From a £230 unpaid bill to the loss of a £3M castle

[Dod101]

I'm not sure that this should be under Legal Issues (practical). But it does strongly suggest that this is something you should not do.
It started with an unpaid bill of £230, and after much legal wrangling over 22 years it has resulted in the loss of the £3M Knockderry castle in Argyll..

https://www.bbc.co.uk/news/uk-scotland-glasgow-west-60579467

A classic case of fur coat an nae knickers.

The cost of running, even just heating, such a large abode can eat away at a persons finances and they are often too proud to downsize.
If the place sells for £3M, then they should get £2M+ back after all the debt has been paid, so I doubt they will be homeless for all that long.

In the article quoted, there does not seem to be any mention of how much is actually owed. Do you know that they owe a mere £1 million or so?

It is of no consequence but it would be interesting to know.

Dod

[Lanark]

from the article:

The bill and the subsequent legal costs saw the debt soar to a reported £30,000 and in 2000 Mrs Van Overwaele was sequestrated - the Scottish legal term for being made legally bankrupt.

Even with interest and further charges being added in the last 22 years, I cant see the debt growing to more than £1M

not sure how the bankrupcy plays into this?

[Dod101]

from the article:

The bill and the subsequent legal costs saw the debt soar to a reported £30,000 and in 2000 Mrs Van Overwaele was sequestrated - the Scottish legal term for being made legally bankrupt.

Even with interest and further charges being added in the last 22 years, I cant see the debt growing to more than £1M

not sure how the bankrupcy plays into this?

The lady is the debtor and she (I think I read) sold the castle to her brother for £1 million some years back. The poor woman has got to live so that has no doubt dwindled so she may not have all that much to he name. Presumably a bit like Councils, the creditor can claim that selling the castle was simply to avoid having assets to her name or the creditor may have a charge on it.

Dod

[Mike4]

from the article:

The bill and the subsequent legal costs saw the debt soar to a reported £30,000 and in 2000 Mrs Van Overwaele was sequestrated - the Scottish legal term for being made legally bankrupt.

Even with interest and further charges being added in the last 22 years, I cant see the debt growing to more than £1M

not sure how the bankrupcy plays into this?

The lady is the debtor and she (I think I read) sold the castle to her brother for £1 million some years back. The poor woman has got to live so that has no doubt dwindled so she may not have all that much to he name. Presumably a bit like Councils, the creditor can claim that selling the castle was simply to avoid having assets to her name or the creditor may have a charge on it.

Dod

I think you are on it with this. Banks, once a personal loan goes bad, are fond of getting a charge on their customer's property I gather so perhaps this is what happened here. A charge on the castle was obtained and something under Scottish law allowed the creditor to eventually force a sale, after the delaying tactic of selling to her brother was unwound.