Bankruptcy threat...............how long before I know?????

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After having my house repossessed in 1991, I meekly started paying 60 a month in 1998 towards a claimed debt of about 64K. After about 18 months I was told to 'up' the repayments to 120 a month. After reading this site, I dug my heels in and SARN'd the lender and their Solicitor also asking for MIG etc. They responded with computer records. I kept insisting on the MIG and mortgage deed which they refused to supply. This went backwards and forwards for about 6 weeks when the lenders solicitor obviously lost patience and said they were getting nowhere and are referring the case back to the lender recommending bankruptcy proceedings. (Incidentally, they also threatened to send their 'agent' around to my house). Does anyone know whether I just have to sit and wait to see if this threatened action arrives or is there a time when it becomes void and I can confidently get back on with my life without the threat of bankruptcy proceedings?

-- ken chapman (chapmank1@aol.com), November 02, 2002

Answers

Ken,

As I understand it by making monthly payments you have effectively acknowledged the alleged debt. After each acknowledgement the 12 year limitation period starts afresh.It also depends as to whether a money judgment order has been issued, if there has, then the Lender can pursue you indefinitely. If an MJO has been issued it may be that bankruptcy is your best option, however, I am no legal expert, so I would advise you to check this out with one first. Make sure you read the Home Repo guidance notes too. Sorry I haven't better news. Good Luck.

Mark.

-- M Amos (idgroms@hotmail.com), November 02, 2002.


You are correct in identifying this as simply a threat. As such, it carries no legal weight whatsoever. They may or may not choose to carry out the threat, and you have no way of knowing if or when. If they do issue bankruptcy proceedings, you will recognise it at once, as you will receive a Statutory Demand, which takes the form of an official court form and will almost certainly be sent recorded delivery. If this happens, follow the advice on this site regarding bankruptcy - but I agree with Mark that it would be a good idea for you to get some advice on whether bankruptcy might in fact be the best solution for you. Best of luck

-- Melody (mbc109@york.ac.uk), November 04, 2002.

the Halifax threatened us with this 2yrs ago, sadly for us they have continued and we went to court(debt of 60,000), you need to consider as we have, whether you should bankrupt yourself. one line of advice was that should they get an attachment of earnings on my husbands salary, then it would be a good time to bankrupt ourselves, another thought is what effect bankrupty would have on your life, if you have no assets, what have you got to lose........good luck,

-- amanda b (amandab1@blueyonder.co.uk), November 04, 2002.

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