Response to 12 years could be forever....

We had a very interesting debate about the MIG and the payout changing the nature of the debt a while back - I am 100% sure that the MIG payout is a debt simple and that unless the remaining balance reverts in full to the original Lender for collection, entitlement to specialty debt status is forfeit. Debt collection agencies/factoring companies and such buy these debts, they must become debt simple when they are sold to them, in my opinion. They would then be subject to the six year rule from the date they were sold, unless previously covered bu a MIG payout and then the clock would already be ticking on that proportion. For tax purposes only the original supplier of the mortgage can claim bad debt relief in their statutory accounts...this is inextricably linked with the issue of supply..i.e between which parties was the original supply made...therefore this impacts on contract etc. The original Lender has 12 years from the date of sale etc to chase the part of the shortfall which has not been covered by a MIG payout. The MIG payout proportion *has* to be debt simple and subject to the six year rule. We need a friendly lawyer to test this!

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