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RockBottomSolidBase
Advanced Contributor

313 Posts

Posted - 21 January 2019 :  11:48:31  Show Profile  Reply with Quote
I was discharged in Dec 2013

A property sale has been stopped on Friday 19/01/19 as the searches provided included a schedule of inhibition by Lloyd’s bank

We had a property repossessed by Lloyd’s bank and the debt was included in our creditors in the sequestration.

How can Lloyd’s have an inhibition registered and how to we deal with it. Poor buyer was told on Friday afternoon that they couldn’t collect keys

Kevin Mapstone
Trust Deed Expert



3675 Posts

Posted - 21 January 2019 :  14:49:29  Show Profile  Reply with Quote
Sounds like an oversight on the part of Lloyds. Your solicitor should speak to them and request that they sort it out asap in order that the sale can go through.

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RockBottomSolidBase
Advanced Contributor

313 Posts

Posted - 22 January 2019 :  09:40:21  Show Profile  Reply with Quote
Thanks Kevin - our conveyancing solicitor has asked us to call Lloyds, I wondered if it should be the IP as they will have records of any communication regarding the processing of any inhibition via the sequestration/ bankruptcy.

I emailed the person who dealt with our account, based in Lloyds Tokyo office but the email address appears to no longer be in use. I don't know if he still works there. I emailed because the time difference means I have to call in the middle of the night.

Should I be able to call their UK head office and ask them to deal with it? What are they likely to require from me to indicate that they should do this?

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Kevin Mapstone
Trust Deed Expert



3675 Posts

Posted - 22 January 2019 :  14:58:55  Show Profile  Reply with Quote
I'd have thought that Lloyds Head office in the UK should at least be able to give you up to date contact details for Lloyds Tokyo.

Your best bet may be to try and find out which solicitor has been acting on their behalf in the UK and then dealing with them, as they should understand Scottish insolvency law.

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RockBottomSolidBase
Advanced Contributor

313 Posts

Posted - 22 January 2019 :  23:22:58  Show Profile  Reply with Quote
today's twist is the IP says their firm'never touched' the lloyds loan as the property was repossessed.

When I listed creditors in the run up to applying for sequestration (Aug 2012) three properties were subject to repossession proceedings.

Lloyds repossessed at the end of Nov 2012, Sequestration awarded 19th Dec 2012

I understood at the time that the debts arising from any shortfall would be included as a claim in the sequestration?

my tenant was notified in March 2013 that he should make payments of rent to a new account, I don't know why he wasn't asked to do so earlier (and I don't know if it's relevant)

Date of Minute 9.6.14
Date served 5.6.14

Why would the IP leave Lloyds out of the list of creditors, how difficult will it be to convince Lloyds to remove the inhibition if the IP never included it?
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TDA (Debt Adviser)
Trust Deed Expert



12803 Posts

Posted - 23 January 2019 :  11:20:09  Show Profile  Reply with Quote
Hi RBSB.

My understanding is that this should not be an issue for you. Whether or not the IP listed this debt, my understanding is that it will be subject to your sequestration like any of the others.

I think that this is the case that you need to make to Lloyds.

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Kevin Mapstone
Trust Deed Expert



3675 Posts

Posted - 23 January 2019 :  13:41:02  Show Profile  Reply with Quote
Yes, I agree. Forgive me if I get too technical here, but...

A sequestration (or indeed Protected Trust Deed)discharges you from liability for any debt/obligation that exists prior to the date of award (with a few exceptions such as Student Loans).

It does include secured debts, though does not stop a secured lender from enforcing their security (ie repossessing the property), which is why the vast majority of people in a bankruptcy will continue to pay their mortgage (because otherwise they would lose their home).

So any shortfall following a repossession is as a result of a debt obligation which pre-existed the date of award of sequestration and is discharged along with everything else.
The trustee has a responsibility to deal with all creditors, but it's certainly not your fault if they haven't and shouldn't make any difference to your position.

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RockBottomSolidBase
Advanced Contributor

313 Posts

Posted - 28 January 2019 :  12:08:46  Show Profile  Reply with Quote
Solicitors for Lloyds are telling me they can't discuss the issue with me as I am not their client.

I finally managed to speak to someone at Lloyds who also says he can't discuss with me but did say that their solicitor has apparently advised them that they will contact me in this regard. The charge, the say is for 78702.06 and has to be paid before the inhibition can be removed.

All of your comments above echo what I was told before and was my understanding that the existing debts should be caught up in the sequestration.

I am at a bit of a stalemate now as ROS say the inhibition can only be lifted on receipt of written instruction from Lloyds, Lloyds say they never had notice of sequestration or a claim form and therefore the debt and associated inhibition remains.

Any practical suggestions would be very welcome, I don't think I have any say anywhere to get it dealt with.
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TDA (Debt Adviser)
Trust Deed Expert



12803 Posts

Posted - 28 January 2019 :  14:48:08  Show Profile  Reply with Quote
Hi RBSB,

The statement from the bank regarding not having received a notice, or a claim form, seems to show some technical naivety on the part of whoever said it.

Perhaps you could make a formal complaint about this to Lloyds? This will force them to assign someone else to review the detail of their position and, hopefully, realize that they've got it wrong.

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RockBottomSolidBase
Advanced Contributor

313 Posts

Posted - 28 January 2019 :  15:04:51  Show Profile  Reply with Quote
thanks TDA, I appreciate your reply

It has been an absolute mission over the last week, pillar to post trying to get someone to identify the next practical step to resolve the issue.

I have personally spoken with
* the company providing the searches,
*the Registers of Scotland,
*lawyers who dealt with our account on behalf of Lloyds
*lawyers who now deal with Lloyds accounts having taken over from prior
lawyers
*Lloyds in Edinburgh, who gave me 3 other numbers which were not
able to help or in turn advised another number
*Lloyds in Hong Kong, they transferred the file to Halifax
*Lloyds in Halifax, said they can't discuss with me as I'm not their
client
*Trustee in our sequestration

and our conveyancing solicitors have made at least as many calls.

Our trustee commented that they hadn't touched this debt, I have spoken with her and now understand that referred to any interest or abandonment notices.
She advises as you and Kevin have, there shouldn't be an inhibition, I'm just really stuck as to who/where to get any movement from Lloyds.
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RockBottomSolidBase
Advanced Contributor

313 Posts

Posted - 28 January 2019 :  15:13:48  Show Profile  Reply with Quote
TDA - In practical terms, how would I ascertain where to direct any formal complaint?
I was focussed on practical steps to resolve in order to let the sale complete but each day passing makes it more likely that the buyer would move on.

This is my attempt to withdraw from property investments but I'm making little progress

Ironically, Lloyds loan was the catalyst for our sequestration. We had a mortgage denominated in Yen, understanding that the loan amount would change with currency movements. We were advised by the broker for Lloyds that it would not be significant until we were selling and the loan would be transferred to Sterling for settlement. However, Lloyds switched the currency at the point where it resulted in our loan of 75k being doubled and then repossessed when we couldn't pay 86k to reduce the loan to value from 157%
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TDA (Debt Adviser)
Trust Deed Expert



12803 Posts

Posted - 29 January 2019 :  09:09:15  Show Profile  Reply with Quote
I think the complaint would go to whichever organization placed the inhibition (and did not remove it when they should have done)?

You might want to mention that you'll consider holding them liable for any extra costs you experience and, if it happens, the cost of losing a sale.

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RockBottomSolidBase
Advanced Contributor

313 Posts

Posted - 29 January 2019 :  14:16:38  Show Profile  Reply with Quote
Thanks, I have the address for LLoyds complaints, not optomistic anything will be done quickly but I'm thankful for everyone's input and reassurnace that a complaint is valid.
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TDA (Debt Adviser)
Trust Deed Expert



12803 Posts

Posted - 30 January 2019 :  20:15:13  Show Profile  Reply with Quote
It certainly seems to be valid RBSB.

Best wishes and I hope you get a quick and satisfactory resolution.

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Kevin Mapstone
Trust Deed Expert



3675 Posts

Posted - 31 January 2019 :  22:54:05  Show Profile  Reply with Quote
Good luck, RBSB. Hopefully the complaints process will do the trick. Otherwise all I can suggest is seeking further specialist legal advice as to how the issue can be forced.

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RockBottomSolidBase
Advanced Contributor

313 Posts

Posted - 06 February 2019 :  14:28:03  Show Profile  Reply with Quote
Thanks again

As of today, looks as though the buyer is looking to withdraw and look for another property, can't say I blame him.

Lawyers for Lloyds simply say they're waiting for Lloyds to get back to them.

Trustee says she is waiting to get files but I am sure from all comments above that is not really going to be helpful or necessary.

Could anyone direct me as to the wording/ legalities of what I am asking for and the basis for it? What is the legislation which compels Lloyds to remove the inhibition? I will now lodge a complaint but not sure what supports my position?
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