Charging Orders

laney79

Hi Guys n Girls

I was made BR 20/02/09 after a year of deliberation and being chased by unsecured creditors. The vast majority of my debt was due to a failed business and personal guarantees on loans / premises etc. I have my interview with the OR next Friday.

I have a flat which I was renting out on a buy to let mortgage, the tenants caused damage to the property and left with 3 months of arrears leaving me in debt with the mortgage company as I couldn’t afford to pay the mortgage. This happened at the same time I was made redundant. I advised the mortgage co ( Mortgage Trust ) who were not at all sympathetic or helpful and would not allow me any additional time to catch up.

The property was re-possessed by letter a couple of weeks later although no one has visited the property yet as far as I am aware. I received a CCJ from the court a couple of weeks later. I was then made BR a week later and thought that it would take care of the CCJ and all other unsecured debts. I received an Interim Charging Order through the post a couple of days ago on my family home which is in negative equity. I have read the below post which was really helpful and I am going to dispute it on the grounds of:

1. The order would be unfair to other unsecured creditors
2. The property is owned jointly, it is in negative equity and if a sale was forced it would make the 3 of us homeless and would cause serious personal difficulties.

3. I was already made BR at the time the order was made at the court. (Should i include this one?)

Regarding the below could anyone please advise me if an Interim charging order is made at around the same time as the BR, does it still have the potential not to be included in the BR? and how i best to deal with this to avoid any potential issues?

skylight wrote: »

If they did this BEFORE bankruptcy, then if you are in a position to keep the property/mortgage going then you need to keep the payments on secured loans too.

However, if you go BR before they get a charging order, then it will always remain as an unsecured debt that will be included in your BR. (Before being more than days/few weeks as there have been cases where its gone a bit Pete Tong!)

Many thanks in advance

Laney79

debt_doctor

Hi,

If an unsecured creditor does not obtain a FINAL charging order before you go BR then they never can obtain one, nor can they enforce the debt by any other means.

The debt would be included in your BR as it never reached the 'status' of being secured. The order should be discharged on the grounds that the debtor is now Bankrupt.

DD

peachyprice

One word ot advice, you should have detials if the court case to make it final, I would strongly advise you to attend this hearing and tell the judge in person that you are BR and the CO cannot be enforced.

We left our OR to deal with 2 interim CO's and although one was not made final the other was. I have asked the court to remove it, who told me the OR had to apply to the court to have it removed, I have asked the OR to apply to the court to have it removed, to this day the CO for over £10k still remains.

When I first phoned the court they said I should have gone to the hearing, and boy do I wish I had. It would have been far easier than trying to get the bloomin thing removed.

Lensman_2

peachyprice wrote: »

One word ot advice, you should have detials if the court case to make it final, I would strongly advise you to attend this hearing and tell the judge in person that you are BR and the CO cannot be enforced.

We left our OR to deal with 2 interim CO's and although one was not made final the other was. I have asked the court to remove it, who told me the OR had to apply to the court to have it removed, I have asked the OR to apply to the court to have it removed, to this day the CO for over £10k still remains.

When I first phoned the court they said I should have gone to the hearing, and boy do I wish I had. It would have been far easier than trying to get the bloomin thing removed.

There should be a "extra special thanks" button, to be used for rare and very helpful posts. This is one.

Thanks Peachy :T

laney79

Thanks very much for your messages, I will sleep a lot better now knowing I have not got a charging order and the possibility of creditors forcing the sale of my home at a later date!

philnicandamy

Needs a little work though

Lensman_2

philnicandamy wrote: »

Needs a little work though

Nice post philnicandamy. Let me know when you can give thanks² with it and we're in business.

Thanks.:T

laney79

Hi Guys & Girls

Further to my original post, the interim charging order has been granted in favour of Mortgage Trust it turns out 1 day before I was made Bankrupt. I have spoken to Land Registry and their solicitors who advised they could not over turn the decision based on the reasons I disputed the order in my original post and advised I would have to attend court in April.

I spoke to the OR who is dealing with my case and they advised that I should attend the court which I was already planning to do anyway as advised by the kind posts in responses to my original post. The OR said to take a copy of the Bankruptcy Order in with me but they could not provide me with any further guidance or assistance.

The court case is 23rd April but I was not sure as to how I should word my defense to this charging order. Would anyone be able to help me with this as I need to state the facts to the court in order to prevent the final order being granted?

Many Thanks in advance!

Laney79