when you have a debt you cant pay the courts can put a charge on your house, meaning if you sell the house or remortgage you must pay the debt from the proceeds. BUT if the debt is written off and you later remortgage, would you still have to pay the debt? please dont guess,only answer if you KNOW...thanks!
2007-03-06 05:40:35 · 9 answers · asked by ginger 6 in Business & Finance ➔ Personal Finance
UK only please
2007-03-06 05:48:21 · update #1
A charge on your property is officially recorded by the land registry, only if the charge is removed are you free of the repayment obligation. The purpose of the charge is to ensure that the debt will be repaid (if need be through the sale of the house) and will never need to be written off. If you pay off the debt without selling the house, make sure that the charge is removed. An enquiry to the land registry will reveal any charges.
2007-03-06 05:56:09 · answer #1 · answered by Sangmo 5 · 0⤊ 0⤋
When you cant pay a debt and the court finds you guilty, they put a judgement on you and attach a lien to your house. This is to ensure that they receive their money or have a stake in your home until they can get what they are owed. If this debt has been "written off" (i'm assuming you mean released or dismissed) then you will need a paid in full letter or zero balance letter from the company that you owed the money to. This can be found in your credit report. If you can not get proof that this has been resolved/paid/removed/"written off" then you will have to pay this when you sell or refinance.
If you have more questions...dont hesitate.
2007-03-06 05:50:16 · answer #2 · answered by gabegillen 1 · 0⤊ 0⤋
If the statute barring period on the debt has run or if the creditor writes it off, this does not remove the charge from the title deeds. The judgement mortgage (as the charge is known) has a longer period to become statute barred (12 years but this may have changed) but to force it off the title to sell with clean title costs money as it involves a court application. Most creditors will do a deal at that stage. If they are still within their time they will seek everything they can get. Check with Citizens Advice.
2007-03-06 05:49:43 · answer #3 · answered by Finbarr D 4 · 0⤊ 0⤋
When a creditor puts a lien on your house, the lien stays forever unless the debt is satisfied. If the creditor "writes off" the debt, that does not mean the debt was satisfied. However, if the "write-off" process includes a settlement and satisfaction of the debt, then the creditor is responsible to remove the lien by recording an acknowledgment of satisfaction of the debt.
What state are you in? It may matter.
2007-03-06 05:45:34 · answer #4 · answered by Captain Al 2 · 1⤊ 1⤋
hi i know that after 6 years of not paying a debt and not havin contact with n e 1 with regards to the debt, the debt clears of your records, if the courts have put a charge on your house to clear the debt then u need to go and see some 1 like CAB who will help you take steps to remove this charge as you dont have to pay it after 6 years
2007-03-06 05:55:06 · answer #5 · answered by Anonymous · 0⤊ 1⤋
If the debt is "written off", that does not excuse you from paying it. When a debt is "written off", that merely means that the people you owe are going to get some favorable tax treatment in exchange for writing off the debt. It does not mean they can't continue to try to collect it. It does not mean you don't owe it. Any lien that is attached to your deed will remain there until it is satisfied. So you'll still have to pay the debt.
I *know* this for sure. I am not guessing. Good luck.
2007-03-06 05:49:11 · answer #6 · answered by Scotty Doesnt Know 7 · 0⤊ 1⤋
You are referring to a judgement. They usually stay on the property for 20 years and can be renewed; but that does depend on the state. Written off won't remove it from the county records.
2007-03-06 05:45:37 · answer #7 · answered by wizjp 7 · 0⤊ 0⤋
I recently re mortaged and had to pay for car etc. that i had defaulted on but i had credit card debts that just disapered. when i rang them i was told the debts were sold on to another company. i havent heard any more about them and they were for about 5 grand. happy days
2007-03-06 05:46:04 · answer #8 · answered by Anonymous · 0⤊ 1⤋
i don't think so
2007-03-06 05:46:53 · answer #9 · answered by launa b 1 · 0⤊ 1⤋