Charging Order? The myth

Jellie2015

Are you able to say whether this is still the position in relation to Interim Charging Orders/Restrictions - I have noted that the original post was in May 2009? Help would be much appreciated

eggbox

Yes the position is still the same. The only thing of any real note that has changed since 2009 is the £1000 threshold introduced in 2012 regarding to Charging Orders being sought.

neiljules

I have had a CO for the last 6 years on my property and looking at the court forms interest is being added every month.

The issue is that since the charge was granted I have had absolutely no contact from the creditor at all. I did ring them once to try to set up a payment plan but was rudely rejected and told to pay the whole amount plus interest or they were not interested.

So my question is, are they meant to send me an annual statement of interest as I have no idea how much the debt stands at now? and when in a few months I have enough saved to pay off the amount of the CO but not any interest, can I have the CO removed?

Any advice would be appreciated thanks

eggbox

neiljules

You may be able to challenge the interest being added if it shouldn't have been added when the original Judgement was made. Most CCA debts shouldn't attract any interest and contractual interest has to be in the original agreement (I'm no expert on this area but I would drop SEQUENCI a line on CAG as he is up on this subject)

Quite why they wouldn't accept you making payments to them I have no idea (and I would suggest wouldn't be looked favourably by the Courts?)? However, most company's will usually look at a discounted settlement amount to get paid NOW rather than in an undetermined time in the future.

Can I ask what the debt is for, how much it is and if the debt is registered as a CO on the deeds or a Restriction?

DAKOTA45

Hi Eggbox & neiljules…

I think the interest on my CO is about 8%… This could amount to quite a sum if I decide to wait 20 years before selling...wondering what happens if when I sell there is not enough equity to pay the original debt plus the interest...

eggbox

You can still be pursued for the amount remaining as the Judgement doesn't expire. So you have to ensure any assets aren't vulnerable if and when you do sell.

neiljules

I looked at everything last year and the interest is def payable and legal. The CO is actually a restriction. As I said tho, I would have thought they would have to notify amounts with a yearly statement. I would love to make a settlement offer but judging by their attitude last time we spoke I am not hopeful.

FYI debt was for a car loan

eggbox

What makes you certain the interest is definitely payable and legal?

neiljules

I went through all if the info last year provided in these forums and they def covered all bases legally.. the original loan agreement and the restriction were airtight.

Rockit

We have several individual Form K restrictions on our jointly owned property and are currently trying to sell the property and walk away with the equity in the property so we can negotiate with our creditors.

Just spoke to my conveyancer who I thought initially understood these restrictions. They are wanting to write to my creditors to find out what is required to remove the restrictions. There is even one creditor who has gone bust and they are saying that they need to know who now owns this debt or else they cannot write to anyone to get the restriction removed. They are saying the buyers solicitor will need these restrictions removing before they complete contracts.
Effectively they are now holding up the sale of the house!

Can they do this?