But it’s especially frustrating if your debt is several years old. Property Used as Collateral Can Be Repossessed . People complain that: they ’ re confused about why they still owe money, given that their house has been sold; their house was sold for too little – so the shortfall is the mortgage company’s fault Mortgage lenders have … If your mortgage lender is chasing you for a debt left over when your house was repossessed or sold the situation is rather different. For £655 Once I found out what was going on I contacted the court it was issued by and they said it was out of their hand, u was set upon by the ball offs and forced to make a payment, of £100! After your house has been repossessed, you may still have a debt to pay regarding your mortgage (known as Shortfall debt). But the house was repossessed earlier this year and sold at auction last week for £92,000. Check if your debt is covered by Payment Protection Insurance. This article explains what happens after your house is repossessed, including how it can impact you getting a mortgage and your credit ratings. A UK debt collector will normally pass the case to a local Canadian debt collection company and they will contact you to demand payment. payment on lien against house my mother transferred her home to me prior to her death. It is a limited company registered in England and Wales (company no:2757055). Foundation for Credit Counselling Wade House, Merrion Centre, Leeds, LS2 8NG trading as StepChange Debt Charity and StepChange Debt Charity Scotland. ... untill I had debt collectors chasing me in late 2013! Contingent debt is a debt you are potentially liable for on the date of your bankruptcy but which has not yet crystalised (for example a potential mortgage or secured debt shortfall). The information you have been given by the Official Receiver is correct. We had our house repossessed in Feb 1994 (for being a measly £1,000 in arrears). Craig, who now has a £30,000 debt and is homeless, said: "I have no choice but to go bankrupt." If you have a mortgage, loan or credit debt, you might have Payment Protection Insurance (PPI). We handle complaints from people who are unhappy that they’re being asked to pay more money – the “ shortfall ” – after their home has been repossessed and sold. The point of a Charging Order is to secure the debt against our home, putting the lender very near the front of the queue for any money made from the sale of the property. i have paid $13000.00 in four years on that loan. A registered charity no.1016630 and SC046263. These exceptions are discussed later un-der Exceptions. But if you do exclude debt that is canceled, forgiven, or discharged for less than the full amount of the debt as “can-celed debt.” Sometimes a debt, or part of a debt, that you don't have to pay isn't considered canceled debt. she had a 25000.00 lien against the house. In cases such as these, the debt will not become a Canadian debt-it is still an English debt and can be cleared by filing for bankruptcy from Canada in England. Sometimes a canceled debt may be exclu-ded from your income. Under section 382 of the insolvency act contingent debt is included in bankruptcy. If you do, the insurance company might cover your debt repayments if you fall ill, become unemployed or have an accident. Whether you have medical debt, credit card debt or unpaid student loans, getting calls or letters from debt collection companies can be frustrating. Again, a debt is “secured” if a specific piece of personal property (called "collateral") is used to guarantee repayment. House is repossessed, you might have Payment Protection Insurance Can impact you getting mortgage! Year and sold at auction last week for £92,000 credit ratings repossessed in Feb 1994 ( for a! Repayments if you fall ill, become unemployed or have an accident chasing me in late 2013 now... 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