Charging Order? The myth

WannaBLoaded

Hi clever peeps.
what sort of percentage offer do banks take on a co after it has been in place for like 8 years? And how quickly do they act when you make an offer? Also, do they check to see if your house is on the market?

Thanks.

eggbox

What debtors will accept is extremely random. If its the Bank itself that pursued the CCJ (rather than a debt collector) they usually don't accept anything less than full payment as they can afford to sit on it for years.

However, debt collection company's will usually be more willing to agree a settlement as they only paid of a fraction of the debt in the first place?

A big factor is whether or not the CO is attracting interest. If it is then they will probably be unwilling to settle; but if not then the value of their debt is dropping (although not that much in today's low interest economy) so they may see the sense in settling for a lower amount.

But you will only know how much when you offer them a figure and they respond to the offer. Have you a % in mind you would be willing to settle for?

Rileybaby

I have not read the whole post so forgive me if this question has already been asked... I jointly own my home and I have been told that a charging order has been put on the property in 2011 for £10k of debt that was solely mine not hubbies, can they do this or would it have to be a restriction?

traceydc49

Hi Rileybaby, I'm in exact same position myself & just came on here to ask same question!! Mine is for 4000, jointly owned property. Been reading up a bit, still confused too be honest, but I think??, what we have is a restriction, rather than CO as it is a joint ownership & the debt is mine alone, help sourcrates, fatbelly! Worrying me sick, this 1 Tracey

Rileybaby

You and me both Tracy - although I'm not clear there is much of a difference

traceydc49

sourcrates & fatbelly best 1s to answer, or National debt helpline, hopefully they will b online soon, put both of us at rest, just like to know the implications, as I'm pretty sure you do as well, rest assured though, we will have an answer pretty soon Tracey

DAKOTA45

Rileybaby wrote: »

I have not read the whole post so forgive me if this question has already been asked... I jointly own my home and I have been told that a charging order has been put on the property in 2011 for £10k of debt that was solely mine not hubbies, can they do this or would it have to be a restriction?

Hello...It will be a Restriction… but they still call it a Charging Order… just to confuse things, I guess. That's why solicitors get in such a muddle when you are selling and won't transfer the property until the "charge" is paid… when there is no legal obligation to do so… You just need to inform the creditor that the house has been sold, then the creditor has to try and enforce the debt. Ha!

D45

DAKOTA45

traceydc49 wrote: »

sourcrates & fatbelly best 1s to answer, or National debt helpline, hopefully they will b online soon, put both of us at rest, just like to know the implications, as I'm pretty sure you do as well, rest assured though, we will have an answer pretty soon Tracey

The implications are not too bad…if there is no interest being applied or unless the creditor threatens you with a Order For Sale, as mine has done twice in the past few months… It's just a game to them… they don't care that you end up with anxiety and depression with all the worry of it!!:mad:

Wait for Eggbox… he will be able to offer you some excellent advice.

D45

DAKOTA45

Hi Eggbox… I have a question of my own, but I don't know if you are able to help;

My creditor, whilst threatening to take my home away, has also informed me that he is applying interest of £5.35 per DAY!!

I thought interest was applied at 8% annually..

Any advice would be very welcome.

Thanks. D45

eggbox

Rileybaby / Tracydc49


When a Charging Order is granted it is "charged" against a particular asset. If a property is solely owned (or jointly owned and both people owe the debt) then the debt can be charged against the property itself and will be registered on the deeds as an "equitable charge" in much the same way a mortgage is. This means it HAS to be dealt with when the property is sold to enable new owner registration.


In your cases, however; the property is jointly owned but only one owner owes the debt. This means the CO can only be charged against the debtors financial interest in the house (their share of the equity.) The CO, in this instance, isn't therefore allowed to be registered on the deeds as an equitable charge. But the creditor is allowed to register a Restriction on the deeds notifying any interested party that the CO exists.


As this thread explains; a CO against a joint owner/sole debtor is much weaker security for the creditor as the terms of most Restrictions only require notification to the creditor a sale is proceeding to remove the Restriction from the deeds and allow a sale to proceed. The is also no legal requirement to settle the debt at the point of sale despite uninformed solicitors still doing this.


As you will also see in this thread; whilst a CO is virtually impossible to stop, an OFS being granted by a Judge is virtually impossible to obtain where the property is jointly owned. This is partly because Judges have total discretion whether to grant the order or not, but also because there is caselaw preventing the sale of property if it is a primary or family residence.


So don't worry, ok.