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joella68
Junior Member
United Kingdom
280 Posts |
 Posted - 19 November 2009 : 16:17:02
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hi all im looking for some help for my mum regarding statute barred on a repossed property.............can anyone help please ??
moving forward to new beginnings
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Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 19 November 2009 : 16:21:22
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Hi Joella68
A direct quote from the Inland Revenue website (www.hmrc.gov.uk)
IHTM28384 - Law relating to debts: statute-barred debts
If a lender allows time to pass without receiving any payment an action for recovery may become barred.
Under the Limitations Act 1980 the time limits are
in simple contracts, 6 years
in contracts under seal, 12 years.
If the debtor acknowledges the debt in writing or makes a part payment within the original limitation period, then the time limits start to run again from the date of acknowledgement or the date of payment.
Even though the lender may be barred from pursuing recovery, a debtor may decide to pay the debt after the expiry of the time limits. Because of this you should allow a debt which is otherwise statute-barred if the personal representatives pay the debt and you receive evidence that the payment has been made.
I hope this assists - I am sure an expert will assist and it may be worth looking on HMRC website
Good luck, Richard
"There are no problems - only solutions..." |
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joella68
Junior Member
United Kingdom
280 Posts |
Posted - 19 November 2009 : 16:27:12
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thanks richard this is a long and complicated story which needs expert help lol and its got many twists and turns to the story ! i will put the whole story down if some kind expert comes along with help on this one, lets wait and see...........
moving forward to new beginnings
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Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 19 November 2009 : 16:48:08
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Jo
I wish you lots of good fortune - I am sure a suitably qualified expert wil assist you.
My regards to you, Richard
"There are no problems - only solutions..." |
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joella68
Junior Member
United Kingdom
280 Posts |
Posted - 19 November 2009 : 18:31:30
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bump
moving forward to new beginnings
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 19 November 2009 : 18:39:34
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I think you may need to talk to either Paul Johns from RevivaUK or Melanie from Jones Giles on this.
Only someone with either in depth knowledge of Insolvency law or someone who has been though this themselves in the past would really know about this.
This is also something that is going to have to be handled very correctly so professional help would be the best option. |
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joella68
Junior Member
United Kingdom
280 Posts |
Posted - 19 November 2009 : 18:45:28
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yes thanks for that, agreed, its a very complex matter
moving forward to new beginnings
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Jane.l
Average Member
511 Posts |
Posted - 20 November 2009 : 08:39:20
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| If this is a mortgage shortfall debt, it is not 6 years until it is statute barred but 12 or 15, cannot remember which |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 20 November 2009 : 12:36:02
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It's 12 years for a mortgage.
The glimmer gets brighter all the time
Jan
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adelebw
Starting Member
United Kingdom
39 Posts |
Posted - 20 November 2009 : 13:09:33
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Hello, My name is aAdele and I am in a similar position. We bought a house in 1990 for 32,950 (wow) then in 2000 the house was repossessed for a debt of 2,000. The house took 18 months to sell andthen it was sold for £12,000. Shortfall is now £25,000 with everything added on. I had no contact from Morgage company for approx 2 years after, then they started to write asking for the £25,000. I ignored all letters. They can chase you for 12 years. but if they have not contacted you and you don't acknowledge the debt for 6 years they can't proceed any further. The law has changed now and they only have 6 years to contact you, I think that is for mortgages taken out after 2004 They send people to my home demanding money and then this summer I received an attachment of earnings. I have decided to declare BR. Hope this helps also take a look at this page
http://www.insolvencyhelpline.co.uk/debt_special_situations/mortgage-shortfalls-debt.php |
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Melanie.n
forum expert
United Kingdom
1282 Posts |
Posted - 20 November 2009 : 17:39:35
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Hi there
as Housing has already stated above, as the debt relates to a shortfall from a property sale the mortgagee has the right to pursue the capital element of the shortfall for a period of 12 years.
May i suggest that your mother seeks advice again from the CAB who may be able to help her on the grounds of undue influence and if as stated she was/is ill then their may be grounds for requesting the debt to be written off but this is NOT guaranteed, and most definately something she needs to explore with the CAB with all relevant paperwork provided so that they can see the whole picture and advise accordingly ( which I am sorry but am unable to do so via this forum)
Hope this helps
Melanie Nicholas
28 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
email me at melanienicholas@jonesgiles.co.uk
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joella68
Junior Member
United Kingdom
280 Posts |
Posted - 20 November 2009 : 17:57:48
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hi melanie, thanks for your reply, what does undue influence mean ? yes this is a very complicated case, and trying to find the correct help is very difficult..........she has been back to CAB ut as they helped her more than 6 years ago they no longer have any correspondence relating to what they did 6 years ago, so she is unable to get all the correct information from what happened /8 years ago
what cries put tom about all this is....... if they truly believe that the debt is still enforcable, then why in all these years have they not tried to take it to court ???????
i cant help feeling that they may be bluffing and using bullying tactics on this !
moving forward to new beginnings
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Melanie.n
forum expert
United Kingdom
1282 Posts |
Posted - 20 November 2009 : 18:16:07
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Hi there, from information i had received from a colleague by email you had intimated that your father had perhaps 'forced' your mother into the mortgage, and it is to this i made the comment 'undue influence.
I appreciate that the CAB does not have info going back that far, but your mother could be dealth with 'afresh' by the CAB and assistance given to the present situation, ignoring all previous info provided. It is too difficult a scenario for me to give exact advice as someone would need to see relevant paperwork etc before such advice could be given, which is why is suggested the CAB as they would sort this for your mother at no cost.
Unfoturnately the law stands that they have 12 years in which to chase for this debt, and as such are quite within their rights to deo so from a legal perspective, but i do think that perhaps with some assistance from the CAB common sense may prevail. Sorry i could not help further. Melanie
Melanie Nicholas
28 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
email me at melanienicholas@jonesgiles.co.uk
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Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 20 November 2009 : 18:59:46
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Hello again Jo,
I agree with Melanie, the CAB are liklely to be in a position to assist here.
The term "Undue influence"means (and I apologise for the jargon:-
Equity gives relief on the ground of undue influence where an agreement has been obtained by certain kinds of improper pressure which were thought not to amount to duress at common law because no element of violence to the person was involved" (GH Treitel, The Law of Contract).
A person who has been induced to enter into a transaction (eg, a gift, contract or guarantee) by the undue influence of another (the wrongdoer) is entitled to set that transaction aside as against the wrongdoer. The effect of undue influence, like duress, is to make the contract voidable.
Such undue influence is either actual or presumed. In Barclays Bank v O'Brien [1993] 4 All ER 417, the House of Lords adopted the following classification of undue influence chosen by the Court of Appeal in BCCI v Aboody [1989] 1 QB 923:
It is worth your mother - maybe accompanied by you go back to the CAB and I am sure they will do their very best to assist. The CAB are a well respected organisation and have the necessary credibility to advocate/advise.
I wish you all the best - be strong - post back with the CABs response please and I am sure someone will come to your aid, Regards, Richard
"There are no problems - only solutions..." |
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joella68
Junior Member
United Kingdom
280 Posts |
Posted - 20 November 2009 : 19:06:38
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thanks again melanie for your help, i am very grateful, yes i agree that this is such a complex case that she really needs to sit with perhaps CAB, and really get this sorted, i gave a brief summary earlier and yes there is so much more to the situation, so again thanks.
moving forward to new beginnings
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joella68
Junior Member
United Kingdom
280 Posts |
Posted - 20 November 2009 : 19:20:55
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richard, thanks for yor help too, i am trying to help my mum out the best i can, she is a frail woman of 6 1/2 stone with a very nervous disposition due to years of mental abuse from my father( thankfully they are now divorced ) i fear for her health and state of mind at this time, she is so scared and feels that although she understands by law she MAY be responsible for this debt, she has paid for it over the years finacally and mentally via the life she had with my dad and how he ripped her off over the years,she would be way too scared to drag him in to this mess, anyway enough said on that level, dont want to get into a slanging match here lol, she is 64 and desparate to retire.
anyway thanks again.
moving forward to new beginnings
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Topic |
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statute barred.......does anyone know anything abo
