Charging Order? The myth

DAKOTA45

Thank you for the link… will have a look.

Not over 70, though. D45

so_very_confused

Thanks eggbox. I will try not to worry but it is sometimes difficult. My income is shortly to take a serious downturn when I will be struggling to pay even token payments so I dread my creditors reaction to this. I thought I had avoided the possibility of bankruptcy. I would not object to a charging order.
Thanks again
svc

Choochybaby69

If a creditor with the restriction on my house made me bankrupt, would that then remove the charge from my property, because if it didn't then why do they not do this anyway, because they have nothing to lose? Also can I have a response to my previous reply, Eggbox.
Thanks, Paul.

eggbox

Choochybaby69 wrote: »

I was taken to court myself, with my Wife who is a joint owner, but she has no relation to the debt and it states restriction.They also lodged the restriction separately to the the other partner, but IF he has paid or part paid the debt, how do I find out? Also the debt is increasing at 2% per month, is there anything I can do to stop or freeze it?
The lady I spoke to from Investec said they would not attempt to force a sale, it was the solicitors acting for Universal leasing who tried that in 2010.
thanks again, Paul.

For a creditor to be charging 2% a month interest on the debt it would have to be in the contract you originally signed with them? If it was, then the only way you can get it stopped is by, either, asking Investec to reduce or cease the interest or applying to a Court you think the charge is unfair (but that would be difficult if it was in the original contract?)

eggbox

Choochybaby69 wrote: »

If a creditor with the restriction on my house made me bankrupt, would that then remove the charge from my property, because if it didn't then why do they not do this anyway, because they have nothing to lose? Also can I have a response to my previous reply, Eggbox.
Thanks, Paul.

There are various reasons creditors don't apply for bankruptcy. One of them is a reputational issue as a creditor may not want to be seen as throwing people onto the street to recover their debt?A CO secures and gives priority over other creditors (even in bankruptcy) so they see it as more "humane" and private way to collect their debt.

If the creditor with the Restriction also moved to bankrupt you, then the Restriction would only be removed if the CO it was protecting was paid off. If there wasn't enough equity in your property to cover the debt owed, then the creditor will be happy to wait as the value of your property will rise in future years (which will increase your equity)

DAKOTA45

Just wondering, also, being as it seems to be a current topic, about how you can be made bankrupt if you have no savings or assets? My equity has been reduced now that the creditor has the CO…What if there is insufficient equity, would they still attempt to make you bankrupt? D45

eggbox

Dakota

If a debtor has no assets or savings then all bankrupting them will do is incur the creditor costs?

If you have some equity or savings it will depend on who your creditor is on whether they would try to bankrupt you or not. Banks and DCA's aren't struggling for cash which is why they are able to go down the CO route and wait for their money.

But if you owed a creditor who was desperate for money, say a one man business tradesman who had done work on your house and you hadn't paid them; then they might see getting what you currently have now more preferable to waiting many years to get the whole amount?

DAKOTA45

This person is not desperate for money, I can assure you! He is a very wealthy, greedy landowner whose one ambition is to see me in the gutter at any cost. It's a personal vendetta, so not like a normal creditor situation… there is pure malice involved, unfortunately… however, there must surely be rules in place as to whether or not a person could apply to bankrupt someone who has nothing of any great value for the bailiffs to seize? They can't just do it because they don't happen to like you… or can they?

D45

eggbox

DAKOTA45 wrote: »

They can't just do it because they don't happen to like you… or can they?D45

They wouldn't have to prove whether they like you or not, just that you owe them £5k or more?

DAKOTA45

eggbox wrote: »

They wouldn't have to prove whether they like you or not, just that you owe them £5k or more?

Exactly… if my claim is struck out, the costs for that hearing will be about £8k… and he already has the CO for £30k… getting blood out of a stone, though?:(
D45