Conveyancing debt and bankruptcy search

Mart0077

Hi
9 years ago I owned a house and had a secured loan. I owned the property with my ex and we split up and moved out of the property, I ended up going to court and have the house back to the mortgage company, they sold it and there was a shortfall of 15000 so the secured loan didn't get paid either . I have never payed the loan but it has now gone from my credit file and I am now buying a house which is just going through at the minute the mortgage has been passed get.
My question is that just before completion the solicitor does a search to check for bankruptcy but does anyone know if it just searches for this? Also will the outstanding debt show up even though it's not on my credit file and was from 9 years ago? Does the debt get registered with land registry if it was secured?
Any help in this would be greatfull

G_M

I can only answer the final question: no, land registry holds data (including Charges/loans) against properties, not people.

Since the property was sold, I assume the buyer would have insisted on the Charge being removed - and if they didn't, they would now have the Charge lodged against their own property.

Mart0077

So I should be ok buying a new house as I've never been declared bankrupt and the land registry won't hold such info on the debt thank you

martindow

Your title is confusing as in post number three you say you have not been made bankrupt, but never paid this debt. Have the mortgage company not chased for payment at all during the nine years?

Congratulations for sorting out your finances and now being in a position to buy a house again. What would happen if you had to settle your debt? You don't want to be back in a difficult financial situation again.

If they have not contacted you in the last six years maybe the statute of limitations would apply and the debt would not be recoverable.

Mart0077

No I've not been declared bankrupt and I've not been chase for the mortgage shortfall, I did however have a secured loan that I get a letter every now and then but I've not replied and it should be status barred by now.
I have sorted my life out over the last 6 years and now have perfect credit again I was young and stupid last time.
My concern was when the solicitor carries out the final check before completion do they just check for bankruptcy?

steampowered

Your lender may do a search of your credit rating (rather than your solicitor).

I'm no expert but understood that credit files only go back 6 years.

Mart0077

Yes that is correct my credit file is now perfect as only shows the last 6 years and been perfect since. I've been accepted for mortgage with the bank and the purchase is all going through we are about to exchange contracts but I read that my solicitor with do bankruptcy search, is this the only search they do on myself or can they see historic debts linked to previous property?
Is there some kind or register that holds this info other than credit files?
If not would i be right in saying I'll be ok

wantonnoodle

If I recall correctly, the bankruptcy check the conveyancers do before exchange is to check there are no charges against the property you are buying. That way, any that do exist can be investigated and resolved before completion, otherwise you may be liable for someone else's debt.

G_M

Mart0077 wrote: »

No I've not been declared bankrupt and I've not been chase for the mortgage shortfall,
that's good news
I did however have a secured loan that I get a letter every now and then but I've not replied
secured against what? The property has been sold so eiter it is now an unsecured loan, r it was secured against something else
and it should be status barred by now.
I may be wrong but I think this is not the case. You have received (and ignored) invoices/demands for payment.
I beileve the statute of limitatons apples if no action has been taken by the creditor for 7 years ie you've never heard from them

edit: Ah!

http://www.legislation.gov.uk/ukpga/1980/58

6 Special time limit for actions in respect of certain loans.

(1)Subject to subsection (3) below, section 5 of this Act shall not bar the right of action on a contract of loan to which this section applies.

(2)This section applies to any contract of loan which—

(a)does not provide for repayment of the debt on or before a fixed or determinable date; and

(b)does not effectively (whether or not it purports to do so) make the obligation to repay the debt conditional on a demand for repayment made by or on behalf of the creditor or on any other matter;

except where in connection with taking the loan the debtor enters into any collateral obligation to pay the amount of the debt or any part of it (as, for example, by delivering a promissory note as security for the debt) on terms which would exclude the application of this section to the contract of loan if they applied directly to repayment of the debt.

(3)Where a demand in writing for repayment of the debt under a contract of loan to which this section applies is made by or on behalf of the creditor (or, where there are joint creditors, by or on behalf of any one of them) section 5 of this Act shall thereupon apply as if the cause of action to recover the debt had accrued on the date on which the demand was made.

Pixie5740

Debts become statute barred if the debtor doesn't acknowledge them for 6 years (5 years in Scotland).