Promissory notes

[Mrs Danvers]

Hi

I'm new to posting but have read many of the threads you've posted about bankruptcy and they've been helpful - thank you!

I was declared bankrupt 2010 following my ex-husband not paying the mortgages on a lot of jointly owned properties. It's been a bit of a mess but we're getting through it slowly!

I believe that when a mortgage is created promissory notes are created and that they are negotiable instruments. I've told the trustees that the lenders' banks hold these promissory notes and that they should look at the bankers ledgers to find them and that there are assets there that will pay off the bankruptcy in full.

However, unsurprisingly, the trustee claim to not know what I'm on about.

Has anyone got any suggestions as to what I can do next? I don't want to benefit in any way, just want the trustees to get off my back!

Thanks, in anticipation.

[Johno100]

Are you in the UK or the US?

[Mrs Danvers]

Are you in the UK or the US?

Hi John

 

I'm in the uk

Thanks

[Johno100]

Hi John

 

I'm in the uk

Thanks

 

Promissory notes form part of the US mortgage lending procedure and borrowers are often required to sign them when entering into a mortgage. But as you are in the UK your original post doesn't make much sense.

 

If I have this straight, your husband took out mortgages (joint mortgages in both your names?) on a number of properties (buy to let?). In other words the bank(s) lent him a sum of money that was used to purchase the properties from the previous owners and in exchange the bank took a charge over the properties as security and your husband entered into an agreement to repay (plus interest) the bank over x number of years.

 

Because of a failure to adhere to the agreement(s) i.e. pay the mortgage, the mortgages were defaulted on, the properties were repossessed and then sold. There was a shortfall between the outstanding mortgage amounts and the price the properties were sold for. The bank sought repayment of this shortfall from your husband and you, you could not pay and they either made you both bankrupt or you made yourself bankrupt. So good so far?

[newstarter]

Yes Johno is right,although they are used in the U.K a promissory note is a form of i.o.u its a legal agreement between a lender and a borrower to pay back said amount within a given period of time,sometimes drawn up for,say for example a loan given by one familly member to another,but as already stated above,nothing to do with mortgages in this country im afraid.

[thepalace1]

Promissory notes are cash..

 

"We have repeatedly said in this court that a bill of exchange or a promissory note is to be treated as cash. It is to be honoured unless there is some good reason to the contrary"

(see per Lord Denning M.R. in Fielding & Platt Ltd v Selim Najjar [1969] 1 W.L.R. 357 at 361; [1969] 2 All E.R. 150 at 152, CA)