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T O P I C R E V I E W
Hutch
Posted - 17 November 2010 : 13:43:52 Hi, My husband and I recently went Bankrupt and have now moved out of our property. We had stopped paying the mortgage and secured loan a month or so before going BR and included these as secured debts on our SOA.
We sent the keys back to the mortgage company and sent a copy of the letter to the secured loan company advising that we had vacated the property and were allowing it to be voluntarily repossessed. We did not sign the forms sent by the mortgage company which would have made us liable for any shortfall and we have not had acknowledgement that they have received the keys.
2 months down the line and we are still getting hounded daily by the secured loan company (Firstplus) who insist that we are still liable for payments. We have advised them that we are not interested in buying the BI and we have vacated the premises and that they should contact the OR but they are insistent and are threatening home visits to our new rented property.
My questions are: Are they legally entitled to pursue us for the mortgage / secured loan payments even though we have voluntarily handed back the keys?
In people's experience, how long will this go on and what is the best way of dealing with these collection agencies?
Do they have the right to send bailiffs and to try to repossess assets?
How long will it take the OR to sell the property? We believe there is some equity in it so both the mortgage company and secured lender are likely to be fully repaid.
Sorry for the long email but after all the stress of going BR we are still getting hounded daily by collection agencies and it's making it difficult to get on with our new life and make a fresh start.
Any advice appreciated.
2 L A T E S T R E P L I E S (Newest First)
Blackie
Posted - 18 November 2010 : 08:43:04 Dear Hutch
I agree with gettingoutofdebt in that you should direct any creditor to the OR. Firstplus is running scared as it sounds unlikely that they will receive any funds from the sale of the house and will sit as an unmsecured creditor in your bankruptcies.
You are not liable to them for their debt if the house has been sold. Once sold, no security exists and any shortfall to any secured creditor will become unsecured and therefore the debt will rank alongside all the other unsecured creditors.
They are trying to scare you - successfully by the sounds of things. They can not take further action against you and certainly can not send round the bailiffs. Your best bet is to telephone your examiner at the OR's office and tell him the exact situation. He will get Firstplus off your backs!
All the best
John Blackadder
gettingoutofdebt
Posted - 17 November 2010 : 15:05:04 Hi,
"Are they legally entitled to pursue us for the mortgage / secured loan payments even though we have voluntarily handed back the keys?"
This is a very grey area. If they call then the best option is to take the details of the person calling and pass them on to the OR. Any letters should be forwarded to the OR.
"In people's experience, how long will this go on and what is the best way of dealing with these collection agencies?"
The best way is to ignore them. As the debt was included in your BR there is nothing they can do except to keep hassling you and this is probably on the very edge of being legal.
"Do they have the right to send bailiffs and to try to repossess assets?"
The loan is secured on your property so this is the only asset they will be able to take.
"How long will it take the OR to sell the property? We believe there is some equity in it so both the mortgage company and secured lender are likely to be fully repaid."
They will want to release the equity fairly quickly although I don't have experience regarding time scales. BigAl used to be an OR so he may be able to provide some information and assistance to your questions.
