chased for #50k after 7 years, will i lose my new house?

I'm being chased 7 years after i handed the keys in, and ive just bought a house and i really dont want to lose it again. The building soc is abbey national, the indemnity solicitors are Eversheds. The flat was reposessed in 1992 when i handed the keys in. I thought i'd be ok as i had indemnity insurance. Then in Feb 99 i got a letter from eversheds demanding i contact them immediately regarding the debt of #55k, and a long list of how they arrived at that sum. This included 2 years interest before they sold the flat in '94, then they sold it for #30k when it had been valued in 1990 at #80k. It was in very good condition. I had the next letter a week later demanding i contact them urgently, and mentioning taking me to court. The third letter was again a week later. I got some debt advice saying that i shouldn't speak to eversheds or contact them as this would mean i accepted liability, so i haven't. A local free solicitor has written to them for me saying i'm not liable as its past 6 years since the reposession, but it seems unclear whether this is true. He also sent a "without prejudice" letter offering them #500 final settlement. We've now had various off the wall exchanges when eversheds say they'll accept #25000, then #8000, and now #15000 (!!). I cant get anything like these amounts together, so now they say they'll take proceedings against me. Im applying for legal aid. Its hard to believe any of this is happening just as i was getting on my feet again after all these years struggling. I don't want to lose my new house. Any advice or suggestions? I'd like to hear from anyone else in a similar position. email me on indigo@hurwitzend.demon.co.uk weeks. I'm self employed at the moment earning about #7-8k pa. I've just bought a house which i really don't want to lose. (I suspect that this is how they got on to me.) I did a financial statement thing with the solicitor which shows my outgoings exceed my income. I'd really like to know what other people have settled for, and if other people have made the 6 year rule stick, and if other people haven't managed to settle so have got an ongoing debt dragging them down indefinately. And I'd like to know what i should do next! Let me know if you need any more info. I look forward to hearing from you. -- Indigo

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