Charging Order? The myth

Keysa

Morning Dakoto


The Spanish apartment is in my name bought pre marriage. The UK home is in joint names. We have an interim CO against both of us and it now goes before the judge on 14th March to make it full or with conditions or thrown out.


Also the LR has an application for a restriction on our property.


Yes the UK home has enough equity to pay off the Spanish mortgage BUT we don't want to own it outright or live there full time, my wife doesn't even have a passport to live there . We still want to stay in our UK area so that the 2 young kids are settled. I'm a British citizen who worked abroad helping others.


I don't know what powers if any the judge has to help us make an agreement with the Bank, ie pay off the arrears ( £ 4,500 ) and also a lump sum of say 15/20K of the outstanding loan, from the sale of our UK home.


We would down size to make this happen, but if the Spanish bank want the whole loan repaid, approx. £76,000, then we are then in rented with a Spanish home fully owned but no good for our family. To sell it is expensive and as the market is recovering, not the best time. I doubt we could get another mortgage on it.


Finally; We would consider calling off the UK sale and staying put in our home but worry what interest charges the bank might apply to the debt.


We've come from a war zone and lost family ( Ukraine) the reason for the debt, but this is also very difficult.

Still the kids went into school with a smile

hiny

Is this true even now in 2016??

DAKOTA45

Keysa wrote: »

Morning Dakoto


The Spanish apartment is in my name bought pre marriage. The UK home is in joint names. We have an interim CO against both of us and it now goes before the judge on 14th March to make it full or with conditions or thrown out.


Also the LR has an application for a restriction on our property.


Yes the UK home has enough equity to pay off the Spanish mortgage BUT we don't want to own it outright or live there full time, my wife doesn't even have a passport to live there . We still want to stay in our UK area so that the 2 young kids are settled. I'm a British citizen who worked abroad helping others.


I don't know what powers if any the judge has to help us make an agreement with the Bank, ie pay off the arrears ( £ 4,500 ) and also a lump sum of say 15/20K of the outstanding loan, from the sale of our UK home.


We would down size to make this happen, but if the Spanish bank want the whole loan repaid, approx. £76,000, then we are then in rented with a Spanish home fully owned but no good for our family. To sell it is expensive and as the market is recovering, not the best time. I doubt we could get another mortgage on it.


Finally; We would consider calling off the UK sale and staying put in our home but worry what interest charges the bank might apply to the debt.


We've come from a war zone and lost family ( Ukraine) the reason for the debt, but this is also very difficult.

Still the kids went into school with a smile

Hi Keysa… I'm not sure what to suggest… The ICO will most likely be proceed to a FCO, which will then allow for your creditors to chase for enforcement of the debt.

I hope that EggBox, who is much more knowledgeable than myself, will be able to offer some advice.

Have you tried to object to the ICO?

D45

eggbox

Keysa wrote: »

There was no reply despite asking and a ccj and interim CO was issued on our jointly owned UK property. The final hearing is on 14th March..

How was the CCJ defended and what was the Judgement issued?

Keysa

eggbox wrote: »

How was the CCJ defended and what was the Judgement issued?

Hello Eggbox,


A judgement or order given on June 12th 2015 in Spain and ordered the defendant ( 'The Judgement Debtor') to pay money to the judgement creditor. ......This was not contested because I wasn't aware of it.


The amount owing is £75,629.99 ( converted to pounds )


An interim charging order was obtained at the Norwich County Court in respect of property ******
Next court hearing will be on March 14th when the Judge will decide whether to make the CO , full, with conditions or thrown out.


We intend to ask for conditions because we have 2 young children and want them to have the house protected from a forced sale. We also are trying to negotiate with the bank to pay part of the debt off from the proceeds of the sale of the UK house which we have a buyer for.


We also ask that the Bank in Spain not to sell the apartment in the auction as we want to keep it and have the opportunity to recoup some of the money eventually, which I originally put in as a deposit, i.e. 60%


I guess we need the banks cooperation to sell the UK house and not frighten the buyers off.


I've asked the bank to postpone the court case to give us chance to negotiate.


Finally, If the judge puts conditions with the CO because of our children and we can stay there until they finish their education, what might the final interest be on the house when its sold to pay off any debt. I can't imagine that it would be favourable to us?


Thanks.

eggbox

Keysa wrote: »

A judgement or order given on June 12th 2015 in Spain and ordered the defendant ( 'The Judgement Debtor') to pay money to the judgement creditor. ......This was not contested because I wasn't aware of it.

If this is the case then you have grounds to Set Aside the Judgement as you were unable to defend the claim. In the UK you make an application using form N244 but you will have to investigate which form to use in Spain?


If you are going to do this you need to contact the Court where the FCO is being heard immediately to request they postpone the hearing as you have made an application to set aside the Judgement (but can still make an application to set aside if they refuse.)


But be assured that with children living at home your property in the UK won't be subject to an OFS a it wouldn't get granted with the protections in place (and the bank won't be looking to ask you to sell they just want security for the debt.)

hiny

Hi regarding the tact that a charging order cant be made on joint property.i want to ask im divorced hv 3small kids. I hv asked court to force sale without ex permission as cant contact him and i cant affird mortgage.i hv a debt and charging irder going on 6april at court.
Does this mean if court allows sale i can sell and i dont hv to pay the charging order?but wont they still come after me?
And is restriction still on new buyers register?

eggbox

It most likely depends on the order of the hearings? If the CO hearing is before the OFS hearing then it may be difficult.


But you can always make the Judge at the CO hearing aware of the impending OFS hearing and he might defer the CO pending the outcome of that hearing?


If the creditor fails to register a CO they still have a CCJ in place to use for other enforcement methods. But whether they bother to do this is dependant on whether they feel you are worth pursuing or not?

DAKOTA45

Hey, Eggbox… Another oversight by the court… apparently, the file is not still with the Judge as I was told by court staff last month… The Judge has already assessed my application and there will be a hearing in June which will take into consideration my defence/counterclaim in relation to the creditor's interference with the sale of my property, before making the decision whether or not to allow my set aside. Sounds promising! I have been asked to submit a skeleton argument, so here we go again… Thanks for all your help and advice… so very much appreciated… I will be back to let you know how things go. Wish me luck! D45

eggbox

Hi Dakota it does sound promising so good luck!


But its now crucial to use the time between now and then to get all your evidence together to confirm the facts of what happened. It won't be enough to just say what he did you have to prove the evidence of what he did to cause the collapse of the sale.