Joint Paragon Loan but Ex defaulted on his share of the instalments

[Loz84]

Hi I have a securred Paragon loan jointly with my ex. The loan was taken out in 2002 we split in early 2010 and he has walked away from paying anything towards the mortgage and the loan. I have continued to pay the mortgage in full and half the monthly loan instalments by standing order as well as topping up these payments (so far I have paid an extra £4116.000 to cover his share) and we are just under two months in arrears ( i pay enough not to go over the two months to avoid a default notice). He has now been made bankrupt as he has chosen to be unemployed (to do the Knowledge). Our two children (13 and 19) and I live in the house and I receive no maintennce for my youngest. We have one year from when his bankruptcy started (Oct 2011) to either buy him out or sell up. We would also have been entitled to £10K back from Paragon via PPI but due to the arrears no longer be entitled to it. As you can imagine I have many questions !

Do I have a PPI claim? / If the house has to be sold can I get a larger portion of the profits due to the extra loan ? / We dont want to move but not sure if I could afford to buy him out due to the equity and how much he owes (madness as to it would cost me a lot more to rent!) Could I add the £4K to his bankruptcy? / Is there anyway I could use this to help us stay in the house all suggestions and advice would be greatfully received thanks

[sir_gilmour]

Hi Loz84

Welcome to The Consumer Action Group.

 

 

I am just letting you know that as you haven't had any replies to your post yet, it might be better if you post your message again in an appropriate sub-forum. You will get lots of help there.

 

Also take some time to read around the forum and get used to the layout. It is a big forum and takes a lot of getting used to.

 

 

Once you start to find your way, you will soon realise that it is fairly easy to get round and to get the help you need.

 

It can be bit confusing at first.

[Sniktar]

Your question is VERY complex but:Take FREE advice from an agency such as CAB - who may be able to refer you to free legal advice.PPI claim:If you both signed, contact the PPI insurer to see. If you do not ask - there is no possibility of the answer being yes, you can claim. Adding to his bankrupcty may be possible BUT, if debt is in joint names - that will only clear HIS debt, as you are both liable for the full amount.Only your mortgage lender can advise you of the options availble with regard to staying in the house but legaly they DO have to exercise ALL options. If you do not have a huge amount of equity, your local council may be able to help within the Mortgage Rescue Scheme.

[Loz84]

Thanx foryour reply but am at a loss as to where i should move it too and how?? Am very new to this!

[maroondevo52]

Hi, Loz84.

 

I have moved this thread to the appropriate Forum.

 

Regards.

 

Scott.

[Loz84]

Thank you

[maroondevo52]

I've unapproved the other thread you started, best sticking to one

[National Debtline]

Hello there, sorry to learn about the situation. We shall try and answer a few more of your outstanding questions:

We would also have been entitled to £10K back from Paragon via PPI but due to the arrears no longer be entitled to it.

If you believe the PPI was missold the arrears wouldn't make any difference in relation to your ability to try and reclaim it. We cannot tell you if you have a prospect of success based upon the information you've provided; there is a wealth of information on this site that should help you decide if you have the ability to reclaim.

 

If there is equity in the property it is likely that the Official Receiver/Trustee in bankruptcy will want to realise this money so that your ex-partner's share can be paid in to the bankruptcy, have you been notified of this at all? As far as challenging the share of the property based upon the extra payments you have made this could require some specialist legal advice. Do you have a solicitor? You may be able to seek some help, for free, via your local law centre:

 

http://www.lawcentres.org.uk/cgi/member_publisher/ldisplay.cgi?centres

 

How much did you borrow from Paragon? There could be a few options available to you, also do you know when the loan was taken out?

 

A secured loan doesn't get included within a bankruptcy, both of you are still be liable to pay it; you can read more about mortgages/secured loans via our self-help pack:

 

http://www.nationaldebtline.co.uk/england_wales/debt_advice.php#4

 

 

 

Best wishes,

 

National Debtline.

Edited March 9, 2012 by National Debtline

[Loz84]

THanks National Debt Helpline - i am currently getting all the figures together but Paragon are being a bit slow on giving me a redemption figure! As soon as I have it I will let you know.Regards Loz

[Loz84]

Natinal Debtline I now have the figures can you tell me what my options are please?

[National Debtline]

Natinal Debtline I now have the figures can you tell me what my options are please?

 

Hello there, sorry for the time taken to get back to you. Do you know how much was borrowed when you took the loan originally?