Hi.
We had to close our business in 2010. We declared the business insolvent via an Insolvency Practitioner. She recommended waiting until one of our creditors petitioned for BR. They didn't so we went to CAP debt mgt charity and filed for BR in Nov 2012 and were discharged in 2013. The OR declared BI in our house of £400 so we bought it back and our solicitor is in the process of transferring the deeds.
Whilst looking through the paperwork I noticed that there was a second charge from HSBC still on the house. Assuming this was an oversight we asked our solicitor to let HSBC know that we were discharged. It transpires (as a lot of people will know -but not ourselves) that this secured debt remains.
When we were with the IP and CAP we were told to keep paying our mortgage (which we did) and send any other letters or demands to them. At no point did anyone mention that we should keep paying this loan but perhaps they thought we were aware of this and also at the time were unable to pay it as it was a business loan and there was no longer a business., This loan was secured in 2009. The last payment was in Sept 2010. The balance was13k.
We have had no contact from HSBC in over 4 years. Even when the solicitor wrote asking to have the charge removed HSBC simply replied a month later telling her there was 16k owing secured against the house and if she needed any more details to contact them on the number below. When I subsequently phoned Securities the girl didn't even ask my name and told me to write in.
How do we approach HSBC without stirring up a hornet’s nest? We want to come to a reduced figure which we can pay off monthly. Is that possible? Why have they not contacted us or applied for repossession? Are they waiting for house prices to rise? So many questions but I can't find anyone to whom this has happened as 2nd charges have normally taken action by now. We live in Northern Ireland in case that makes any difference legally.
It is unlikely that HSBC will seek possession for the debt and would probably be happy to have a repayment plan in place. Your property is probably still in negative equity but a repayment plan should have been put in place at the time of the bankruptcy. It is not too late to do this now and HSBC would probably be happy to get something back. You could try and offer a full and final settlement for them to remove their charge and that has been done before too.
Thanks for the reply. I realise that ignorance is no excuse which us why I am concerned they
Will look unfavourably upon us for not having tried to make a payment in over 4 years.
