Charging Order? The myth

eggbox

makesense_11 wrote: »

i have recieved a charging order and the debt is in my name and the house if in joint name (mortgaged with no equity) Can they apply for a charging order and is there a letter I can send them before I go to court as mine is from a couple of missed payments on a ccj. And another thnig do i need to go to court or can i write to them .

One missed CCJ payment is all the creditor needs to go after the CO and the Court won't take any notice of a letter regarding what's happened regarding the missed payments.

You don't need to go to Court but it is in your interests to do so to at least try and stop the CO being granted and give your side of the events regarding why the payments have been missed.

You can also ask the Court,should the CO be granted, to bar an OFS being pursued by the creditor providing you keep up repayments in the future.

egir1566

Hi Everyone,
I dont have anything useful to contribute, i just wanted to say thankyou to all who have posted on this thread. The information given has been very helpful to me and has made me feel a whole lot better about the situation i find myself in

helpappreciated

eggbox wrote: »

Helpappreciated

Thanks for the update.

Is there any chance you can update us on any of the details of what you have been coming up against and what Solicitors have been telling you?

Sorry for silence - our sale has fallen through for the second time. We shall keep you all informed of any progress.
:mad:

eggbox

helpappreciated wrote: »

Sorry for silence - our sale has fallen through for the second time. We shall keep you all informed of any progress.
:mad:

Helpappreciated

Thanks for the update.

Just to clarify is it because of your Restrictions or just people pulling out for other reasons.

If it's the former can you update us what the problems you are facing?

helpappreciated

Hi again.
No not because of our problems - health and financial problems of buyers.
Let's hope 3rd time lucky

eggbox

helpappreciated wrote: »

Hi again.
No not because of our problems - health and financial problems of buyers.
Let's hope 3rd time lucky

Ok well let's hope it's third time lucky!

Has your Restriction been mentioned by either of the buyers or either Solicitors at all?

iwillgetthereintheend

thanks to all that assisted me last month with my dilemma and clarified the rules on restrictions on jointly owned property and sole debt, it gave me peace of mind to a certain extent........

I have a few questions:

1.Does the "restriction" change into a charging order if the property with the restriction on is no longer my main residence?

2.if its no longer my main residence can the creditor know this and go to court and ask the judge to force me to sell?

3. if the creditor forces me to sell and there is a restriction and they know obviously about the sale going through can they get there money from the sale proeeds? (as i am assuming the contents of this thread is about the creditor not having knowledge of the sale until its too late!)

any advice, would be appreciated!

eggbox

iwillgetthereintheend wrote: »

thanks to all that assisted me last month with my dilemma and clarified the rules on restrictions on jointly owned property and sole debt, it gave me peace of mind to a certain extent........

I have a few questions:

1.Does the "restriction" change into a charging order if the property with the restriction on is no longer my main residence? A Restriction is a notification on the LR of a Charging Order made on your "Beneficial Interest" (or your share of the properties equity) That won't change just because you don't live their.

2.if its no longer my main residence can the creditor know this and go to court and ask the judge to force me to sell? I doubt it would be difficult for a Creditor to confirm this if it got wind of your situation. But it would depend on the circumstances of why it was not your main residence whether or not they might want to go for an OFS? If you have split up with the joint owner and there are, for example, still children living at the property with the restriction they wouldn't. But if it's not your main residence and their is no compelling reason for a Court to deny an OFS then it's highly likely they might. If it's not your main residence because you own another property then I would have to say a creditor, if the debt was large enough, would definitely look at your situation as one they could get an OFS on.

3. if the creditor forces me to sell and there is a restriction and they know obviously about the sale going through can they get there money from the sale proeeds? (as i am assuming the contents of this thread is about the creditor not having knowledge of the sale until its too late!) A creditor can't force you to sell the property that has to be decided by a Court. But if the creditor is granted an OFS then they take possession of the property and they are responsible for selling it. You are then returned any excess proceeds once all debts are settled. If, however, you sell before a creditor has applied to the Court for an OFS, then you only have to provide evidence the creditor with the Restriction has been notified of the sale. You are, then, not legally obligated to pay the creditor from the proceeds from your sale. The debt remains but it is up to the creditor to pursue a claim which it may or may not do.



any advice, would be appreciated!

It would be helpful if you could expand on why it's not your main residence, though.

iwillgetthereintheend

thank you very much eggbox for the clarification.....I may have to move out and into rental as i cannot afford my mortgage at the moment due to ill health so i was just wondering what will happen to the restriction etc and will it change anything.....

Lillie9_2

Hi everyone,

I have a house sale going through and have found this thread most helpful to my predicament.

My ex-husband has a large debt with HSBC and that debt - an unsecured loan - is now subject to a charging order on my house. The house is still in both of our names. My ex-husband's debt is soley in his name.

So am I right in thinking that when the house sells, my solicitors do NOT have to pay HSBC directly??

I have tried to explain this to my solicitors but they have told me that they ARE obliged to pay HSBC directly.

If my solicitors are right then I will have to pull out of the sale

Please help!