Advice urgently needed

[callmejulie]

I presently live on the Isle of Man and, with my husband took out a personal loan (secured on our home) from a Manx company.

 

This company folded and never re-opened again on the island. The loan hasn't been paid for years (I got an order for my ex to pay it when we divorced as I discovered he had used it for a deposit for a new flat for him and his girlfriend) and I am being threatened by a solicitor in Newcastle to make a payment on the arrears which now stand at over 15k.

 

From what I understand they can't get an order to get me out of the house (where I live alone with my 3 children) or I am guessing they would have done it a while back.

 

I have heard whispers that, as they now have no registered office on the island, that I am protected by manx law but have no idea if that is true.

 

My ex husband has disappeared off the face of the planet and I have no way of contacting him.

 

Does anybody know if the debt will be eventually written off if they can't recover it?

 

Any advice would be appreciated as I really have no idea at all where I stand in this.

 

Thanks to anyone who actually reads this

[cerberusalert]

How long ago since any payment was made & was there a court judgement?

[cerberusalert]

I've just done some quick research;

 

Manx law has distinct system of insular binding precedent based on cases brought before the Island's courts. Precedents in the English legal system, when relevant and applicable, are persuasive upon the Manx courts. The supreme court for the Isle of Man is the Judicial Committee of the Privy Council. The Isle's traditional local appellate court is the Staff of Government Division which has only two judges, titled deemsters, whose decisions are joined to the original trial decision. They almost always have a majority, if either deemster agrees with the trial Judge.

 

 

In addition to precedent, the laws of the Island develop through statute from two main sources: Acts of Tynwald (known as insular legislation) and Acts of the Imperial Parliament in Westminster.

 

So given the above it seems as if the UK Statute of Limitations would apply in your case. If you have made no payment for a period of six years or written acknowledgement of the debt it would be Statute Barred and the solicitor cannot take any legal enforcement.

[callmejulie]

It has been about two years that no payments have been made by my ex husband.

 

The only court order made by the Deemster was against my ex for him to make said payments. Never have the loan company (which incidentally was CityFinancial) approached the courts for any kind of order to force sale of the property.

 

We presently only have 1 Deemster who could make an order for the house to be sold and (lucky for me) it is the same one who made the order against the ex. He said openly that he wouldn't condone any application from the loan company ...... he had ordered the ex to pay it but CityFinancial have never even tried their luck in the Manx courts. Its that what I find strange???

 

So six years from when the loan was defaulted on and it won't be pursued - did I understand right?

 

Thanks

[cerberusalert]

It is unlikely that CityFinancial would attempt anything through the Manx court & given what the Deemster previously said they'd fail in any case. They cannot take enforcement outside the jurisdiction of Manx so it seems as if they are just sabre rattling.

 

I take it that your husband no longer has any financial interest in your home? unless the loan was in joint names they have no claim anyway.

 

So six years from when the loan was defaulted on and it won't be pursued

No, six years from the last payment made or written acknowledgement of the debt, but that's academic now as the Deemster has ordered your ex to pay in effect re-writing any previous agreement and absolving you from the debt.

[callmejulie]

He doesn't have any financial interest in the house now as all his equity was transferred into my name in the divorce. The deeds are now registered in my sole name. That opens up another issue though... I assumed that the 'charge' from CityFinancial would remain on the deeds. From what you said maybe that isn't the case?

 

Crikey my advocate is useless. I have got more sound advice from you in the 2 years I have used her!!

 

Far as I know the debt is no longer with cti but with an solicitors in newcastle. Is it worth me not even requesting statements from them each year end?? I don't want this to extend the 'six year' rule...

 

Thanks again you have been very helpful.

[callmejulie]

He doesn't have any financial interest in the house now as all his equity was transferred into my name in the divorce. The deeds are now registered in my sole name. That opens up another issue though... I assumed that the 'charge' from CityFinancial would remain on the deeds. From what you said maybe that isn't the case?

 

Crikey my advocate is useless. I have got more sound advice from you in the 2 years I have used her!!

 

Far as I know the debt is no longer with cti but with an solicitors in newcastle. Is it worth me not even requesting statements from them each year end?? I don't want this to extend the 'six year' rule...

 

Thanks again you have been very helpful.

[cerberusalert]

Was the initial loan in joint names or solely his?

[cerberusalert]

You can check online http://www.landsearch.net/fees_iom.asp to see if there's a charging order, the fee is £12.

[callmejulie]

the loan was taken out in joint names. the house, at the time, was in joint names.

 

the court ordered in october 2008 that the equity in the house be transferred to me but, due to my ex's reluctance to sign, the new deeds were only recently lodged with the IOM Registry.

 

thanks for the link - i will check that out.

[cerberusalert]

How did cti manage to obtain a Charging Order... they would have needed to apply to the courts in the IOM & you should have received court papers in order to defend.

 

If there isn't a CO registered the solicitor is definitely urinating into the wind with this. If there is one they would have to apply to the Manx court for permission to take further enforcement action & given the previous ruling by the Deemster they're doomed to failure in any case.

[callmejulie]

duh... sorry not sure I understand. What is a Charging Order and why would Cti need one of those?

 

The loan was signed in 2008 and I think the only paperwork we were given was the Loan Agreement. My ex scarpered within months of it being signed so not sure if he got anything that he took with him..

 

Oh this is all so complicated I feel like a blindfolded man with amputated arms!!

 

I really appreciate your help though.... As I said I can only immagine there is a reason behind Cti not applying to the courts to force me to sell the house - I just don't know what it could possible be. We are not talking about a small loan here so they have plenty of incentive to come after me. I'm more than happy to keep me head down while 6 years pass if there is a chance that they won't make any further attempts to recover after that time. I'm just going crazy with worry about it all.... been left on my own with 3 kids. I'm sure people on here have it worse than me but its a pretty scary predicament.

 

Thanks again

[cerberusalert]

Re your post #6 when you mentioned a 'Charge' on your house... the term is Charging Order. To get one they would need to apply for it to a court otherwise the Land Registry will not record it. Without it being registered they could not apply for the sale of the property & even if they did it would be unlikely that they'd win. Basically all a charging order does is place the creditor towards the top of the queue if you decided to sell. If there was any equity left after the sale the would be in front of any other creditors.

[callmejulie]

Ah, yes. That makes sense. From memory it was all done at the time of the loan by a Conveyancing Company that CTI put forward. There definitely was a 'charge' made against the house when the joint loan was secured against the home owned in joint names. Im not sure now, however, the house being in my sole name....if it has carried the joint 'charge' with it when it was put in my name. Knowing my luck it probably has but not sure how to check.

 

Even though they have the charge they have never taken steps to recover their loan through the courts by forcing me to sell the property.

[cerberusalert]

Even though they have the charge they have never taken steps to recover their loan through the courts by forcing me to sell the property.

I doubt if they'll try anyway.

 

It would be best to check with the Land Registry to see if there is one listed, if there is you can take steps to get it removed in view of the court order made by the Deemster.

 

Do you have a copy of the Deemster's order? If not it would be prudent to obtain a copy from the court.

[callmejulie]

Yes, I have a copy of the order... I even laminated it lol.

 

I'm just waiting now to see what happens - if they remove the charge or even how it will impact on the mortgage which (even though I have paid for the past 5 years) is still in joint names. I am hoping now the deeds are in my name the bank will be obliged to put the mortgage in my name but no idea what will happen.

 

It's been a huge learning curve and I continue to learn new things every day!!

 

I can't thank you enough for all your help.

 

THANKS!!

[cerberusalert]

I would send a copy of that court order emphasizing the Deemster's judgement in regards to your ex being ordered to pay Citi & emphasize that it supersedes any previous agreement. Tell them that if they wish to challenge that judgement you'll look forward to seeing them in a Manx court where they will be liable for your costs.

[callmejulie]

Thank you so much. I will do that tomorrow and let you know how I get on!

 

You have been so helpful and I will make a donation to the site as soon as payday arrives

[cerberusalert]

If you make a donation only make one that you can realistically afford.