Why is my mortgage lender giving the ISI information post bankruptcy?

S

Silvio Dante

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Any help appreciated, especially from anyone who has been through the process.

I was disappointed recently to find that my only secured lender had sent information to the ISI.
It would appear to have been a routine box tick exercise by the ISI (something they should have done during bankruptcy but didn't).
That really isn't the issue.

When I queried it with the lender, I was told they had to comply with the ISI as I had been adjudicated bankrupt.
When I explained that I was no longer a bankrupt and the loan (as advised by the secured lender to the OA) had never been part of the bankruptcy, he was a little less certain but stuck to his guns that it was in order to do so.

So, is he correct?

Is there no time limit under which a lender can continue to exchange personal data to the ISI without either the consent or knowledge of the borrowers?

I will be making a complaint to the DPC and will see what comes but that could take months.
 
Silvio

Any of your creditors are obliged to co-operate with the ISI.

I am puzzled by your comment that the loan was never part of the bankruptcy? All of your loans are written off in the bankruptcy.


Jim Stafford
 
Hi Jim

I am not surprised that Silivio mistakenly thought that his loan was not part of the bankruptcy. It's such a complicated area, that most people just do not understand it. When advisors say: "You can often keep your home in a bankruptcy", it leads people to believe that it's in some way outside the bankruptcy process.

Silvio

Jim has written a great explanation of it here:

http://www.frielstafford.ie/personal-insolvency/what-happens-the-family-home-in-a-bankruptcy/

You will see that "your" home is not actually your home. It is vested in the Official Assignee. If you want it, you will have to buy it from him.

Brendan
 
Thank you both for your replies, but with respect I am very aware of obligations of creditors and family home issues.
My point is much more specific.

The OA request all creditors to return proof of debt forms within 28 days of adjudication.
In the case of a secured lender, the form is slightly different in that they are asked specifically "if they wish to rely on their security, and remain outside the bankruptcy"

In this instance, that is exactly what the lender did.
So, this loan stays outside and is not written off.

Yet over 3 years later and 9 months post bankruptcy discharge, the secured lender sent up to date personal information regarding the joint mortgage.
I am unsure whether any obligation exists for them to do so given the bankruptcy had ended and they opted over 3 years ago to remain outside.

Hypothetically, can the ISI continue endlessly to seek personal information on a joint loan that wasn't part of the bankruptcy and more importantly can they do it without either the consent or knowledge of either the discharged bankrupt or the non bankrupted spouse?

As explained, as far as I can see, the reasons for the request from the ISI was relatively innocuous, tidying up stuff.
But the ease at which the lender just assumed they should fire back everything requested without question or reference to either of us concerns me.

In general I have found the ISI was ill prepared for the 1 year implementation and have been very slack on many things.
 
Hi Silvio


From their website

"How will bankruptcy affect your family home
...

If your interest in your family home is in negative equity and the Official Assignee has not issued proceedings seeking sale of the family home within 3 years of the date of adjudication of bankruptcy, the family home may re-vest in you, subject to any existing mortgage. If you do not wish the property to re-vest in your name, you should communicate that to the Official Assignee in writing."

So your home and mortgage were in the bankruptcy, but they have now come out of it, if the OA did not take any action.

Brendan
 
Thanks Brendan, but again, would be very familiar with same.

Perhaps someone could answer a very simple question

When does the court order that adjudicates one bankrupt expire (assuming it ever does)?
I would have assumed your certificate of discharge, discharges the adjudication order and this is what the legislation (Sec 85 Bankruptcy Act 1988) appears to suggest.
 
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Silvio

I would say that the bank availed of the "THIRD OPTION"– Realise the asset or value its security held and then claim in the bankruptcy for any balance owed in excess of the net proceeds received or valuation.

If the bank wishes to avail of the third option, it should confirm this in writing to the Official Assignee. It should state the amount owed at the date of adjudication, realise the asset or formally value any security and confirm it wishes to claim for any balance owed in excess of the net proceeds received or valuation furnished. It should also provide necessary copy mortgage, statements, valuations, and other relevant proofs to vouch such claims and valuations. It should subsequently submit claim in respect of its unsecured debt.

Jim Stafford
 
No Jim, as previously stated, they availed of the first option
"rely on security and remain outside this bankruptcy"

I have a copy of the proof of debt
 
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