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Clare
Clare, Solicitor
Category: Bankruptcy Law
Satisfied Customers: 34105
Experience:  I have been a solicitor in High Street Practice since 1985 with a wide general experience.
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I'm divorced and my ex wife and I had a shortfall with the

Resolved Question:

I'm divorced and my ex wife and I had a shortfall with the bank of @ £130k when our matrimonial home was sold. I am in negotiations with the bank to repay the shortfall. They asked for £400 per month from me for the remaining term of the mortage (22 years) and I offered £250 per month which seemed to be acceptable to the bank official I was dealing with last week. We have gone through all my income and outgoings and I can afford £250 per month. They were going to put the proposal to the credit team and get back to me. Subsequent to my discussions with the bank last week my ex wife has declared herslf bankrupt. I received a call from the bank this morning to tell me that my ex wife is now bankrupt and the full debt of £130k falls on me. They suggested that i should pay them £350 per month for the remaining term due to the bankrupcy of my ex. I said to them on the phone that I felt my offer of £250 was fair and that I should not be "penalised" due to the other party going bankrupt. I said to them if I went the same route as her they would get nothing. The bank official is taking this information back to the credit team and will get back to me. The original mortgage was £255k on a property costing £300k in 2007 with repayments of £1,300 per month. Our combined earnings at the time was £70k and we had other loans and credit card balances at that time.
Questions;
1. Did I over step the mark by "threatening" bankruptcy on my part? I'm a chartered accountant with my own firm and can't go bankrupt if I want to trade. I can afford £350 per month but would rather settle for my original offer of £250. Its basically my half of the shortfall paid over 22 years.
2. Do the bank have a case to answer to for irresponsible lending? If so would it be ok to say this to them? I don't want them to force me into bankrupcy. I don't have any other assets, savings or investments.
Thanks
Submitted: 2 years ago.
Category: Bankruptcy Law
Expert:  Clare replied 2 years ago.
Hi
Thank you for your question
My name is ***** ***** I shall do my best to help you
1. No it was a reasonable threat - it is factually correct if you did go bankrupt then they would lose it all. It is possible that they will work out that you cannot trade if you do - but they are not to know how close you are to the edge
2. This point is arguable - after all they could say that given your employment they were entitled to assume that you were capable of making your own assessment BUT it is still an accurate statement and one well worth making
Hold out at £250 if that is what you can comfortably afford
Please ask if you need further details
Clare
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