Desperate situation. Please help.

[lessthan9lives]

Disclaimer: I haven't name changed and this thread completely outs me. Mum or dad if you read this I am only trying to help I am as desperate as you are.

Right. DF owned his own company. About two weeks ago he went into receivership. All the assets are being sold but there isn't nearly enough to cover the debts. In a fit of desperation some time ago to try and turn things around DF signed a personal loan agreement. The company it's self was limited but this loan wasn't. None of us knew that he had done this. DM and DF own their own modest house in joint names.

Is it right that the bank can fource the sale of the house and take my dads share because he signed the personal agreement?

Is there any way to prevent this if this is the case? DF did it without telling anyone because he despirstely wanted to save the company and peoples jobs. There was an element of miss sale on the part of the bank.

DF and DM have lost everything. I know everyone works hard but DF has been doing 7am-8/9pm almost every day of my thirty year life. They don't even have a pension because the premises of the business was their 'nest egg'. I really want to save their home.

Thank you for getting this far. Any advice would be much appreciated.

X lessthan.

If it's not secured against the property then they can't automatically force its sale. However they can get judgment against him and thereafter a charging order on his share of the property. It will take them longer to force a sale of the property doing it that way.

How much is the property worth? Would he run the risk of insolvency over this? If the property is worth £500k then it would be best to sell it and pay off wha is owed to avoid interest accruing. If however it's worth £150k then all the bank can get, maximum, is £75k by taking enforcement proceedings against the property. He will still owe any shortfall however, and they may be able to take that over time out of retirement income depending upon how much he receives.

Thanks crabbyoldbat I will have a look. Sorry you had to go through difficult times.

It is not my area of law but my thought is that if the loan is not secured against the property the Bank will enforce it against your father. If he fails to pay, they could petition for his bankruptcy. A trustee in bankruptcy will then have to collect in and liquidate your father's assets to meet the debt. As part of this process the trustee can ask the court for an order to sell jointly owned property (I think it is only in exceptional circumstances that the court will refuse). Where a spouse is living at the property, I think they can ask for this to be delayed by a year. The trustee in bankrutcy will only be entitled to your father's share of the proceeds (ie half).

Has he tried to reach an arrangement with the Bank on repaying the loan?

Your father and mother need legal advice on what to do next and how to stop or delay the sale of the house.