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PLEASE HELP: Bankruptcy and secured debt (mortgage)

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  • PLEASE HELP: Bankruptcy and secured debt (mortgage)

    Hi All,

    Would really appreciate if someone could give me a little advice/help!..as this stuff is like a minefield.

    I was made bankrupt over 6 years ago but at the time, it was agreed with the OR that because there wasnt any profit in the property, I would be allowed to keep my home, as long as I could keep up to date with mortgage payments. Sadly, 12 months after I defaulted on the mortgage and property was repossessed and the shortfall from the sale of the house became "unsecured" debt and was included in the Bankruptcy. As its been over 6 years, I am now completely clear from my bankruptcy but the Lender set the default date for the mortgage nearly 15months after the bankruptcy date. The Lender says it was secured debt and as such wasnt included in the original bankruptcy order.



    In reading the "Information Commissioner's Office" Data protection technical Guidance notes(2007) it says:

    (paragraph 14)

    Long-term secured loans

    If meaningful information is to be reported to credit referenceagencies there needs to be a consistent approach by lenders thatalso needs to take account of the practical problems they face. Thisis also necessary to treat all customers in this situation fairly.Consequently, a lender should file a default no later than six monthsafter the date of a successful court application to proceed withpossession unless

    • the customer has made reasonable and agreed arrangements torepay,
    • the lender can justify not filing a default on an exceptional basis.For example, the lender is fully informed of the circumstances andknows that payments will start again, or
    the loan has been included in a bankruptcy in which case thedefault should be filed in accordance with the guidance inparagraphs 47 – 48.

    [paragraph 48]

    Where a customer continues to pay a debt in line with the originalcontractual obligations, despite the debt being included in a bankruptcyor IVA ( including where the bankrupt agrees with Official Receiver thatpayments will continue), the lender would not be obliged to record theaccount as in default. If the customer stops payment at a later stage, thedefault recorded should show the date of the IVA or bankruptcy and thefact that it was settled only by IVA or bankruptcy






    I guess my question is, has anyone had any experience with this, or anyone have more legal background that could confirm these guidelines above and whether the default date on a mortgage repossession can be backdated to the Bankruptcy order it was included in. I know the shortfall is unsecured debt and automatically covered but these guidance notes above seem to imply the default date should be backdated also.

    Would appreciate any help before I contact the credit file company to dispute.

    Many thanks
    Last edited by Lionuk1; 13th September 2016, 16:21:PM.
    Tags: None

  • #2
    Re: PLEASE HELP: Bankruptcy and secured debt (mortgage)

    Can anyone help please?

    Comment


    • #3
      Re: PLEASE HELP: Bankruptcy and secured debt (mortgage)

      Hi, someone will jump in on this, just give them a day or so as its monday.

      Your saying that during your bankruptcy and the administration period afterwards, there was no equity in the property you lived in, or not enough for the OR/Trustee to include it. Then after ( more than a year am guessing ) , then you defaulted on your mortgage payments and they took action, and this left a shortfall ( after the sale ).

      Your asking if the default should have been registered relative to the bankruptcy date, or if they ( mortgagee co ) are within there rights to claim the default 18 months afterwards

      Am no use to you on this question, but the date ( year ) you was bankrupted my be usefull to who answers you because admin rules changed around that time for the OR/Trustee
      crazy council ( as in local council,NELC ) as a member of the public, i don't get mad, i get even

      Comment


      • #4
        Re: PLEASE HELP: Bankruptcy and secured debt (mortgage)

        Originally posted by Crazy council View Post
        Hi, someone will jump in on this, just give them a day or so as its monday.

        Your saying that during your bankruptcy and the administration period afterwards, there was no equity in the property you lived in, or not enough for the OR/Trustee to include it. Then after ( more than a year am guessing ) , then you defaulted on your mortgage payments and they took action, and this left a shortfall ( after the sale ).

        Your asking if the default should have been registered relative to the bankruptcy date, or if they ( mortgagee co ) are within there rights to claim the default 18 months afterwards

        Am no use to you on this question, but the date ( year ) you was bankrupted my be usefull to who answers you because admin rules changed around that time for the OR/Trustee
        Hi, thanks for your reply. The bankruptcy was early 2010 and repossession was late 2011. I've read a few stories online that the Financial ombudsman has overruled a mortgage company and forced them to backdate to a bankruptcy start date but was just hoping someone with some knowledge on this subject could help me. The ICO guidance notes I posted above seem pretty clear but was hoping to hear from people that maybe have had this same problem and how they got on or someone with the background that could give me some advice on the subject.

        thanks again for any replies.....

        kind regards

        Comment


        • #5
          Re: PLEASE HELP: Bankruptcy and secured debt (mortgage)

          [MENTION=87380]Diana M[/MENTION] [MENTION=7765]Joanna C[/MENTION] ??
          Debt is like any other trap, easy enough to get into, but hard enough to get out of.

          It doesn't matter where your journey begins, so long as you begin it...

          recte agens confido

          ~~~~~

          Any advice I provide is given without liability, if you are unsure please seek professional legal guidance.

          I can be emailed if you need my help loading pictures/documents to your thread. My email address is Kati@legalbeagles.info
          But please include a link to your thread so I know who you are.

          Specialist advice can be sought via our sister site JustBeagle

          Comment


          • #6
            Re: PLEASE HELP: Bankruptcy and secured debt (mortgage)

            There is no point in contacting the credit reference agency - they just report what the creditor tells them.

            You need to dispute this with the creditor, see http://debtcamel.co.uk/debt-default-date/. As that article says, default dates can be tricky to get sorted, sometimes the ICO gives rather odd decisions given its own rules (!), so if the lender doesn't get the matter resolved, I suggest you take the complaint to the Financial Ombudsman, not the ICO.

            Comment


            • #7
              Re: PLEASE HELP: Bankruptcy and secured debt (mortgage)

              Originally posted by Debt Camel View Post
              There is no point in contacting the credit reference agency - they just report what the creditor tells them.

              You need to dispute this with the creditor, see http://debtcamel.co.uk/debt-default-date/. As that article says, default dates can be tricky to get sorted, sometimes the ICO gives rather odd decisions given its own rules (!), so if the lender doesn't get the matter resolved, I suggest you take the complaint to the Financial Ombudsman, not the ICO.
              Thank you for your reply. Hope this doesnt sound a silly question....Do you think it might be worth being a little more direct and getting a solicitors letter issued to the creditor, threatening legal action, if they dont following ICO guidelines? I've read somewhere that someone threatened to take a creditor to small claims court for the damage it was doing to their credit file and stopping them from obtaining credit? Sometimes the risk/cost to the creditor isnt worth being difficult over an old debt, especially when there seems guidelines in place that show, they are wrong? appreciate any advice...thank you again
              Last edited by Lionuk1; 13th September 2016, 20:35:PM.

              Comment


              • #8
                Re: PLEASE HELP: Bankruptcy and secured debt (mortgage)

                Have you put in a formal written complaint to the Data Controller for the creditor?

                Comment


                • #9
                  Re: PLEASE HELP: Bankruptcy and secured debt (mortgage)

                  Originally posted by Debt Camel View Post
                  Have you put in a formal written complaint to the Data Controller for the creditor?
                  Hi, thank you again for your help. So far I've only disputed the default date and gave the ICO guidelines as the reason for my dispute....Was hoping to get advice from here for the next step. Would formal written complaint to Data controller for the creditor be that next step? All a little confusing so didnt know if a solicitors letter giving a "final warning" before taking it further was the right option?

                  Is the formal written complaint you mentioned, the letter I would send to the lender, setting out my reasons for the complaint etc? Sorry for all the questions, is there a template I should follow for this type of complaint, as wouldnt know the right/best format to use.......?

                  thank you so much for your replies, really do need the help!

                  Kind regards

                  Comment


                  • #10
                    Re: PLEASE HELP: Bankruptcy and secured debt (mortgage)

                    Yes the formal written complaint goes to the the data controller for the creditor - template letters in the link I gave above.

                    Comment

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