Judgement mortgage engagement

[Poppykk]

Can anyone tell me if filling in a standard financial statement is classed as engagement in regards to discharge of a judgement mortgage? My mother in law filled in a standard financial statement for the bank the arrears are owed to, the result of this was she cannot afford to pay the judgement and they are selling same to a vulture fund. This jm was obtained more than 12 years ago. No payments have been made in this time. One solicitor told her that because she has filled in the sfs and spoke on the phone with the bank about the sfs, she has engaged with the bank she has admitted to the debt and restarted the JM. Is he correct or should she seek a second opinion? Thanks in advance

 

[Jim Stafford]

The solicitor is partially correct. A "verbal" acknowledgment of the JM does not "re-start" the Statute of Limitations but a "written" acknowledgment does.

She should have written "Submitted on a Without prejudice" basis on the front page of the SFS before submitting it.

The good news is that, based on recent judgments, the vulture fund will be unable to "enforce" the JM as the Courts would not provide the necessary consent. She should be able to negotiate a deal with the vulture fund.

Jim Stafford