Charging Order? The myth

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  • tra12
    tra12 Posts: 18 Forumite
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    hi so if u get a charging order and sell ur home, as long as you get a solicitor who nows about these restrictions u dont have to pay any of the dept even out of hes share of the property, whos dept it is is this right?
  • blueback
    blueback Posts: 78 Forumite
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    You need to ensure the solicitor knows the law on CO and restrictions. They MUST act in your interest and leave the minimum ammount of time nescessary to inform the creditor of the sale and provide an undertaking, which is legally binding and a serious offence to break, that the restriction will fall away and becaome void on competion to the buyers solictior.

    Wait for completion and the funds hit your account. Of course, there will be some that act so quickly in order to recall the debt although my solicitor told me that this was very rare indeed.
  • bradfordlad
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    you say about the property being jointly owned - doesthis still apply if the mortgage is in joint names, as of course the mortgage terms have the "jointly & severally liable" clause in them.

    To make myself clear - would it be a restriction (rather than a CO) if the house is jointly owned, and the mortgage is in joint names.

    cheers

    bl
  • blueback
    blueback Posts: 78 Forumite
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    The CO / restriction has nothing to do with the mortgage

    Joint owned mortgage + joint owned debt = full charging order

    Joint owned mortgage + individual owned debt = restriction

    FUll charging order = equity automatically goes toward paying the debt

    Restriction = creditor has to apply to the court to obtain money

    If your solicitor informs your creditor no more than 14 days before completion they have only a very slim chance of making the deadline. It would mean the person opening the letter to send it straight to legal and the cogs turning faster than their brains!

    Hope this helps
  • JES_F1
    JES_F1 Posts: 753 Forumite
    First Post First Anniversary Photogenic Debt-free and Proud!
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    What about a joint-owned property owned outright (i.e. with no mortgage) and individual debt? Is that still a restriction rather than a full charging order?
    Debt Jan 2008: £45,566. *** June 2013: DEBT FREE! ***
    Paid back just under £50,000 due to some interest added.

    Dealt with my debt through a Step Change
    (CCCS) DMP.
    DMP Mutual Support Thread Member #240.
  • blueback
    blueback Posts: 78 Forumite
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    The restriction is placed on the land and has nothing to do with the mortgage so the same would apply.

    I am not a solicitor so check anything I say with them first.
  • Miss_Poohs
    Miss_Poohs Posts: 630 Forumite
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    Does this apply in Scotland too?
    Don't try to keep up with the Joneses - Drag them down to your level - it's cheaper . :p:D
  • blueback
    blueback Posts: 78 Forumite
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    No idea i'm afraid, but you could just call land registry and check it out
  • AMBERSHADOW
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    Thank you for bringing this back to the top of the forum.. I believe there are loads of people thinking Creditor's can take our house, and without this knowledge you have provided we would possibly let them

    thank you
  • blueback
    blueback Posts: 78 Forumite
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    I am sure that there a are a few people who have sold their properties and seen their proceeds hit their bank accounts instead of the creditor.

    I just hope many more do before they change the law as they will definately do.

    I am so gald that Northern Rock took the Charging Order in the first place because I am now saving, have no debts and have over £90000 unenforceable.

    I would of continued in complete ignorance to be shackled in debt forever and paying 800 a month into a phony DMP.

    My CRA file has gone from 21 pages to 7 and I have won £oooo,s in compensation all thanks to my solicitor and this site. it does take time, in my case just over a year.

    Keep fighting, in fact it not fighting, you only have to write a few letters and stay in control.

    Good luck all
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