How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask F E Smith Your Own Question

F E Smith
F E Smith, Advocate
Category: Law
Satisfied Customers: 8985
Experience:  I have been practising for 30 years.
18203470
Type Your Law Question Here...
F E Smith is online now

I have a question about repossession of property. The bank

Resolved Question:

Hi,
I have a question about repossession of property. The bank repossessed my house in 2012 and sold it in 2012. I've received a letter from them today asking for repayment of the shortfall. The have given me 10 days to respond. What's the best advice can you give me at this stage. Thanks N
Submitted: 8 months ago.
Category: Law
Expert:  F E Smith replied 8 months ago.

Just because the house has been repossessed doesn’t necessarily mean that you escape pay the balance of the mortgage. It is normal for lenders to chase the borrowers in circumstances like this. How much are they asking for?

Do you have any other assets savings, pensions etc and what would be the ramifications financially for you with regard to work etc if you went bankrupt?

How much are they asking for?

Customer: replied 8 months ago.
Hi, They are asking for £42, 185. I don't have any assets to use as security. I'm just starting work as a self-employed, sole trader. I'm guessing I'll have to try and negotiate a repayment plan with them? Thanks N
Expert:  F E Smith replied 8 months ago.

One of the things that you need to consider is going bankrupt because that gets rid of it. It depends how important having your credit history trashed is although I imagine it’s not good at the moment with the house repossession. You would be discharged after 12 months and after 5 years it would no longer appear on the records. To repay £42,000 even if you were repaying say, £500 per month, is going to take 7 years and the lender is not likely to want to wait 7 years.

In circumstances like this, I suggest that you speak to an insolvency practitioner. Negotiations done by an insolvency practitioner with the threat of you going bankrupt hanging over the lenders debt, is sometimes a good incentive for them to settle for a lesser sum of money.

If they made you bankrupt, they would get probably nothing. However if you were to be able to raise some money by borrowing from a friend, perhaps £5000, they may accept 10p in the pound.

What you can also do is consider a Individual Voluntary Arrangement where creditors are lumped into a pot and you make an arrangement to pay a fixed sum in respect of creditors over a period of time, usually five years. If you struggled to pay the payments under the Individual Voluntary Arrangement (IVA) then your only alternative would be later bankruptcy.

It isn’t something that I would recommend that you try to do alone, but I would urge you to speak to an insolvency practitioner will take detailed instructions from you and advise you in depth.

Can I clarify anything for you?

Please rate the service positive. It’s an important part of the process by which experts get paid. It doesn’t cost you extra but helps me greatly. We can still exchange email.

Best wishes.

FES.

Customer: replied 8 months ago.
Great thanks for your advice. No further questions. Kind regards N
Expert:  F E Smith replied 8 months ago.

Thank you. When you get a moment please don’t forget to rate my answer 3-5 stars so that I get paid. The thread remains open if anything crops up.

F E Smith, Advocate
Category: Law
Satisfied Customers: 8985
Experience: I have been practising for 30 years.
F E Smith and other Law Specialists are ready to help you

What Customers are Saying:

 
 
 
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
< Previous | Next >
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
  • A quick response, a succinct and helpful answer in simple English. I believe I can now confront the counter party with confidence -- worth the 30 bucks! Rick
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
 
 
 

Meet The Experts:

 
 
 
  • Jo C.

    Jo C.

    Barrister

    Satisfied Customers:

    30316
    Over 5 years in practice
< Previous | Next >
  • http://ww2.justanswer.com/uploads/EM/emus/2015-7-7_192327_bigstockportraitofconfidentfemale.64x64.jpg Jo C.'s Avatar

    Jo C.

    Barrister

    Satisfied Customers:

    30316
    Over 5 years in practice
  • http://ww2.justanswer.com/uploads/BE/benjones/2015-12-1_0437_ennew.64x64.jpg Ben Jones's Avatar

    Ben Jones

    UK Lawyer

    Satisfied Customers:

    11553
    Qualified Solicitor - Please start your question with 'For Ben Jones'
  • http://ww2.justanswer.com/uploads/BU/Buachaill/2012-5-25_211156_barrister5.64x64.jpg Buachaill's Avatar

    Buachaill

    Barrister

    Satisfied Customers:

    1754
    Barrister 17 years experience
  • http://ww2.justanswer.com/uploads/JO/jojobi/2013-3-19_0265_maxlowryphoto.64x64.jpg Max Lowry's Avatar

    Max Lowry

    Advocate

    Satisfied Customers:

    894
    LLB, 10 years post qualification experience
  • http://ww2.justanswer.com/uploads/UK/UKLawyer/2012-4-12_9849_F2.64x64.jpg UK_Lawyer's Avatar

    UK_Lawyer

    Solicitor

    Satisfied Customers:

    750
    I am a qualified solicitor and an expert in UK law.
  • http://ww2.justanswer.com/uploads/KA/Kasare/kasare.64x64.jpg Kasare's Avatar

    Kasare

    Solicitor

    Satisfied Customers:

    402
    Solicitor, 10 yrs plus experience in civil litigation, employment and family law
  • http://ww2.justanswer.com/uploads/OS/osh/2015-7-7_19268_gettyimagesb.64x64.jpg Joshua's Avatar

    Joshua

    Lawyer

    Satisfied Customers:

    8199
    LL.B (Hons), Higher Prof. Dip. Law & Practice