6/12 year rule

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In December '91 I handed in the keys to my house on the advice of my local Halifax Branch (the lender). I had gone to them for help as I was self employed and the resesion caused a massive drop in my business. I was unable to continue to make the monthly repayments, they told me that I had a MIG which would cover the shortfall of the negative equity. I had at that time never heard of an MIG. They said that in order for a claim to be made I had to be at least two months in arrears and advised me to stop paying the mortgage. Naturally I took their advise, they did not however tell me that the Sun Alliance would persue me for their pay-out.

I paid #295,000.00 for the house in march '90. The Halifax sold it in june '92 for #205,000.00 Less than six years later the house was on the market again for #380,000.00!!! Do you think it was sold by the Halifax at below the market value?

About two years ago I had a call at work from somone posing as the Jury Service. I smelt a rat straight away as they wanted to know my home address and if I owned my home (I didn't tell them). They were not who they said they were, I checked with the Jury service who had received similar complaints that day! Within minutes of my call from the make believe Jury Service, my accountant had a call from someone saying that they were from the Tax Office, also wanting to know my home address, unfortunately he told them. It was not the Tax office, after I told him of my call, he checked.

The next day I received an intimidating letter from 'The Central Group of Companies' chasing money for Sun Alliance. Over the next year I received several letters from them. Somehow they also found out my ex-directory home telephone number.

About a year ago I started to receive letters from Curtis Solictors of Plymouth, also acting for Sun Alliance. Two days ago both my wife and I received Statutory Insolvency Demands for #43,750.00 by first class post.

I do not know if this is yet another threat, or if this time it is for real. I have never acknowledged the debt or made any contact with them or The Central Group of Companies.

Do they have a case? How does the 6/12 year rule apply to an insurance company, do they have 6 or 12 years?

The nature of the Statutory Demand is that if we don't respond within the specified time, Curtis could bankrupt us. We are very worried, can anyone give advice?

Edward McCann

-- Edward McCann (edward.mccann@btconnect.com), November 24, 1999

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