Help needed

Spillainy · 14 September 2018 at 6:55PM

Hello, first timer here and looking for some advice.

I have recently been contacted by several debt collectors for debts owed in 2007.

I have moved around a lot since this time I stopped paying and also went through a repossession in this year.

One of the debts is for the mortgage shortfall of £48000

The rest are credit card debts, varying from £600 to £2000.

I currently work part time and earn £400 a month, the rest of the time I'm caring for our son with learning difficulties.

All of these debt were in place before I met my wife, she owns her house of wherw we all live.

I do not own any part of the property nor contents.

If my debt collectors decide to turn up at the door trying to enforce these debts, are they able to gain entry and remove my wife's goods.

She was unaware of my debt when we met, I informed her shortly before getting married.

I'm worried this might affect her and my son's well being if debt collectors or bailiffs decide to turn up and try to scare my wife into paying or taking her property if in a case I am not there when or if they do decide to make a house call.

I have no way of being able to pay these debts, especially the mortgage shortfall.

What are my options?

It's been 11 years nearly 12 since I have had to deal with these debts.

macman · 14 September 2018 at 9:23PM

Debt collectors cannot do anything-they have no more power than any other citizen. Bailiffs with a CCJ can seize goods. but they cannot force entry to a residential property. Yes, they will be likely to attempt to seize any goods that your wife cannot prove are hers by way of a receipt.
However, given the apparent scale of your debts, the only items they are likely to bother with are cars, if in your name and not on finance.
Your options would seem to point to bankruptcy if you have no property or assets, and negligible income, but first you need to check if these debts, being old, are statute barred.

Karonher · 14 September 2018 at 9:26PM

Hopefully others will have more advice, but if you have not paid or acknowledged the credit cards for a period of 6 years they should be statute barred and cannot be enforced. I think the mortgage is different and it may be 12 years so that could be still within the timescale to chase. Also if a CCJ has been put on your account, that will mean they have extra time to chase for the credit cards.

As for your wifes house, I would think there is good and bad news. I don't believe they can force their way into a home but can walk in through an open door. They cannot take someone else's goods, but your wife may be asked to prove what is hers via receipts. If it is a bailiff I think there are fewer options open to them, but if it has gone to the High Court that could change things.

sourcrates · 14 September 2018 at 9:41PM

Hi,

As long as no court action has been taken, debts last paid in 2007, will be statute barred, under the Limitations act 1980, you should write back informing them of such, and that you will not be paying them.

Debt collectors are not bayliffs and cannot do anything, they mainly work via the phone and by letter, home visits are rare.

The mortgage shortfall may also be SB soon, its 12 years for this type of debt, depends when the cause of action date was, hopefully the limitations act may come to your rescue again there, if not, there’s not much they can do to you anyway given your circumstances.

Spillainy · 15 September 2018 at 9:21AM

Thank you for the replies, there hasn't been any ccj or court actions so far, my credit file on experian is clear from any of the debts I owe to these companies, I was even able to gain a phone contract and car finance recently.

I'm not overly concerned about the credit card debts as they are for low amounts. The mortgage shortfall however worries me due to it's amount.

Bankruptcy is something I have considered, I have tried before but the paperwork side was pretty full on and 8 struggled to complete it. This was 7 years ago though so hopefully might have been simplified a bit more since then, or a clearer process.

I'm on first base letter contact from all companies owed so far, I have not yet responded to them

Just_Di · 17 September 2018 at 5:27PM

Spillainy wrote: »

debts owed in 2007.

I have moved around a lot since this time I stopped paying and also went through a repossession in this year.

One of the debts is for the mortgage shortfall of £48000

. . . . I have no way of being able to pay these debts, especially the mortgage shortfall.

Who was the mortgage lender because if they are a member of the Council of Mortgage Lenders (most High Street and mainstream lenders are) then they should only start action to recover the mortgage shortfall within six years not twelve years as that's written in the CML Handbook, albeit it's a voluntary code?

Was this a Voluntary Repossession where you hand back the keys? I ask because most lenders ask you to sign a form stating you will pay any shortfall with a Voluntary Repossession, so did you do that?

Can you also remember whether you had a Mortgage Indemnity Guarantee with your loan? This is an insurance policy paid by the borrower for the benefit of the lender (a one-off payment added to the loan at the start of the mortgage usually).

If there was a MIG then the lender is paid the shortfall by the insurer (so it's a win-win situation for them) and then the insurer pursues the borrower for the money years later in the hope that the borrower's financial situation will have eventually improved.

I tend to think this MIG system makes it easier for the lender to repossess quickly (because they can't lose financially) and/or sell the property at Below Market Value in auction (because they can't lose financially). A sale Below Market Value can be challenged when it comes to the pursuit of a mortgage shortfall.

Was this a mortgage in your sole name or joint names because joint and severally liability means that either party can be chased.

Having said all that, with any luck this debt may become Statute Barred next year (2007 + 12 years) so try not to worry, and post on the forum if you get any contact before responding to it.

Di

Spillainy · 17 September 2018 at 8:30PM

Thanks for the reply To

The mortgage was with Natwest, I cannot recall if I had the mortgage indemnity guarantee, it was so long ago, also I have no paper work with any reference from that time.

All I can remember is a broker doing all the legwork with me just supplying details and signature and paying the fees.

I can remember that I was paying an insurance alongside the mortgage monthly payments which jumped up the total monthly by another £100 - £150 for the insurance alone.

I sent back the keys voluntarily, after a letter received from them stating repossession after a spout of non payments ( after losing my job )

It was in my name only, and yes the property sold for a lot less than what the property was purchased for.

I took out a mortgage for around £104k on a property priced £110k , i only paid into it for around 12 - 18 months before repossession process started. Meaning they pretty much sold it for around 70k or less.

Just_Di · 18 September 2018 at 2:24PM

Spillainy wrote: »

The mortgage was with Natwest, . . . . All I can remember is a broker doing all the legwork with me just supplying details and signature and paying the fees.

I can remember that I was paying an insurance alongside the mortgage monthly payments which jumped up the total monthly by another £100 - £150 for the insurance alone.

NatWest is a member of the Council of Mortgage Lenders (aka UK Finance) so they shouldn't chase you for the mortgage shortfall after six years. However I wouldn't put it to the test so if you hear from them post on your thread for an update.

I see the mortgage was 'sold' to you by a broker together with an insurance policy of some sort. Would that have been PPI or maybe an endowment policy? Does that broker still exist?

If it was PPI would/should it have kicked in when you lost your job so couldn't pay the mortgage? If it was PPI but you couldn't claim might you have been missold the policy?

Di

Spillainy · 26 September 2018 at 7:47PM

Hello Di,

I believe the extra payment along side the mortgage was a payment protection insurance.
This was never used, but then at the time I was going through a tricky break up and job loss, i turned to self medicating and lost myself for several years, with it being 11 years ago or so, I cannot remember too much of the situation.

I recently received a letter of action from Lowell for one of my debts, stating the next step they will take is court action.

I've run through a step change debt charity process, due to my low earnings and amount of debt, the action plan suggested is to either offer a token payment of £1 a month or file for bankruptcy.

There's 2 issues here, if I acknowledge the debt after all this time with a token payment, I will have no ground to write it of, bankruptcy isn't an option as I stand to lose my car which is on HP, we need this car to transport my family and most importantly our son with learning difficulties, unfortunately he is on the lower part of mobility allowance otherwise we would utilise that instead.

I've spent the last few years working on bettering my credit file so was surprised to see these letters coming through even though my credit report does not show these old debt and I have been able to gain credit from a few companies this last year.

A ccj will start to throw that out to say the least.

Do they have grounds to do this after all this time?
I've got 14 day to repay the full amount to this certain debt collecting agency before they take it to court.

What options do I have at this point?

Help needed

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