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Unusual question / advice



K

kingcole

Well-known member
Jan 2, 2010
5,315
So far down Shoreham Beach, I am virtually back in
Mate of mine 7 years ago went bankrupt and had his house repossed.

Life continued. He's back up on his feet, working hard and enjoying life.

And then, a few months ago a knock at the door. It was one of those people like heir hunters on tv.

There was no dead relative. But in fact his old mortgage company was trying to track him down. As after the repossession the house was sold and even after all the fees and crap there was a substantial 5 figure sum left over.

This is now my mates. Or so he hopes.

He's confirmed his ID, but now it just needs to go to the district judge to be released.

The question is this. Would the old creditors from the bankruptcy have a claim to this and if they did, how would they know.

Should he get legal advice.

Anyone got any ideas
 






Blue Valkyrie

Blue Valkyrie

Not seen such Bravery!
Sep 1, 2012
32,165
Valhalla
Surely he would have paperwork from the bankruptcy making this clear.
 




Eeyore

Eeyore

Colonel Hee-Haw of Queen's Park
NSC Patron
Apr 5, 2014
23,538
I thought there was a six year rule on these things.
 






clippedgull

clippedgull

Hotdogs, extra onions
Aug 11, 2003
20,789
Near Ducks, Geese, and Seagulls
Seems strange. I would have thought that the mortgage company as part of the bankruptcy proceeding would have to report back to the court if assets were left over after disposal of the property. :shrug:
 


Two Professors

Two Professors

Two Mad Professors
Jul 13, 2009
7,617
Multicultural Brum
Knowing banks and building societies,it's much more likely the substantial sum is still owing to them,and they've only just caught up with him.SIGN NOTHING
 






Eeyore

Eeyore

Colonel Hee-Haw of Queen's Park
NSC Patron
Apr 5, 2014
23,538
Blue Valkyrie said:
Isn't the rule 12 years for bankruptcy ?
Click to expand...

Largely depends on what the debt relates to.

Mortgage shortfalls could still be recovered (12 years), although it would be strange that this wasn't sorted at the time. Other than that the Limitations Act should keep the period to six years (assuming no contact has been made prior).

A mortgage (or charging order on a property) is a secured debt however, which may mean they can chase him still.
 
Last edited:


K

kingcole

Well-known member
Jan 2, 2010
5,315
So far down Shoreham Beach, I am virtually back in
just to clear up a couple of points.

It's the bank that was trying to track down my mate when he went skint he owed them but when they got round to flogging his house there was a load left. It's this money hats on the table for my mate to collect.

He was made bankrupt 7 years ago. The question really is is can some of the old creditors make a claim on his new found wealth? Considering this money is from the prior bankruptcy period.

When he went skint he wasn't in a great place and probably didn't even open a letter, let alone read and keep one for reference.
 




Norman Baker suck my lozenge

Norman Baker suck my lozenge

New member
Feb 24, 2004
6,638
Freshening up for the Ladies.
kingcole said:
Mate of mine 7 years ago went bankrupt and had his house repossed.

Life continued. He's back up on his feet, working hard and enjoying life.

And then, a few months ago a knock at the door. It was one of those people like heir hunters on tv.

There was no dead relative. But in fact his old mortgage company was trying to track him down. As after the repossession the house was sold and even after all the fees and crap there was a substantial 5 figure sum left over.

This is now my mates. Or so he hopes.

He's confirmed his ID, but now it just needs to go to the district judge to be released.

The question is this. Would the old creditors from the bankruptcy have a claim to this and if they did, how would they know.

Should he get legal advice.

Anyone got any ideas
Click to expand...

He could change his name to Crystal Palace,he'd then only have to pay back a penny in the pound.
 




S

Swillis

Banned
Dec 10, 2015
1,568
kingcole said:
just to clear up a couple of points.

It's the bank that was trying to track down my mate when he went skint he owed them but when they got round to flogging his house there was a load left. It's this money hats on the table for my mate to collect.

He was made bankrupt 7 years ago. The question really is is can some of the old creditors make a claim on his new found wealth? Considering this money is from the prior bankruptcy period.

When he went skint he wasn't in a great place and probably didn't even open a letter, let alone read and keep one for reference.
Click to expand...

The money was an undeclared asset at the time, which has most certainly not been accounted for by the official receiver. If he had of declared it then it would have been used to settle his debts. I would ring the official receivers office and clarify. It may be tempting to spend that money and chances are he wouldn't get caught, but it's not something I would risk.
 




L

Lifelong Supporter

Well-known member
Aug 4, 2009
2,053
Burgess Hill
It is not really whether the creditors have a claim over the monies but whether in fact the trustee does. Under existing legislation the trustee will have been required to have taken steps to protect his interest within 3 years of knowledge of the property as a potential asset in the bankruptcy. It is not clear whether he has done so.

Bankruptcy has plenty of issues and is complex. For instance has your mate been discharged from bankruptcy ? That could also have an effect on matters.

I see the proper thing for your mate to do is to send a recorded delivery letter to his trustee setting out the matters with a copy of relevant documentation asking whether he has any right to the monies. If his trustee was an insolvency practitioner rather than the Official Receiver and has now ceased to act it would also seem appropriate for him to write to the local Official Receiver's office.

As an aside is your mate married and was the property jointly owned with his wife. If she was not bankrupt she might have entitlement to a share of the proceeds.

Just a few thoughts for you.

.
 


D

dangull

Well-known member
Feb 24, 2013
5,110
Just take the money and move abroad, or forge a passport and assume a different identity. Google have done far worse not paying taxes ect.
 


D

Deleted User X18H

Guest
You might find you can also claim back any PPI you had on this mortgage.

A recent FOS referral ruled that despite the consumer owing a substantial amount on a defaulted loan. The lender could not determine that the debt to them was any more of a priority than other debts held.

So despite the debt the lender HAD to pay the PPI refund to the punter who owed them thousands.

Not sure if this was within timescale of the 1980 limitations act or not.

So you could get yourself so more dough that way.

Sorry I mean your 'mate' ;)
 


SUA Seagull

SUA Seagull

Well-known member
Jul 23, 2016
408
Stratford-upon-Avon
Your mate might want to take a look at this CAB link, which contains a lot of useful data on bankruptcy.

https://www.citizensadvice.org.uk/d...er-you-go-bankrupt/discharge-from-bankruptcy/

There's a "start chat" button on the left hand side which your mate might wish to use to have a chat directly with the CAB.

As others on here have quite rightly pointed out, personal bankruptcy can be complex and the answer to the situation you describe is likely to be specific to the facts applicable to all of your mate's personal circumstances.

I have today put your mate's issue to a friend of mine who's a Licensed Insolvency Practitioner and if he offers any insight I will send that to you via PM. May be a couple of days as I think he's still on vacation.

Good luck with this, and I hope your mate gets a good result.:thumbsup:
 


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