Case study Bank threatening legal action

Guys and Gals, just wondering if i had contact with the other joint mortgage holder, would that change much or have any bearing on things ?
 
Yes it would speed things up if you got the cooperation of the other partner. But they need to be careful too. Do they want the bank to know where they are. Would they be willing to sign a document for the bank that didn't require them to reveal where they are. I'm sure that's possible too.
 
Just to update

I have a meeting with free-legal-aid next week, i'll be asking them about bankruptcy and my position and
Ive filled in an insolvency form to a pip who will look it over and see if a deal is possible.
 
Bronte said:
It's the same story with them getting you to rent out the rooms, and they know full well you're storing up a whole heap of other trouble with revenue on this score.
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In relation to this point.

It has been claimed in the UK that Ulster bank have instructed borrowers in difficulty to pay them instead of HMC (UK revenue). As an example companies or individuals who have money in an account to pay say VAT, have instead had to pay the bank. Even worse, in some cases the bank has apparently instructed them to pay over paye/prsi that the employees have actually paid.

So it would appear that banks are fully aware of the problems the borrowers will have down the road with revenue, but they are only interested in getting every penny they can out of a borrower, even if it means that he will ultimately go bust, and that his employees may be out of pocket on tax paid, and more importantly on prsi, which affects social welfare entitlements.

Now maybe that is all a legitimate business tactis, but it's morally and ethically questionable.

I hope HMRC throws the book at them.
 
Just off phone with a PIP and he has suggested that bankpuptcy would probably be the best course of action for me.

Now I've been reading through the new literature available on the process and im wondering about this part

"As part of the new rules, an order can be made where a bankrupt person will have to pay income to creditors for five years.
If this order is made at the end of the bankruptcy, the bankrupt may be paying creditors for up to eight years."

What happens if im not in a position to pay anything ? and can an order be made later on
 
If you can't pay anything they get nothing. If you have no income at the end there will no order made.
 
Michael, things are not at all as bad as you think. You did not own these properties anyway, you have only lost the hope of owning them in years to come. But that is hardly a loss given it earns you write off a huge debt. You have no children!! That is such a freedom in many respects. Do your bankruptcy, get it over with and start again. The loss of deposits will pale in comparison to the freedom achieved. Save up some rent to sort yourself, give the tenants notice and post back the keys. Then it's their problem rather than you processing paperwork. No more maintenance no more property tax no more stress. I also recommend investing some money in weekly counselling for a while to ensure you emerge as your best self from this tough tough experiance.
 
Michael, save that rent to pay up to date all your taxes, personal and property. Only give them back the keys when this is done!!!! Do not leave yourself open to other debt stresses at the the end of this.
 
By the way, I have taken the time to read all the forms that need to be filled out and filed for a bankruptcy here in Ireland and in the UK , there is no doubt that anyone who managed to go through the process of purchasing a property could do this by themselves. There should be absolutely no need for someone to hire a solicitor or pip or anyone else to do this for them. I can see how it would be empowering and educational for a person to do it for themselves. I have always found court office staff and the insolvency service staff to be extremely helpful and generous with assisting people. Fear disenfranchises people. But in fact you are not dis-enfranchised,just start the process and you will be carried along. This is a feature of our Irish process that we should be proud of, it's accessibility.
 
Thanks a million Cantalia, really appreciate your comments.

Any ideas what will be the story with my ex who emigrated ?
For instance will the offical assignee try to find them ? and will there be any consequences for them ?
It seems it will be very hard for the bank to reposess if they cant find the person ?

Also the teanants, cant they just stay there until the house is sold on by the bank ?
 
Update-
Was in FLAC this morning for 30 mins, at this point in time they will not take on a banruptcy case or advise on debt problems, the only thing they offered was to take a look through my mortgage agreement for any possible but unlikely mistakes in it (would take 10 months waiting till then)
Kind of a waste of 30euros in my opinion.
 
Why will Flac not take a bankruptcy or debt case?

Why did it cost you 30 Euro. Doesn't the F stand for free. Are they not state funded. Is Flac another quango. Is it legal for them to charge people like you? Doesn't seem right that they charge people if their name suggest it's legal advice for free.

Did you have a list of questions you wanted answers to?

They apparently said that in 10 months time they could look at your mortgage documentation. Would this cost you more money?

Did they say why they would be looking for mistakes in the documents? How would this be of benefit to you?
 
They said they dont do debt cases at present and recommended i talk to someone who deals in that area, they are state funded and have not been trained in debt/bankruptcy .

On my receipt its written as a "contribution" not a fee even though i was required to pay it before the meeting.
They had full knowledge of how much i earn

I had a list of questions about bankruptcy but they were unable to answer them.
It would cost a further 100 euros to look at my mortgage documents.
I presume they wanted the documents to establish the legal facts and see if i do indeed owe the bank money before preceeding with anything,,, prob just protocol.
 
michaelg said:
They said they dont do debt cases at present and recommended i talk to someone who deals in that area, they are state funded and have not been trained in debt/bankruptcy .

On my receipt its written as a "contribution" not a fee even though i was required to pay it before the meeting.
They had full knowledge of how much i earn

It would cost a further 100 euros to look at my mortgage documents.
I presume they wanted the documents to establish the legal facts and see if i do indeed owe the bank money before preceeding with anything,,, prob just protocol.
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Now there's more of it. So you're not paying them you're 'contributing'. What on earth does that mean. Are you allowed to decline to contribute. Where does the contribution go. Does it go into paying the salary top ups of the Flac staff, but more importantly have they always charged this and is that legal.

Was it not a solicitor that you saw. Just two months ago I heard Noleen Blackwell (think that's her name) on the radio on debt, and I commented on it here on AAM at the time as I was less than impressed. But one would be led to believe they were helping people in debt. Which quite cleary is not so when they've told you to go elsewhere.

And where are the pulling the 100 Euro out of, does it cost more the second time you go, or do they have a list of fees/costs or that lovely word 'contributions'. Would be very interesting to know how this is allocated in their accounts. Another one for Shane Ross I wonder.

I totally do not get why they would look at your mortgage documentation, you borrowed the money, you owe it, you cannot pay it, and trying to find a way out by looking at the small print seems crazy. Has that ever succeeded, that there is a flaw in the mortgage documentation and ergo you don't owe the money.



(Michaelg, the above comments are not actually directed at you, just wondering what on earth this organisation is for and how it's financed and noting that they are of no help to you).
 
Bronte;

18% of mortgage docs by main lendersare flawed and unenforceable. I am sure its worse on sub-prime cases. { I do not advocate non-payment , but if there is a flaw and customer is being bullied , it would be nice to have}

Flac , have done good work on cases.
From my own experiences , it is amazing how even a little charge(contribution) makes people do the leg work themselves. I suspect Flac are inundated and would need a multiple of given resources to operate .
I am not apologising for them or their (contributions?) but @ least they appear on side.
 
Why are you worried about the ex or the banks difficulties after you go bankrupt?? It becomes their problem, you just walk away.
 
Gerry Canning said:
Bronte;

18% of mortgage docs by main lendersare flawed and unenforceable. I am sure its worse on sub-prime cases. { I do not advocate non-payment , but if there is a flaw and customer is being bullied , it would be nice to have}
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Where did you pull that nugget from or should I hazard a guess...
 
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