Charging Order? The myth

Andy601

Ok here goes.
I purchased a property in 1997 (joint mortgage). We seperated in 1999 and my ex remained in the property and I assumed (wronglry) that I would be removed from the mortgage.

I then went on a spending spree and lived well beyond my means. In 2007 I was issued with a CCJ for the debt which stood at 22k. I then made the minimum payment with the debt now at 32k,

I have since found out (head in the sand) that a charging order was applied

I have taken advice around bankruptcy but have been informed that this is not the option to go down as it is now a secured loan. I have instead been told not to worry about it as the loan is secured against the propery and will be cleared if sold.

Does anyone else have any experience of this as my head is spinning from all the websites

eggbox

Andy601

The creditor has been able to obtain the Charging Order concerned as you were still registered as a joint owner of the property at the time the CCJ was registered against you (whatever the reason why this was, given the time that had elapsed, is obviously a matter for you and your ex and how they feel about it?)

But the fact you were still registered has enabled the creditor to attach his CO to your share of the property. Bankruptcy won't remove the CO as they are excluded from bankruptcy proceedings as the debt has already been secured?

However, the CO will only have been able to have been registered on the deeds by way of a restriction as the property is jointly owned. So, as this thread advises, there are options when selling?

And the advice you got not to worry as the debt will be settled when the property is sold is correct. The creditor won't be able to obtain an order for sale as the house is a primary residence.

Routerman

Re my earlier post (page 203) on TBI charging order, I enquired on one of the online solicitors sites and the opinion seems to be that 8% should have been the interest rate not 12%,unfortunately it is now far too late to go back to the court apparently.


This still doesn't answer the question whether or not a debt of over £8000 is covered by the 2006 modified CCA but I'll leave that to others to debate.

R

eggbox

Routerman

Its never too late to go back to Court that's just lazy advice from the Solicitor? I won't kid you it won't be an easy task but if you are being charged interest and a substantial amount of debt is accumulating; do you have anything to lose by going back to Court?

The debt will be regulated by what was in force at the time the agreement was taken out. As long as that was after 1985 then £8,000 is regulated.

"The current purpose of the CCA is to protect consumers when entering into small- to medium-value credit agreements. When introduced, it covered most credit agreements up to a financial limit of £5,000, but this was increased to £15,000, in 1985, and to its present limit of £25,000 in 1998; on both occasions to reflect inflation."

Taken from below section 3.56
https://webarchive.nationalarchives.gov.uk/20090609014342/http://www.berr.gov.uk/files/file23663.pdf

Routerman

Thanks Eggbox, I am debating whether or not to just contact TBI and quote the relevant law to them to see what response I get.


Had a look at the list of court forms, N245 doesn't seem suitable in this instance and there doesn't seem to be any other appropriate one.


The principal has almost been paid off but the interest of c 6k remains, we may be selling in the next year or so, depending on the market, it would be nice if we could overreach their order and put a new property in the kids names.


I did wonder about entering a new county court claim against TBI to force them to write off the interest, don't know if that's possible though.

eggbox

It's form N244 you require as you will be requesting a hearing to set aside or vary the Judgement

Routerman

Thanks again Egg, missed that one.

The_Hunter

Finding a solicitor that can deal with a restriction is not easy..... I know recommendations are not allowed to be posted on the forum, but a PM would be nice if anybody can help.

Jackie235

His guys, I have been an idiot and don’t know where to turn, help would be much appreciated.
I have received a CCJ from creation financial services via shoosmiths solicitors who are very difficult to deal with, they have gone for a charging order over my property which I own with my wife.
The debt is solely in my name and we have not come to agreement yet as to how much I have to pay back they have just gone for the order
I received notification from land Registry as below;
Dated 3rd July 2019
B136(CO) form
Restriction: No disposition of the registered estate, other than a disposition by the proprietor of any registered charge registered before the entry of this restriction, is to be registered or their conveyancer that written notice of disposition was given to creation consumer finance limited c/o shoosmiths, being the person with benefit of an interim Charging Order on the beneficial interest of ....... made by the county court money claims centre on 25th June 2019.
I need to object before 12noon on 24Th July

Ok so my wife knows about the ccj and we have nearly broken up over it as I didn’t tell her about any of it until she opened the CCJ LETTERS, we have a child and I am at my wits end, we are selling the property have an offer and it’s with solicitors due to complete next Friday 19th July, we have some equity in the property that is going to be used to pay for our new house which we have converted, I don’t know what to do please help - if the money in the house approx 50k is swallowed up to pay my debt of approx 30k then I will be looking for a new place to live on my own as my relationship is sure to break down.

Our solicitor dealing with the sale thinks we will be in breach of contract if we go ahead with the sale and claims to know nothing about the info from LR containd in this thread. Can any one help I’m desperate

Land_Registry

Jackie235 wrote: »

His guys, I have been an idiot and don’t know where to turn, help would be much appreciated.
I have received a CCJ from creation financial services via shoosmiths solicitors who are very difficult to deal with, they have gone for a charging order over my property which I own with my wife.
The debt is solely in my name and we have not come to agreement yet as to how much I have to pay back they have just gone for the order
I received notification from land Registry as below;
Dated 3rd July 2019
B136(CO) form
Restriction: No disposition of the registered estate, other than a disposition by the proprietor of any registered charge registered before the entry of this restriction, is to be registered or their conveyancer that written notice of disposition was given to creation consumer finance limited c/o shoosmiths, being the person with benefit of an interim Charging Order on the beneficial interest of ....... made by the county court money claims centre on 25th June 2019.
I need to object before 12noon on 24Th July

Ok so my wife knows about the ccj and we have nearly broken up over it as I didn’t tell her about any of it until she opened the CCJ LETTERS, we have a child and I am at my wits end, we are selling the property have an offer and it’s with solicitors due to complete next Friday 19th July, we have some equity in the property that is going to be used to pay for our new house which we have converted, I don’t know what to do please help - if the money in the house approx 50k is swallowed up to pay my debt of approx 30k then I will be looking for a new place to live on my own as my relationship is sure to break down.

Our solicitor dealing with the sale thinks we will be in breach of contract if we go ahead with the sale and claims to know nothing about the info from LR containd in this thread. Can any one help I’m desperate

eggbox is far better placed to advise you on what to do here

All we can do is suggest that you draw your solicitor's attention to a) the wording of the restriction and b) our Practice Guide 76 section 4 paragraph 3 and how a form K restriction is automatically cancelled once it has been complied with on registering a transfer of the registered estate for valuable consideration for example presumably the sale by the two of you to .