Charging Order? The myth

tra12 · 14 August 2009 at 5:34PM

hi so if u get a charging order and sell ur home, as long as you get a solicitor who nows about these restrictions u dont have to pay any of the dept even out of hes share of the property, whos dept it is is this right?

blueback · 14 August 2009 at 7:43PM

You need to ensure the solicitor knows the law on CO and restrictions. They MUST act in your interest and leave the minimum ammount of time nescessary to inform the creditor of the sale and provide an undertaking, which is legally binding and a serious offence to break, that the restriction will fall away and becaome void on competion to the buyers solictior.

Wait for completion and the funds hit your account. Of course, there will be some that act so quickly in order to recall the debt although my solicitor told me that this was very rare indeed.

bradfordlad · 15 August 2009 at 10:19AM

you say about the property being jointly owned - doesthis still apply if the mortgage is in joint names, as of course the mortgage terms have the "jointly & severally liable" clause in them.

To make myself clear - would it be a restriction (rather than a CO) if the house is jointly owned, and the mortgage is in joint names.

cheers

bl

blueback · 15 August 2009 at 2:35PM

The CO / restriction has nothing to do with the mortgage

Joint owned mortgage + joint owned debt = full charging order

Joint owned mortgage + individual owned debt = restriction

FUll charging order = equity automatically goes toward paying the debt

Restriction = creditor has to apply to the court to obtain money

If your solicitor informs your creditor no more than 14 days before completion they have only a very slim chance of making the deadline. It would mean the person opening the letter to send it straight to legal and the cogs turning faster than their brains!

Hope this helps

JES_F1 · 15 August 2009 at 9:52PM

What about a joint-owned property owned outright (i.e. with no mortgage) and individual debt? Is that still a restriction rather than a full charging order?

blueback · 16 August 2009 at 8:02AM

The restriction is placed on the land and has nothing to do with the mortgage so the same would apply.

I am not a solicitor so check anything I say with them first.

Miss_Poohs · 16 August 2009 at 8:44AM

Does this apply in Scotland too?

blueback · 16 August 2009 at 2:40PM

No idea i'm afraid, but you could just call land registry and check it out

AMBERSHADOW · 16 August 2009 at 2:42PM

Thank you for bringing this back to the top of the forum.. I believe there are loads of people thinking Creditor's can take our house, and without this knowledge you have provided we would possibly let them

thank you

blueback · 16 August 2009 at 6:35PM

I am sure that there a are a few people who have sold their properties and seen their proceeds hit their bank accounts instead of the creditor.

I just hope many more do before they change the law as they will definately do.

I am so gald that Northern Rock took the Charging Order in the first place because I am now saving, have no debts and have over £90000 unenforceable.

I would of continued in complete ignorance to be shackled in debt forever and paying 800 a month into a phony DMP.

My CRA file has gone from 21 pages to 7 and I have won £oooo,s in compensation all thanks to my solicitor and this site. it does take time, in my case just over a year.

Keep fighting, in fact it not fighting, you only have to write a few letters and stay in control.

Good luck all

Charging Order? The myth

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free