Response to Income and Expenditure form

It is my understanding too that the lender has 12 years to chase a shortfall debt, and that there is some disagreement whether this period starts from the first mortgage payment default, from the repossession, or from the sale. Lenders might even argue it dates from when they quantify the debt, which might be some days after the sale. My understanding is based on Section 20 of the Limitations Act 1980. I think the confusion is added to by the voluntary CML agreement to not chase shortfall debts if they have made no initial contact within 6 years. This much-feted agreement simply means they'll stop worrying about the tiny number of really awkward cases which they fail to contact within 6 years. It has no effect on the vast majority of us. Call me cynical but I don't think you'll get anywhere with a 'disaster fund'. But an 'amnesty' on debts arising from the recession of the early 90s should be suggested somewhere about now, just at the time when lenders are beginning to get nervous again. As time goes on, the costs of chasing some of these debts must rise to meet the payments they receive -- making them pale into insignificance beside the richer pickings they can expect from the coming round of repossessions, simply because the amounts involved have risen so dramatically. Good luck

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