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Help007
New Member
91 Posts |
 Posted - 20 February 2009 : 12:15:31
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Hi guys can someone help please. I went bankrupt in December my husband due to his job hasn't yet long story here. WE gave up the keys to our home and rented at the same time. My husband has gone into a DMP for now. We advised the secured loan co and the house is now on the market. I thought once sold and any monies split between the mortage and secured loan co then they come after us for the money (I included shortfall in my bankruptcy) this would be when my husband would go bankrupt.
Today he received a letter 3 months after handing keys back issuing a default notice and demanding the full amount of £124k!!!! WE had a £50k loan so how on earth can they demand this much and does it not happen after the sale of the house? He is not able to declare bankruptcy yet. |
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Melanie.n
forum expert
United Kingdom
1282 Posts |
Posted - 20 February 2009 : 12:24:15
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Hello there Help 007 and welcome to the forum
Unfortunately they are entitled to claim against you whole amount of the debt once default has been established (excess of 3 months arrear) and also entitled to claim what you would have paid had the loan been repaid over the term) If the secured loan is joint the company will claim the whole of this amount in your bankruptcy but are entitled under joint and several liability to go after your husband for the whole amount also.
The likelyhood of the sale of your house clearing the existing mortgage plus costs of sale etc is extremly small, let alone the secured loan as properties are usually sold at auction at a much lower figure than on the 'open' market
Why can't your husband file now for bankrupty as they are going to chase him for this amount?
Melanie Nicholas
28 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
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Help007
New Member
91 Posts |
Posted - 20 February 2009 : 12:56:14
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Hi Melanie,
I am sure it is you I spoke with on the phone who gave me all the great advice on what to do many months back now.
MY husband is a PCSO and awaiting to be a police officer but they will not allow him to be bankrupt and get in but once in they are ok with it and also ok as his current job. He was meant to start in Jan but he had just started the DMP so they have deferred his start date awaiting how the DMP has run and then will decide if he starts, we get a feeling due to the house now that they will stop him starting anyway and if this is the case he will go bankrupt sooner rather than later.
In terms of the secured loan company, do they go after their monies now or once the house is sold. The house is currently for sale on the open market. Also I put on my SOA the amoutn borrowed by thesecured loan co of £50k and not that massive sum so it is way out. My amoutn owed looks horrendous with this the morgage and my huge other debt so it is now even more of a massive amount.
The OR has been awlful to me aswell due to the amount borrowed my interview was horrendous and he kept saying things really dont look good for you. He said I would have another interview aswell but 2 months on I still awaiting for this interview which will be worse than the first. I explained that I kept borrowing money to keep paying my loans and credit cards each month I did this for 3 years thinking things would change but of course they didn't.
The thing is he was kind of accusing me but if I was just borrowing money and spending on luxuries etc then why did I have 3 credit cards with excess of £10k limit and never use them so they have nil balance. I really only used credit to pay my credit each month and he could not understand this. Mine is just extreme due to the amount involved byt I am no different to most genuine people.
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Melanie.n
forum expert
United Kingdom
1282 Posts |
Posted - 20 February 2009 : 13:16:08
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Hi there, and yes it was me yo uorignally spoke to on the phone! so sorry to read you did not have such a pleasant experience with the OR's but as 2 months have passed i doubt very much they will be back in touch with a second interview. Unfortunately there are a few jobs worth's out there, but thankfully few and far between, just your luck!
With regard to your end of the secured loan no worries with regard to your husband they should wait until the property is sold for an eventual figure, which will reduce, but computers being as they are once the 3 months arrears stage has been met they will generate out these letters, that is all that has happened.
My suggestion for your husband is to have a chat with his welfare officer, explain the scenario and see whether they will allow the bankruptcy to proceed, in the majority of bankruptcy cases he would be discharged after 6 months anyway, so he could do it now, stay as a PSCO for next 6 months then apply for regulars... having now been awarded the title 'discharged' I ask him to do this i am aware of a few forces which actually prefer this option as he would be staring his training with no money or debts concerns!
Good luck and if you need me you know where I am
Melanie Nicholas
28 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
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Help007
New Member
91 Posts |
Posted - 20 February 2009 : 13:29:39
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Thanks Melanie.
He spoke with welfare after our conversation and it was vetting in the end that made the decision. Welfare were very supportive and said that his current job was safe and no issues and once a regular no issues but it was the going from one to the other. The decision is made from vetting next month as to if he is allowed to start training if it is a no he will continue and go bankrupt then reapply in the 3 years when he is allowed.
His force seems to be a bit behind the times and like you said it is far better in my opinion having no debts being a bankrupt or discharge than not as there are alot of people they are turning down due to a poor credit file and surely taking unknown persons on is more risky than someone who has already proved himself and is "dealing" with his debt and not having any to be a risk. |
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Melanie.n
forum expert
United Kingdom
1282 Posts |
Posted - 20 February 2009 : 14:13:14
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You state three years any reason? is this what the welfare guy has said? it seems unusual to be penalised by 3 years when you would only be bankrupt for a max 12 months - not being funny or anything but i wonder whether this welfare officer is up to date, prior to The Enterprise Act 2000 bankruptcies actually lasted 3 years on creditor petitions and 2 years on debts petitions...When we originally spoke was it through Mike Thomas aka Debtwizard if so get in touch with Mike as he is an ex copper also and tied in with all the forces welfare officers and he will know the current state of play as it does change. If you need Mike Thomas' tel number contact me via experts on the left hand side and i will provide it
Melanie Nicholas
28 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
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Help007
New Member
91 Posts |
Posted - 20 February 2009 : 14:49:44
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Yes it was through Mike.
It is 3 years after discharge before you are able to apply for regulars. WE were told this by recruitment and Mike himself confirmed. Does seem harsh. |
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Melanie.n
forum expert
United Kingdom
1282 Posts |
Posted - 20 February 2009 : 14:54:06
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Yes awfully harsh, considering that the Met plus other forces will recommend a serving officer goes bankrupt rather than an IVA - the reason given they are out of debt within 12 months as opposed to 60 months....strange that they then have these stipulations.
It may be a wise thought though to clear your debt burden and then wait the apply for the regulars...better to be on a lower income with no debt!!
Lovely to catch up with you, and i sincerely hope everything works out for you both mwuh mwuh
Melanie Nicholas
28 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
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Advice on Secured Loan
