Charges on house - Cabot Financial chasing -

happyhelston

Dear all,

As usual I am turning to my trusty forum friends for help

I was declared bankrupt in 2015 - voluntarily handed my house back to Landmark and from that day forward was not entitled to know what happened to the house etc.

5 years later I am being called by Cabot.  I decided to take the forums advice and actually speak to them but they are insistent that despite me being bankrupt I am still responsible for a charge that was placed on the house prior to bankruptcy from a credit card owned by MBNA / Virgin totalling £4483.76.

I have written to my insolvency officer but can anyone here give me advice as to whether I am still liable ?

According to Cabot they are here to help and are friendly and bailiffs are a long way off ?! Thats reassuring then !!

Thank you all

Becky

TripleH

From reading earlier threads, it sounds that they have either got you mixed up with someone or they are trying it on with old debt.

Tell them you were bankrupt and to contact the Official Receiver.

JCS1

Secured debt is not included in a bankruptcy, but, once the property was handed back/repossessed the debt would then become unsecured and would fall into your BR.

I take it you did not sign any deed of acknowledgement after the date of your BR?

fatbelly

JCS1 said:

I take it you did not sign any deed of acknowledgement after the date of your BR?

That's the only way you would still be liable

happyhelston

Its been really interesting since posting this - I contacted Gov.uk Insolvency department who replied instantly and have been so helpful - they clarified that as the property was sold with a shortfall the charge became unsecured and therefore would be included in my bankruptcy which they very kindly put into an email for me to send to Cabot.

This was Cabots email prior to the confirmation from Insolvency Officer:

I have had a close look at your MBNA account and can see that according to the solicitors who were managing the account at the time of your bankruptcy, the account was secured with a charging order and therefore not included in your bankruptcy.

As your property was sold in 2018 and there were no surplus funds to close this account, the balance is still outstanding.

You could say there is a complete difference in opinion !!

Im awaiting Cabot Financial to return my call and let the arguement begin

Regards

happyhelston

TripleH said:

From reading earlier threads, it sounds that they have either got you mixed up with someone or they are trying it on with old debt.

Tell them you were bankrupt and to contact the Official Receiver.

I did but they are truly relentless.  Thankfully I have had an email from the Official Receiver to confirm they are wrong - just need them to accept it now

Thank you for your reply

happyhelston

JCS1 said:

Secured debt is not included in a bankruptcy, but, once the property was handed back/repossessed the debt would then become unsecured and would fall into your BR.

I take it you did not sign any deed of acknowledgement after the date of your BR?

Exactly right, no I signed nothing - I now have a wonderful email to share with Cabot from the Official Receiver so we shall see. I still think they are going to argue with me but now I have had it confirmed my information was correct I feel so much better

Thank you for your reply

sammyjammy

If you've shared the email I would stop communicating with them.

Minkym00

https://www.gov.uk/guidance/technical-guidance-for-official-receivers/43-creditors-and-liabilities

Chapter 43.109 applies, so if Cabot become difficult you can point them to here.