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Help! 2K debt turned 30K by insolvency sold now threat of possession


Adrian Martin
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2K debt turned 30K by insolvency solicitors now threat of possession

 

Hi,

 

I desperately need some legal advice and I cannot afford a solicitor. A small debt has turned into a massive charge on my house by a firm of solicitors and they are trying to possess my house for what was a £2k debt but their turned it into £30k in less than a year. Both myself and my wife are mental health patients and have a child too. Scared to death we are. Please share or help directly if you can. We need a good lawyer to help us out of this nightmare...

 

I can provide more details of course but here is in brief:

 

- Lloyds tsb credit card debt more than 7 years old

- my wife made bankrupt without us even knowing about any court

- we are both mental health patients, severe anxiety and major depression, in 40s and active but anxiety blocks decision making and acting in time rather we suffer in silence and regret...

- We have one child,

- I've been told we can't get legal help in spite of not having a high income collectively (

- Insolvency sols have threatened to possess the house and it is just too much to bear, really...

 

Any help or advice would be much appreciated.

Edited by Adrian Martin
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So theyve turned a 2k CC debt into a 30k charging order?

 

Can you give a breakdown of everything thats happened so far and the breakdown of how the amount is accrued?

 

Also, please name names. WHo is the DCA that lloyds sold the debt to, and who is the solicitor.

Any advice i give is my own and is based solely on personal experience. If in any doubt about a situation , please contact a certified legal representative or debt counsellor..

 

 

If my advice helps you, click the star icon at the bottom of my post and feel free to say thanks

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Hello and welcome to CAG

 

OK, we realise that this is an extremely distressing and upsetting situation for you and your dear family; however, you have come to the right place and therefore please take some comfort from the fact that you are no longer alone now and we will endeavour to help you through this period in your life.

 

 

In order to help you with proper/practical legal advice/help and support you in this matter, we need you to provide all the details of this matter and that involves you providing a chronology of the series of events that have taken place from the very beginning of this matter to this present day.

 

 

For instance, as regards the £2k debt, was this accrued under a credit agreement pursuant to Consumer Credit Act 1974 (as amended)?

 

 

Was there a dispute on this agreement/account? If so, please provide details of the dispute.

 

 

Did the creditor serve a valid default notice on you? Please provide details of this.

 

 

Was there any mis-sold ppi under the agreement? Again, please provide details of this.

 

 

Was the agreement assigned (sold) to another party/creditor?

 

 

Did you receive a Notice of Assignment pursuant to s.136 of the Law of Property Act 1925?

 

 

Did you receive a Statutory Demand? If yes, were the details of the debt claimed therein correct?

 

 

What Court action(s) has taken place and what Order(s) have been made against you?

 

 

The above will give you an example of the type of details we need. We need to have full knowledge as to all the circumstances of your case.

 

 

Once you have provided these details, we will then be in a position to pool all our resources together and post advice/help and support for you as regards the best way forward to deal with this matter.

 

 

Hang on in there and post your reply as soon as possible because time is of the essence.

 

Here these words and please do not lose sight of the fact said to you above; you and your dear family are no longer alone in this matter, you have many, many good friends here and we will hold your hand all the way through this and we will endeavour to balance everything out for you and your family. Tell your dear wife and your dear child of these facts.

 

 

Thank you.

 

 

ibberty bibberty

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Thank you all so much. I feel a lot more powerful since I started this thread and am no longer sitting in a corner grieving.

 

Here comes a little history:

 

Original debt was on a Lloyds tsb credit card. It was then passed over to several DCAs and finally 1st Credit. Total debt at that stage was less than £2200.

They made my wife bankrupt in July 2014. We were not served any notice for a court.

Mazars LLP took over, placed a charge on our property and their last letter is showing a total balance of over £27,000 to be cleared by 9 Sept otherwise they will instruct their soles to apply for an Order for Possession and Sale with no further reference.

 

I'm shaking as I'm typing these words...

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Your wife should make an official request to the court that dealt with the bankruptcy for a copy of the paperwork they had. There is a civil procedure rule for this request and the fee use to be about £11 to cover admin costs e.g photocopying.

 

From the paperwork, you might learn information that will be helpful. There should be a statement from the process server as to how they delivered bankruptcy paperwork. Then you can see whether this was compliant with rules or not.

 

That is a start. But you need to start ASAP, so you can be in a position to ask the court to look at this again.

We could do with some help from you.

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Mazars have dug into all our finances, contacting any creditor even those already agreed with payment plans and receiving monthly payments from us.

They have included everything on their own invoice and snowballed the small debts into massive sum which is way out of proportion now.

 

Trustee's costs of admin £7200, other Trustee's costs £4500, Secretary of State fee £6100, and going up.

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Apply to the court to appeal the bankruptcy.

 

You need the paperwork from the court to see how they made her bankrupt without knowing. A process server should have personally served on her the bankruptcy petition and if this was not possible they should have written a statement explaining how it was served.

 

See if you can get any local legal help. Citizens Advice may have contact with Solicitors who may help with some free time. There are pro bono (free) legal advice centres around the country, where you might strike lucky and get some free help.

We could do with some help from you.

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We need more details about the original debt please, and the series of events that took place relating to this before your wife was made bankrupt.

 

 

Was there any mis-sold ppi on the credit agreement entered in to by your wife?

 

 

What was the original amount of credit provided on the card?

 

 

Did the original creditor (Lloyds) serve a valid default notice on your wife?

 

 

As regards making your wife bankrupt in July 2014, did the creditor serve a statutory demand on your wife?

 

 

When did you first receive notice from the Court of the bankruptcy?

 

 

Please check and double check all your paperwork relating to this matter and let us know what you have, because if your wife can show that any default notice served is invalid for reason of contravention of s.88 of the Consumer Credit Act 1974 (as amended), such evidence would invalidate any statutory demand and petition made thereon by the creditor which in turn will present the Court with irresistible grounds to annul the bankruptcy.

 

 

Further, if there was mis-sold ppi on the credit card, this would mean that the amount stated in any statutory demand would be inaccurate because the mis-sold ppi must be repaid to your wife and this would possibly mean that Lloyds owed your wife more money than their claimed £2,200.00.

 

 

Send an email to the trustee/solicitors and put them on notice that your wife intends to make an application under s.282(1) of the Insolvency Act 1986 for an order to annul the bankruptcy on grounds of serious procedural error and violation of her right under art.6.1 ECHR. Ask them if they have any objection to this. Tell us what their response is to this.

 

 

Have you made any offer to repay the trustee by way of monthly payments?

 

 

 

Section 282. Court's power to annul bankruptcy order

(1) The court may annul a bankruptcy order if it at any time appears to the court—

(a) that, on any grounds existing at the time the order was made, the order ought not to have been made, or

(b) that, to the extent required by the rules, the bankruptcy debts and the expenses of the bankruptcy have all, since the making of the order, been either paid or secured for to the satisfaction of the court.

 

 

Further, take a look at s.285 of the 1986 Act (below), because your wife has a right to oppose any possession and forced sale of your home and the Court has the power to stay any action against your home.

 

 

 

Section 285. Restriction on proceedings and remedies

(1) At any time when proceedings on a bankruptcy petition are pending or an individual has been adjudged bankrupt the court may stay any action, execution or other legal process against the property or person of the debtor or, as the case may be, of the bankrupt.

(2) Any court in which proceedings are pending against any individual may, on proof that a bankruptcy petition has been presented in respect of that individual or that he is an undischarged bankrupt, either stay the proceedings or allow them to continue on such terms as it thinks fit.

 

 

 

OK, come back and update us on the above please, asap.

 

 

ibberty bibberty

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Hi,

 

And many thanks for your support.

 

I'm not in the UK at the moment. My wife is receiving therapy and counselling here, as she feels better with close family support and our GP has knowledge of this and has approved it. We will be back next week - I hope.

 

Mazars have rejected our monthly payment even before seeing anything and have asked for a minimum £1000 a month for the next 3 years otherwise they will go ahead with Possession Order Request in the next 7 days. They are aware of our mental health state, and I have also offered them medical notes.

 

To answer your questions:

 

1. PPI: Not sure. I need to dig into the history and find out.

2. Credit: £2000

3. Default: I believe yes.

4. Statutory Demand: I do not know.

5. First Notice: Announcement that she had been made bankrupt.

6. All paperwork to double-check: I believe there is a lot missing. Should I send Subject Access Requests (Data Protection Act 1998) to all of them so that I can have a full picture of what has happened?

7. Payment Offer: Yes I made an offer but they want to receive a minimum of £1000 for the next 36 months! Otherwise they will instruct their solicitors to apply for a Possession Order on in the next 7 days.

 

I wonder if they can actually go for a Possession Order so quickly and easily, and what we should do to stop that?

Can we communicate with the Court whilst abroad? Should I email the Court or put it in writing and send everything via DHL? What is the best move now?

I can provide full medical file, notes and doctors support if/when required.

 

Your help and advice is much appreciated as ever.

 

AM

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If you don't know when you will be back in the UK, think you should contact the official receiver appointed to advise them of your situation e.g suffering mental health and abroad. Would have thought they had some duty in regard to advising the court and making sure things are dealt with properly.

 

If you are not back next week, you should see if a Solicitor can act for you. Is there a process for registering an intention to appeal, putting matters on hold ?

 

There is no need for creditors to rush to take possession, but they won't let it drag on, as they have to realise the value of property within 3 years of bankruptcy.

We could do with some help from you.

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We intend to return next week. Can I communicate with the Court and request/lodge a set aside/appeal remotely?

 

Thanks.

 

You would have to make a formal application giving reasons and pay the relevant fee. You appear to lack information, so i am not sure how you do this. You don't want to rush at it making a mistake. There is another case on here where someone appealed and did not get it right. They are still struggling on, going to the high court to try to overturn the bankruptcy. Meanwhile the trustee in bankruptcy continues to add more fees.

 

I think you should inform the official receiver of your situation and arrange to see a Solicitors that handles insolvency cases on your return to thr UK.

We could do with some help from you.

PLEASE HELP US TO KEEP THIS SITE RUNNING EVERY POUND DONATED WILL HELP US TO KEEP HELPING OTHERS

 

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You would have to make a formal application giving reasons and pay the relevant fee. You appear to lack information, so i am not sure how you do this. You don't want to rush at it making a mistake. There is another case on here where someone appealed and did not get it right. They are still struggling on, going to the high court to try to overturn the bankruptcy. Meanwhile the trustee in bankruptcy continues to add more fees.

 

I think you should inform the official receiver of your situation and arrange to see a Solicitors that handles insolvency cases on your return to thr UK.

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?401203&p=4637506#post4637506

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Yes that is the other thread referred to.. Worth a read, to see how much trustees in bankruptcy can add, while the appeals process is ongoing.

We could do with some help from you.

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OK, thank you for the above information.

 

 

You need to establish if a statutory demand (“SD”) was served on your wife and if so, by what method? Send the solicitors an email and request they confirm if a SD was served and for proof of service of the same.

 

 

Do you have a copy of the default notice (“DN”)? If yes, please post up the contents set out therein minus personal details and the date of the notice. We need these details to see if we can establish whether or not the DN was valid.

 

 

Did you ever receive a Notice of Assignment (“NOA”) (sale) of the debt/credit card pursuant to s.136 Law of Property Act?

 

 

A Subject Access Request is a good idea; however, it will take around 40 days before you are in receipt of the information sought.

 

 

 

What amount of monthly payment did you offer and what reasons were given for rejecting your offer?

 

 

If the solicitors make the application for a possession order, you can respond to that with an application (on form N244) for a stay pursuant to s.285 of the 1986 Act (as above, in my previous posts) pending your investigation to establish as to whether or not the creditor had standing and/or entitlement to enforce the credit agreement against your wife, it is your belief that he did not, further, you believe that the creditor did not serve a SD on you and you are trying to obtain evidence for this Court to prove all of the same.

 

 

With your application you will need to file a witness statement (“WS”) with it and a copy of your medical records/documents proving your ill-health and ask your GP to write a brief letter to explain that both before the bankruptcy and thereafter, your wife was unable to make rational decisions as to her financial affairs and if the creditor did serve a SD (which is not admitted), your wife was not well enough to deal with it. The GP’s letter should be included with your application.

 

 

See if you can find the DN and also the NOA and post back here.

 

 

If we can establish that the DN is invalid, you will then have irresistible grounds to apply to have the bankruptcy annulled under s.282(1)(a) of the Insolvency Act 1986, however, please be aware that if this should be the case, the Court may order your wife to still pay the receiver’s costs etc.etc.

 

 

If we can establish non-service of the SD, then, again, the bankruptcy can be annulled, however, the Court may direct the creditor to serve a new SD and if that should be the case, then we will deal with it and try to have it dismissed or submit a counterclaim based on mis-sold ppi to reduce the amount below the £750.00 mark (if there was any ppi on the credit agreement, it is more likely than not that there was ppi on it). So it is very important that you methodically and meticulously go through all your own paperwork relating to this matter to see what evidence turns up that can be used in your favour.

 

 

 

ibberty bibberty

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  • 2 weeks later...

Hello friends,

 

Thank you for your support.

Just a quick update:

 

1. I managed to get an extension of 14 days from Mazars for a proposal after I protested their intention to possess our shelter as they were taking advantage of two people suffering from mental health problems.

2. I sent them our budget forecast showing what we can afford to pay towards all debts including our mortgage arrears.

3. I asked them to send me copies of the SD and DN if they are aware of and in possession of any copies.

4. I intend to write to all mental health charities in the UK and ask for their support.

5. Our GP has shown massive support as well in case medical notes/records are required.

 

So I guess our next step will be to prepare for a request to the Court to consider annulment, is that correct?

We will need your support in every step of the way, and words fail to tell how pleased and thankful we are.

 

Yours,

 

Adrian and Mrs.

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  • 1 month later...

No expert on this. Provide a bit more info, so people can suggest actions you might take.

 

You should get official legal advice if you can, from a local Solicitors that handles these issues.

We could do with some help from you.

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 Have we helped you ...?         Please Donate button to the Consumer Action Group

 

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