Tweet
Hi All,
Would really appreciate if someone could give me a little advice/help!..as this stuff is like a minefield.
I was made bankrupt over 6 years ago but at the time, it was agreed with the OR that because there wasnt any profit in the property, I would be allowed to keep my home, as long as I could keep up to date with mortgage payments. Sadly, 12 months after I defaulted on the mortgage and property was repossessed and the shortfall from the sale of the house became "unsecured" debt and was included in the Bankruptcy. As its been over 6 years, I am now completely clear from my bankruptcy but the Lender set the default date for the mortgage nearly 15months after the bankruptcy date. The Lender says it was secured debt and as such wasnt included in the original bankruptcy order.
In reading the "Information Commissioner's Office" Data protection technical Guidance notes(2007) it says:
(paragraph 14)
Long-term secured loans
If meaningful information is to be reported to credit referenceagencies there needs to be a consistent approach by lenders thatalso needs to take account of the practical problems they face. Thisis also necessary to treat all customers in this situation fairly.Consequently, a lender should file a default no later than six monthsafter the date of a successful court application to proceed withpossession unless
• the customer has made reasonable and agreed arrangements torepay,
• the lender can justify not filing a default on an exceptional basis.For example, the lender is fully informed of the circumstances andknows that payments will start again, or
• the loan has been included in a bankruptcy in which case thedefault should be filed in accordance with the guidance inparagraphs 47 – 48.
[paragraph 48]
Where a customer continues to pay a debt in line with the originalcontractual obligations, despite the debt being included in a bankruptcyor IVA ( including where the bankrupt agrees with Official Receiver thatpayments will continue), the lender would not be obliged to record theaccount as in default. If the customer stops payment at a later stage, thedefault recorded should show the date of the IVA or bankruptcy and thefact that it was settled only by IVA or bankruptcy
I guess my question is, has anyone had any experience with this, or anyone have more legal background that could confirm these guidelines above and whether the default date on a mortgage repossession can be backdated to the Bankruptcy order it was included in. I know the shortfall is unsecured debt and automatically covered but these guidance notes above seem to imply the default date should be backdated also.
Would appreciate any help before I contact the credit file company to dispute.
Many thanks
Would really appreciate if someone could give me a little advice/help!..as this stuff is like a minefield.
I was made bankrupt over 6 years ago but at the time, it was agreed with the OR that because there wasnt any profit in the property, I would be allowed to keep my home, as long as I could keep up to date with mortgage payments. Sadly, 12 months after I defaulted on the mortgage and property was repossessed and the shortfall from the sale of the house became "unsecured" debt and was included in the Bankruptcy. As its been over 6 years, I am now completely clear from my bankruptcy but the Lender set the default date for the mortgage nearly 15months after the bankruptcy date. The Lender says it was secured debt and as such wasnt included in the original bankruptcy order.
In reading the "Information Commissioner's Office" Data protection technical Guidance notes(2007) it says:
(paragraph 14)
Long-term secured loans
If meaningful information is to be reported to credit referenceagencies there needs to be a consistent approach by lenders thatalso needs to take account of the practical problems they face. Thisis also necessary to treat all customers in this situation fairly.Consequently, a lender should file a default no later than six monthsafter the date of a successful court application to proceed withpossession unless
• the customer has made reasonable and agreed arrangements torepay,
• the lender can justify not filing a default on an exceptional basis.For example, the lender is fully informed of the circumstances andknows that payments will start again, or
• the loan has been included in a bankruptcy in which case thedefault should be filed in accordance with the guidance inparagraphs 47 – 48.
[paragraph 48]
Where a customer continues to pay a debt in line with the originalcontractual obligations, despite the debt being included in a bankruptcyor IVA ( including where the bankrupt agrees with Official Receiver thatpayments will continue), the lender would not be obliged to record theaccount as in default. If the customer stops payment at a later stage, thedefault recorded should show the date of the IVA or bankruptcy and thefact that it was settled only by IVA or bankruptcy
I guess my question is, has anyone had any experience with this, or anyone have more legal background that could confirm these guidelines above and whether the default date on a mortgage repossession can be backdated to the Bankruptcy order it was included in. I know the shortfall is unsecured debt and automatically covered but these guidance notes above seem to imply the default date should be backdated also.
Would appreciate any help before I contact the credit file company to dispute.
Many thanks
Comment