Help, whats an inhibition order?

sophsters

Ive been told today that one of my creditors is going to take me to court to get an inhibition order, i cant find much info about it

is it a ccj? im so worried! can anyone give me some advice please, im in scotland if it helps

thepinkladez_2

Creditors who take debtors to Court in Scotland and get a Decree can then get the Court to apply Inhibition Order on you . This is similar to a Charging Order elsewhere in the UK, but an Inhibition Order is not on the house it's on the person and inhibits you from selling the house without paying the debt owed in full.

hth

sophsters

so it isnt a ccj? we come to the end of our northern rock fixed rate in december and might need to try and remortgege, if we have an inhibition order by then i take it we wont be able to remortgage?

thepinkladez_2

well i thought you could only get a charging order if you had a ccj ( but i am no expert so i could be wrong!) have a look at this link here re charging orders and ccjs:
http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=15_charging_orders_in_the_county_court

This is from the english ndl page so i dont know if its all the same in scotland??

yes i assume that this could make getting a deacent remortgage quite difficult. maybe better to stay on what your lender offers you as i imagine youwill get quite penalised by other lenders.

sophsters

thanks for the info x

coolcait

Hiya
First of all, have you spoken to CAB, or CCCS, or one of the free organisations who can give you advice? If not, please have a word with them to go over your options.

In the meantime, I had a rummage around the Accountant in Ban kruptcy's site and found this leaflet

http://www.aib.gov.uk/guidance/publications/debtbankruptcy/DAIP/Q/Page/2

Did your creditor give you a copy of it? I'm asking, because the first paragraph says:

"There are a number of circumstances where a creditor (someone you owe money to) must, by law, provide you with this leaflet. It must be provided if they are taking steps to recover the money you owe through a court or legal process or if they intend to petition for your bankruptcy."

So, if they're taking you to court, and HAVEN'T sent you this leaflet, you can point out that they're not following the new bankruptcy regulations... And if it does end up in court you can tell the Sheriff that your creditor didn't do things properly...:D

Has your creditor actually got a court date for this inhibition, or are they just telling that they could do it? (Yeah, and I **COULD** win the Euromillions draw tomorrow... but there's no chance that it will happen if I don't even have a ticket ).

Once folks here know if it's just a threat from your creditor, or something that's about to happen, we'll have a better idea of the kind of advice to give you. :money:

sleepless_saver

thepinkladez, it's different in Scotland. There are no CCJs for a start.

The National Debtline site has a Scottish section, and this is from it:

"What is an inhibition?
This is a court order preventing you from selling your house. This is to avoid you disposing of a major asset and not paying your creditors. It lasts for 5 years and then runs out but the creditor could ask for a new order.
If you want to sell your house you will have to grant a mandate authorising your solicitors to deduct the amount owed to the creditor from the proceeds of the sale of the house after paying the mortgage, the estate agent's, advertising and the solicitor's fees. The solicitor will need to pay the money to the creditor in return for the creditor lifting the inhibition, allowing the sale to go ahead."

coolcait

sleepless_saver wrote: »

thepinkladez, it's different in Scotland. There are no CCJs for a start.

The National Debtline site has a Scottish section, and this is from it:

"What is an inhibition?
This is a court order preventing you from selling your house. This is to avoid you disposing of a major asset and not paying your creditors. It lasts for 5 years and then runs out but the creditor could ask for a new order.
If you want to sell your house you will have to grant a mandate authorising your solicitors to deduct the amount owed to the creditor from the proceeds of the sale of the house after paying the mortgage, the estate agent's, advertising and the solicitor's fees. The solicitor will need to pay the money to the creditor in return for the creditor lifting the inhibition, allowing the sale to go ahead."

Hiya sleepless

I know the feeling... :eek:

I think your post sums up my own understanding of inhibition orders/letters of inhibition very well.

Now, if I can pull out my usual soapbox, and start preaching...

If you are eligible for the Debt Arrangement Scheme, and are accepted onto it, your creditors can't do any kind of 'diligence' against you - and that includes inhibitions.

(I'm sorry if I appear obsessive , but I just think that a DMP which obliges creditors to freeze interest; protects you from court action and demands for more you've agreed to pay; and lets you pay off what you owe, is pretty good compared to other options!:D )

thepinkladez_2

sleepless_saver wrote: »

thepinkladez, it's different in Scotland. There are no CCJs for a start.

quote]

hi sleepless thats why i said i had found the info from an english page so i wasn't sure if it was the same in scotland see my previus post!sorry!

sophsters

Hiya, we are cyrrently with the cccs for a year and a half now, but the debt for this loan of £7000 has been sold to link financial. We went to speak to someone in the financial department for the council about doing a DAS and she called them to ask if they had accepted our repayment plan from the cccs and they said they were in the process of taking us to court to get an inhibition order.

I havent recieved any leaflet from them, im going to call them tomorrow morning and find out whats going on.

Do you think its likely that if i upped the amount we are giving them each month they might hault the legal proceedings? I have a family member who has offered to help me out with a wee bit of money to get them from placing an inhibition order on the house as we are needing to remortgage at the end of the year and this will seriously muck things up for us.

thanks

creditcritter

in theory an inhibition order lasts five years if the creditors failed to renew for a period of time could you sell your pecentage of the equity of the joint owned property to your spouse for a token sum in the lapsed period .