Handing back the keys to mortgage company??

[Reviva UK]

Hi Kenty

the normal clawback period for unsecured debts is 6 years. If you can manage to hide without being detected for 6 years then the debt is legally written off, however 6 years is a long time living under a rock!!!

Shortfall due to mortgage / house sale is a 12 year period. I haven't quite got to the bottom of this but from what I suspect the mortgage company sell the debt ( shortfall) on to another company for X%.

these companies then sit tight and wait until the 11th hour when you stand a great chance of having recovered financially and are actually worth something again.

what a great time for a creditor to come calling out of the blue.

[Andrew Graveson]

Hello,

A couple of notes of correction to the previous post:

If the creditor has not made fair attempt to contact you for six years (12 for mortgage debt) then under the statute of limitations the debt might be considered to be unenforceable.

If you have been "hiding" (i.e. concealing new contact details from a creditor) then a judge will be minded to extend the period.

Terms like "clawback" and "hiding" seem a bit unfortunate on a site that isn't about avoiding debt. I think most posters and visitors understand that this site is about the dealing with unmanageable personal debt in an equitable and responsible manner by all parties concerned.

[Reviva UK]

Hi andrew

apologies if I have offended you.

As per my previous posts I have never suggested that one should avoid the responsibility of repaying ones debt - unless of course it is a sheer impossibility and B is the best solution for everyone.

Perhaps my grammar is a little weak at 11.50pm. I note that yours is still going strong well into the morning.

I have a number of clients that initially decided to "evade" their creditors by moving to Spain or elsewhere and have now got fed up with living in "hiding" and want to move home and get it all sorted.
I was thinking about their situations when i wrote the post.

Thanks again for the comment

[sjw]

if i go bankrupt can they lay in wait for 12 years and make me liable then as i would no longer be br.

[chris.g]

As long as the mortgage is included in your Bankruptcy, no. The debt would be gone, in effect.