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Old debt on charging order being chased years after Bankruptcy

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I wonder if anyone can offer advice on this situation.
I went bankrupt in December 2014, my house was subsequently repossessed in 2016.

All has been quiet until last month I got a letter from Moorcroft Debt Recovery claiming they were chasing an outstanding debt.
I explained that I went BR in 2014, and they said they would investigate further.

They came back to me saying it was Lloyds Bank who got a charging order on my house for the money in 2011 so it wasn't included in the bankruptcy, and therefore was still outstanding.

Is this correct?
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Comments

  • emmajones1976
    emmajones1976 Posts: 1,345 Forumite
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    edited 15 November 2021 at 1:30PM
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    If the house was repossessed and Lloyds had a charging order on the house, then Lloyds would have received settlement when the house was repossessed in 2016, sounds to me like they are trying it on.
  • Mollie_Guinness15
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    Thank you. There was a shortfall, so would the debt die with that?
  • emmajones1976
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    Ah, so selling the house wouldnt have settled this charging order debt? In which case I dont know, Sourcrates is the expert so he will be along shortly.
  • Minkym00
    Minkym00 Posts: 775 Forumite
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    The shortfall is classed as a contingent liability and vested in the bankruptcy. They have made a mistake here unless you signed something to say otherwise.
  • Mollie_Guinness15
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    I was cautious not to sign anything. Thanks for the information. 
  • MalMonroe
    MalMonroe Posts: 5,783 Forumite
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    Hi, according to the information in the following link from Stepchange  

    https://www.stepchange.org/debt-info/debts-included-in-a-bankruptcy.aspx

    (scroll down to 'Are any secured debts included in bankruptcy?')  - mortgages and secured loan debts are included in your bankruptcy if your house gets repossessed.

    You could give Stepchange a call (it's free) - just to double-check, as there does seem to be a lot of conflicting information around - 0800 138 1111.
    Please note - taken from the Forum Rules and amended for my own personal use (with thanks) : It is up to you to investigate, check, double-check and check yet again before you make any decisions or take any action based on any information you glean from any of my posts. Although I do carry out careful research before posting and never intend to mislead or supply out-of-date or incorrect information, please do not rely 100% on what you are reading. Verify everything in order to protect yourself as you are responsible for any action you consequently take.
  • sourcrates
    sourcrates Posts: 29,212 Ambassador
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    The CO ceases to mean anything once repossession has happened, if there were insufficient funds to settle the debt then as has been pointed out, the debt will vest in your Bankruptcy, and you should write and tell them so.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • Mollie_Guinness15
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    Thank you so much everyone 
  • Mollie_Guinness15
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    Just to update you on this and thank you again. Moorcroft became a bit hostile and said they were just going to proceed with action without going back to Lloyds with the above information. 
    I contacted the insolvency service who confirmed what had been advised above and wrote to Moorcroft to tell them so. Hopefully that will be the end of it. 
    Thanks all. 
  • emmajones1976
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    Just to update you on this and thank you again. Moorcroft became a bit hostile and said they were just going to proceed with action without going back to Lloyds with the above information. 
    I contacted the insolvency service who confirmed what had been advised above and wrote to Moorcroft to tell them so. Hopefully that will be the end of it. 
    Thanks all. 
    Let them proceed. They can take it to court, you can have your day in court, you can produce a copy of your bankrupcy order and you can watch Moorcroft get a good rollicking by the judge.
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