charging order

torty

heres my problem, having split with her, we jointly own house valuesd at 110k owe 103k, i have 2 charging orders against me, one for 5k and one for 8k, i really need to get something from this, she is gonna buy me out i believe for 110k, leaves about 5k after solicitors fees, any ideas

ALIBOBSY

I thought charging orders are against the property not the individual?
Are you certain they are charging orders and they were applied to the property?
Given that there is virually no equity you may be best to declare bankcruptcy.
You will not be coming out of this with any cash thats for sure.
You really need some expert advice, contact one of the debt charities asap.
good luck
ali x

torty

ALIBOBSY wrote: »

I thought charging orders are against the property not the individual?
Are you certain they are charging orders and they were applied to the property?
Given that there is virually no equity you may be best to declare bankcruptcy.
You will not be coming out of this with any cash thats for sure.
You really need some expert advice, contact one of the debt charities asap.
good luck
ali x

bankcruptcy is not an issue i want would rather negoiate if poss

zzzLazyDaisy

If you are joint owners, then you are both entitled to an equal share of the net equity once all other debts are repaid, which means that at best you are only entitled to half the £5k balance.

But in fact, if there are charging orders against the property in respect of debts that were incurred in your sole name, although they must be paid off before the house can be sold or remortgaged, she is entitled to insist that those sums are taken out of your share of the net proceeds, or to pursue you for the money.

I expect she can whistle for that, but I can't see why she would pay you a penny in those circumstances.

Bottom line - charging orders on the house must be cleared before any sale or re-mortgage can go through - that is the point of a charging order, because, from the lenders point of view, experience has shown that without it you are unlikely to pay your debts

coffeedog

Yes, a charging order attaches to the property and must be paid off ( after any mortgage) if the house is sold. If there is nothing left after that, you will both walk away with nothing. If the property is jointly owned generally you split any money left over 50/50.

Alternatively, could you agree to wait until house prices rise again before you sell to avoid there being a shortfall on the amounts owed onthe charges?

If not, as the charges are your debts they will chase you for the money unfortunately. Perhaps try and speak to the CAB or get some free advice from a solicitor before you do anything.

Hope things work out for you.

silvercar

You need to rethink.

A property can't be sold without clearing all the charges on the property, icnluding the mortgage.

If you have a mortgage for 103 and 13k charging orders, you need to find 116k plus the legal costs plus estate agent fees. Unless you both can come up with this money between you, the property can't be sold.

zzzLazyDaisy

Ah - I misread the OP - I understood that the £103k owed included the charging orders.