What Ancillary Relief for? Ex's Death brings me 30k debt.

[forrighteous]

I post a Thread earlier Need help with the bankrupt's (deceased ) secured debt

 

I would like to add some background information to it, hope some one can guide me to seek the righteousness.

 

The bankrupt (deceased) is my extra husband. When we divorced, the court ordered him to release me from the mortgage and transfer the property to his sole name without paying any monies to me. due to he had no income, the mortgage lender refused the transfer to set me free.

 

The Ancillary relief was a clean break in life and on death. Who can believe extra's death bring me £30,000 debt? Where to seek for righteousness? all the debt are not my responsibility originally.

 

After he went bankrupt and died, the mortgage lender traced me, I had to take over the house and rent it out to pay the mortgage. If I let the mortgage lender repossess the house, they will trace me for the shortfall.

 

I did not want the house at all, the house is negative equity .

 

The creditors are entitle for the money for the house, but the house is negative value. What should I do? I am in the situation that I can not sell it or pay for the debt.

[caledfwlch]

I actually thought, if a Court ordered a complete break with an order during divorce, the Mortgage company cannot oppose this.

 

The Court Order is supposed to specifically protect you against for example your ex who has the house stopping paying their mortgage and landing you will arrears.

 

This sounds a little complicated, and I wonder if you should report your own post to the Site Team asking for help?

[sillygirl1]

I'd go back to the people who organised his bankruptcy, these are not your debts and the mortgage company is being rather economical with facts.

 

Get a complaint in straight away to the FOS and the Council of Mortgage Lenders.

[forrighteous]

I have got some advice from different resources. The Mortgage Lender is not tied to anything happaned between the joint debtor. And the court has no power to rellocate the debt.

 

The worst is that I have to pay my Ex's other creditors who made restriction on the propery againt him, not me. One of them is the Legal aid. The legal aid funded my Ex for hiring Barrister to agaisnt me and convinced the judge that he was able to pay the mortgage. Now, It ends up I have to pay the legal aid for him, which is over £6000.

 

Where is the righteousness in our law?

[sillygirl1]

No, get onto the Official Reciever, they are the only person who can give you the proper advice now, most solicitors won't be able to deal with the complexities of this.

 

Your ex is dead and presumably has no estate to claim against, they CANNOT automatically transfer any rights to you.

 

If necessary go to the court and get an emergency injunction against the mortgage company until your ex's estate is settled.

 

I only know a bit about this as it happened recently to a friend, they thought they would have to pay their ex's legal aid bill but were incorrectly advised as HE bought the case, not HER.

[forrighteous]

It is not only solicitors are not reliable. Even the Court's Order is not reliable.

 

I have dicussed with my solicitor. He told me that it is my responsibility for my the deceased's debt. He said when I purcashed the bankrupt's interest, I purchased his debt as well. He simply advised me to negotiate with the creditors to settle down the debt. I am not conviced.

I went back to the Official Receiver. He said they can not do any thing to secured debt. It is my own problem to deal with. I found out they are right. Secured debt can not be wiped off when you bankrupt.

 

The mortgage lender has the right to protect their interest. They can refuse to transfer the mortgae from joint name to sole name if they are not confident with the applicant.

 

It seems it is nobody's fault. it is the law's fault. The court made a Justice which it is impossible to achieve. And I became the victim.

[abc123def]

Secured debt is wiped off when you go bankrupt or more accurately, when you are discharged from bankruptcy but it is only your own personal sole debt that is wiped. Had your ex been discharged from their bankruptcy? I am assuming not and that though they had been declared bankrupt, they had not been discharged which would mean that all their debt declared, secured or not was/is still live and therefore the bankruptcy has got rid of nothing not even for them.

 

Any debt that bankruptcy clears is only for the person who has declared bankruptcy and then has their debts cleared, so if something is a joint debt and there remains one person still liable, then the creditor will chase them instead for the whole debt which has happened to you. That is why when someone goes bankrupt or considers it they need to seek legal advice as to the consequences, any joint debt adds complications such as you describe and often either both should go bankrupt, or ways should be found to make the debt into one name BEFORE bankruptcy. Though the court ordered your ex to take on the mortgage solely, they can't MAKE the lendor release you from the mortgage so the court order is worth little in reality if there is no way the respondant can fulfill the court order despite their efforts to.

 

It seems as if your ex was badly or not advised legally before bankruptcy was applied for, and it seems you were badly or not advised legally before you bought the house share from the OR and there is a resulting mess. Really sorry you are going through this, I think you may have to decide to cut your losses with the house, let it be reposessed and work out ways if you can or can't make up any shortfall.

[forrighteous]

Thank you, abc123def. Appriciate your good point. My Ex died before he could be discharged. Does it mean there is no chance that the secured debt could be wiped off? Even after a few years?

 

At the moment, i rent the property out to keep the mortgage payment, I think I can manage the mortgage payment. The problem is my extra's sole debt, nearly 10,000

[abc123def]

Unfortunately as the debt was joint and your ex has died, that means the debt is now yours alone and its you that will be persued for it. You could let the house be repossessed and then you could in theory make an offer of payment of a sum towards the debt you owe which they may consider. However I would expect they would want to see what your assets and income are, because if they feel they are able to claim back all they are owed through court they may well want to do so. They tend to accept lower offers as a full and final settlement only when they don't think they would be successful in getting back the total amount otherwise.

[abc123def]

I have heard from someone that if you stop paying towards a debt, then after 6 years it dies if they have not managed to get money from you in that time. I'm not sure if that is true but you can email Phil Stone for advice for this Google his site search for "Phil Stone Insolvency" and you'll find it.

[stu007]

Hi

 

Have to agree with abc

 

If the Secured Debt was in joint names and one of the joint party is then made Bankrupt the Owners of the Secured Debt can seek recovery of that debt from the other party in full.

 

I would also advise seeking advice from CAB, Shelter or legal advice.