? ie no mortgage, credit of any sort for the foreseeable? How do they come to the terms of the agreement, would it be done on my affordability? For example If they see that I could have afforded to pay the mortgage are they going to say they want all their money?