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Charging Order? The myth

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Comments

  • Coinmachine
    Coinmachine Posts: 225 Forumite
    Eggbox its been a long while since I posted, not sure if youll temember from the posts quoted in this letter? I didnt hear anything for ages then last month received claim forms I filled these in and today have received a Judgement for Claimant acceptance form this states that Nationwide have accepted my offer of payment which ais the same monthly payment I have been making anyway on my DMP plus court costs of £410 added to the outstanding debt. Im confused, is this just the first part and now the charging order procesd will continue?
    Eggbox I have now heard from Shoosmiths and a bit confused.

    There is no reference to earlier Nationwide letter re charging order it simply states that I have failed to pay outstanding amounts or agree repayment terms with Nationwide - nonsense when I have been in a DMP for a year.

    It states the full sum owed is now payable immediately and and to contact them with my repayment proosals within 14 days or court action.

    I willcall stepchange tomorrow but grateful for your views.
    I'm a greenfield sight for sore eyes, and sore eyes are just needing the light, the shapes, and the shadows of the space we share, before it splits into Thin Air.
  • eggbox
    eggbox Posts: 1,829 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    They can't get a CO without a CCJ so it, probably, may well be the first step towards that? However, you will receive notification if they are proceeding towards a CO (sadly the law has now changed and they can apply for a CO even if you are up to date with repayments.)

    If they do proceed you MUST attend Court to request that no CO is made based on the DMP that you have been paying. You simply state if a CO is made it would prejudice your other creditors as you would stop paying them to clear the CO debt (whether you would or not is irrelevant.)

    Can I ask what the level of equity there is in the property?
  • Coinmachine
    Coinmachine Posts: 225 Forumite
    Hi eggnox around £100k equity they have previously stated that they do not intend to force a sale.
    I'm a greenfield sight for sore eyes, and sore eyes are just needing the light, the shapes, and the shadows of the space we share, before it splits into Thin Air.
  • eggbox
    eggbox Posts: 1,829 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    That's more likely as they know they wouldn't achieve a sale. But, anyway, something for you to consider.

    I recently dealt with a case where, faced with the same predicament, the owners made a legal charge in favour of the non indebted owner to a value roughly twice the size of their current equity.

    As this charge was registered prior to the CO (which did follow) it takes priority if and when the house is sold. This option shouldn't be taken lightly as it is legally binding and fraught with danger if the partners fall out. But it is an option should protection be needed.
  • Coinmachine
    Coinmachine Posts: 225 Forumite
    Thanks I am just a bit confused that the letter states Nationwide accept the offer of payment so if they are accepting it why would they need to go for a charging order as well?
    I'm a greenfield sight for sore eyes, and sore eyes are just needing the light, the shapes, and the shadows of the space we share, before it splits into Thin Air.
  • eggbox
    eggbox Posts: 1,829 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    For extra security if you stop (or can't pay).

    And because as far as the Courts are concerned, its first come first served as far as CO's are concerned.
  • Taffybiker
    Taffybiker Posts: 927 Forumite
    edited 5 July 2015 at 9:59PM
    I wonder if any of you experts could help me understand my own situation.
    My ex ran up some massive debts in her name only, originally unsecured, but it led to a restriction being placed on the property which was jointly owned.
    Finally, we separated and I bought another house to live in via a second mortgage. I began divorce proceedings.
    She stayed in the ex marital home but eventually moved out taking everything of any value and leaving unpaid bills behind her.
    A second restriction was added against the property.

    Long story short; the judge awarded me the house in settlement proceedings, but these restrictions are still on the title. This is not my debt, and my ex no longer has any interest in the property.

    My solicitor has written to the creditors, one of which has replied by saying the title may pass to just me but the restriction will remain.

    What is the purpose of keeping the restriction against the property?

    Do I have a case to have them removed as the debt is not mine, but 100% of the house now is?

    If I managed to remortgage, would that help?


    I hope someone can make sense of this.
    Try saying "I have under-a-pound in my wallet" and listen to people react!
  • eggbox
    eggbox Posts: 1,829 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    If your ex has been removed from the deeds you need to apply to the Land Registry (using the appropriate RX form) to have the Restrictions removed on the basis they have become "superfluous".

    This is on the, obvious, basis that if your ex no longer has any Beneficial Interest in the property then there cannot be a CO against any such interest.
  • Taffybiker
    Taffybiker Posts: 927 Forumite
    Thank you eggbox. Her name hasn't been removed yet as my solicitor seems to think we need permission from her creditors to do so. I don't fully understand this. I thought that was already taken care of in court.
    Try saying "I have under-a-pound in my wallet" and listen to people react!
  • eggbox
    eggbox Posts: 1,829 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    You can ask the creditors to withdraw them but why would they?

    The Court decision, however, is what you need to supply details of to the Land Registry. This will allow them to remove your ex from the deeds.

    Once that occurs then you need to apply to the Land Registry to have the Restrictions removed as superfluous on the basis that they are against a person who no longer has any interest in the property.
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