Regrets.. 8 years on

tonym_uk

Hi,

My first post although long time lurker! I am in a complicated situation, bear with me...

I got a joint buy-to-let mortgage with a business partner (Jack) for a house in 2004. After fixed rate ended, we were advised to remortgage in my sole name for a better deal.

At the same time, another partner wanted to buy into this investment, so a solicitor drafted a Declaration of Trust (clearly defines that every partner is equally responsible for any and all outgoing costs of the house).

The tenants had left and as we struggled to find replacements so we put the house on the market - we spoke to the landlords to allow us to pay quarterly service charges on the sale of property. They agreed and so no invoices or statements were sent.

This was requested because the two partners stopped paying their contribution thus breach of contract but I had no money for legal help and CAB couldn't help. Also without our knowledge, one of the partners moved to USA.

In total, the partners owed me £15,000.

Unfortunately the sale fell through at the last minute - 3 times with 3 different buyers!

The landlords were taken over by a much larger company (DTZ) who then instructed a major law firm to take action against two of us - letters were addressed to both me and Jack. They didn't care much for that "gentleman agreement" with previous landlords.

Despite correspondence, and even trying to pay in instalments, or even paying 1/3 (my contribution), they still wanted the full bill paid (10K) or else so yet another solicitor was hired....

They mentioned that they would issue a CCJ if full payment is not made by the date specified in their letter.

I worked hard to get 5K so I can pay 50%... 2 days before the deadline, out of blue I was informed by my solicitor that the action would be against me only.

Conflict of interest - solicitor's colleague is a long-term friend of Jack! So Jack lied about finding his 50%.

So with the help of Legal Aid, I got another solicitor who advised me to terminate contract with this solicitor for conflict of interest reasons.

Just before CCJ was issued against me, I managed to find another buyer and they agreed to settle CCJ from the sale of property. 4 months later (buyer changed his solicitors midway for some reason) and for the 4th time, at the last minute, the sale fell through as the buyer decided to purchase an apartment instead.

My solicitor also informed me that the Declaration of Trust was very poorly written (only 2 sheets of paper) even though it cost £600 if I recall correctly.

Unbeknown to me, Jack declared himself bankrupt and emigrated to Dubai. I think I should have been one of the creditors.

Despite all this, I kept up the mortgage payments however due to huge stress and the pressure from DTZ and their expensive law firm (10K became something like 14-15K including fees!) and on the advice of my solicitor, I declared myself bankrupt in May 2006. I was discharged in October 2006.

This was a big weight of my back. Due to my naivety and inexperience, I got into this mess. I am profoundly deaf which made communication quite difficult.

Last year, my partner broke up with me after 7 years - a joint mortgage for our home was rejected at the last minute (through broker) as the CCJ was wrong dated - one of the contributions for the break up. My partner and her parents were aware of my history (in fact she was my rock during the bankruptcy stuff).

The credit reports from all CRAs I applied for had no records of CCJ so I assumed it was dropped off. Obviously I was wrong!

I went on an extreme credit file clean up and being anal on every minor detail. And got a CashPlus card with CreditBuilder to improve my score (my first ever credit card!).

My bankruptcy record is due to drop off from my credit files by end of this month.

I have been renting a room in a 4 bed house for a year but I need to move so I have looked at apartments for myself and a friend. My viewing appointment was cancelled by a letting agency because their client wouldn't consider tenants who had been bankrupt. I asked the letting agency if they had any other properties but they didn't even reply to my email so I guess they didn't want me in their books. I even explained that I have never had any problems paying bills, etc. and have good references from both employer and my current landlord.

I earn a good salary of 34K plus ISA of 20K and current account of 3K but I don't feel happy - nothing I do seem to make a difference. I lost my partner, my stepdaughter, and my dog.

I turned 37 a couple of weeks ago, older and wiser but my history is still affecting me and my confidence is so low so there was no real reason to celebrate. I may have depression of some sort but that's another stigma and record that I don't want.

Is there any chance at all to go back and cancel my bankruptcy or even sue the solicitors for bad advice and/or negligence? Is there anything at all I can do?

Sorry for the long post.

uptheanti

Hi sounds like you have a bit of depression going on there maybe you should seek some help with this there is help available and remember things will get better.

tonym_uk

uptheanti wrote: »

Hi sounds like you have a bit of depression going on there maybe you should seek some help with this there is help available and remember things will get better.

Thank you for your post.

However I cannot see how this would help with having a normal life (e.g. renting) neither can I afford to have another "mark" on my life.

Black_Eyeliner

What a mess. Seems unfair that others walked away unscathed. I can't see how it's possible to 'cancel' a bankruptcy, and it'd probably be a lot of hassle trying to go down that route, or to try to sue those involved, and this may on,y leave you more disheartened.

You need to try and put the bankruptcy behind you and move on, rather than raking it all up again. It'll drop off your credit file soon, and since you've got a good job and plenty savings, I'm sure you'll be able to rent - or even buy - somewhere soon enough.

Can I ask why you had to declare your bankruptcy to a letting agency?

tonym_uk

Thank you, Black_Eyeliner.

I already did put all that mess behind me but it seems to keep coming up like with joint mortgage, the break up, and now the letting agency.

I mentioned my bankruptcy history to the letting agency because of the credit checks they do for all tenants - the fee is not refundable (£400).

My research on both here MSE and Google - the census was to be honest and upfront from the start and unfortunately most if not all letting agencies run a credit check.

My Noddle file is still only 1/5 despite being on electoral roll, having a pay monthly phone contract, and a CashPlus Creditbuilder. I applied for a 0% finance thing for a Macbook - even though I could pay outright, I wanted a loan to help with credit. My application was declined.

I have no debts apart from old-style student loans which I am currently paying.

It is so frustrating.

alastairq

The only way a Bankruptcy can be reversed..or 'cancelled', as is wished, is for debts discovered under the bankruptcy, to be cleared, and for the IS [and others] costs to be met.
Then, a Bankrupt can seek to have the Court annul the Bankruptcy Order.

It's all a bit like getting divorced, then trying to reverse the process, [because it made one feel bad?}

With regards to renting? Not all [letting] agents will be concerned about the presence of a Bankruptcy on one's credit records.

But, if a Landlord wants all BRs excluded, that is their prerogative.

There are, indeed, plenty more fish [rentals] in the sea...so far, only one agency & landlord have been quoted.

Why not simply wait a while...once the Br falls off your credit records, an agency will be none the wiser?

It seems you are back on your feet, financially...so why bother worrying about the bankruptcy?

tonym_uk

alastairq , thank you for the post.

I agree so far one landlord/one agency although the agency is a major countrywide with many properties in their books.

I did mention to the agency that BR is due to be dropped off but it seemed not to make any difference. So it does appear that even if my BR occurred 20 years ago, it is still a "mark".

So no matter what I do, that mark will always be there on my shoulder ready to bounce me on anything.

22bear

I rented my flat while bankrupt from a private ad in Gumtree and it's a really nice place, rent is cheaper than one rent through a letting agency..and no credit checks!! There was good choice on the site.


My landlord told me that she'd had nothing but trouble the last time she used a letting agent to rent it (one of the national well known ones), they were charging her a hefty monthly fee for a pretty useless service, so she decided just to do it herself..all she asked for was proof of employment, previous wage slips, 3 months bank statements and a couple of references and one months rent as deposit and proof of setting up a standing order for the rent

tonym_uk

Thanks 22bear.

That's good news re private landlord and shall have a look in Gumtree but the fact remains... why is BR still an issue now? If you have been discharged and it had been dropped off your records, that should be it as long as you maintain records of last 3-4 years.

Every time I see a questions like "have you ever been bankrupt?", I am reminded of the past which depresses me.

Why do CRAs not hold records of reasons for BR, e.g. I didn't go on a clothes spending spree, or running away. I am a decent honest guy who made a bad mistake due to naivety and used as a scapegoat.

22bear

I totally get what you're saying there! I was only discharged fairly recently and I also worry about how easy (or not!) it'll be for me to find another rented place in the future because my current work is a training post in the NHS and I'll be finished in 2 years and will most likely have to look for work in my field in another city and I'm concerned about finding a place with the bankruptcy on my credit file....


...however my experience of finding and securing a place pretty easily through Gumtree does help to ease my anxiety about doing so again when the time comes for me the future. My feeling is that there will always be someone needing to rent a property out cos they are desperate for a tenant! I've got a mate up in Liverpool who fancies himself as a bit of a property magnate and has several flats for rent and he's always moaning that he having trouble finding tenants for all his properties (which are all modern built lovely city centre flats, by the way!)...and he says that if he would have no problems at all renting to an ex-bankrupt just as long as the came with good references, a steady job and proof that they've always previously paid their rent on time before!!


My feeling is that if you tell a letting agency about your previous bankruptcy and the reasons for it, then for every one that closes the door, I'll bet that there will be more that will be sympathetic and for whom it won't be a problem, as long as you're a good tenant, keep their place in order and pay them the rent on time...and don't forget, you can always offer to pay them 3-6 months rent upfront if you're able to, I reckon they'd jump at that offer, I know I would, wouldn't you?

[Deleted User]

I recently took part in CBT - 2 sessions and I was signed off, didn't realise my strength, wow to that type of thinking, just a quick burst reminded me of how far I've come and how it is possible to look back and see achievements even the tinyest ones, why what happened, happened

Anyway appreciate that is not what your asking but never regret anything that see's you where you are now, I'd bet your life has improved somehow, sometimes the only person holding us back is us

As a letting agent and then someone accessing my application for a job said why did you need to tell me that? (ok I'm being far politer really as to what was said) in a cruel to be kind way