Charging Order? The myth

eggbox

chkymonky said:

Hi All, 506 pages. WOW its been a while since I visited the site.

eggbox Well done to keep the thread alive and hope of forum members. Sincere Best wishes to you
Was wondering what if you havent paid the Debt Collector anything since the judgement and its been 14 years. can it be statute barred? 
Thanks

Unfortunately as in Yorkshire Bank Finance Limited v Mulhall (2008) the Court ruled that once a creditor has a charging order against you, there is no time limit within which they must apply for an order for sale. Therefore, a CO is not Statute Barred

ES19901990

Hi all
I have tried to read through this thread but there is so much it is jumbling my mind.
I have a joint property with my partner both own 50%. I have purely myself unsecured debts. If the creditor wanted to pursue my property what would be the situation as it is joint owned? If they are granted a charging order or restriction can they force a sale as none of this is my partners fault? Or does a restriction just mean if I did sell they would get paid but cannot force it?

sourcrates

ES19901990 said:

Hi all
I have tried to read through this thread but there is so much it is jumbling my mind.
I have a joint property with my partner both own 50%. I have purely myself unsecured debts. If the creditor wanted to pursue my property what would be the situation as it is joint owned? If they are granted a charging order or restriction can they force a sale as none of this is my partners fault? Or does a restriction just mean if I did sell they would get paid but cannot force it?

The answer remains the same as in your other threads, a restriction, if granted, would just sit on file until either the debt is re-paid by other means, or the house is sold, the lender with the restriction is not going to force sale of the property.

eggbox

ES19901990

Where a Charging Order is granted against only one of the owners of jointly owned property, the creditor can only register notification of that CO with a Restriction on the deeds. Once a CO is granted is does give the creditor the power to pursue an Order For Sale. Which is an application to the Court to give the creditor the legal power to sell the property to recoup their debt, regardless of the non debtor owner. However................

History shows that that creditors rarely use this option for a few reasons. The main one being that a judge hearing the application has total discretion on whether to grant the order and, the last lime I looked it was only 4 in 1000 applications granted. This is mainly due to the property being the debtor's family home and usually because there are children involved. 

So the stats show the creditor they will be wasting their time and money pursuing an OFS so they don't bother. This is borne out by this thread (I think I'm right in saying) has only ever reported one instance of an OFS being pursued and that was also unsuccessful. So I wouldn't lose any sleep over it.

sourcrates

The stats on orders for sale are no longer officially kept due to the fact so few are granted.

There is a massive difference between what a creditor can do legally, and what they will do, due to your circumstances and the discretion applied by the judge in these cases, all your debts are of the unsecured and non essential variety, non of what you perceive here is going to happen.

ES19901990

Hi all, thank you all for your help I feel much clearer about n it now.

shufmuff

hi please help, i have been told i have a CO on a debt in only my name which it was but when i look it is this

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

without a certificate signed by the applicant for registration or their

conveyancer that written notice of the disposition was given to

it was put on in 2010 when it was a joint mortgage, the house sold in 2016 or 2017 but monies are being held in court funds,, about 6k, what can i do about it as i have tried couple companies who really dont seem to want to take it up. thanks

eggbox

shuffmuff

Could you explain a little more as you say the house "sold in 2016 or 2017"? Who owns the house now?

shufmuff

the house sold at auction in 2016.
the original unsecured debt was solely in my name, but the mortgage was a joint account.
 i was made aware only when i was expecting some money from sale, that i had a charging order for this debt and i would not be able to recieve this money as it was due to the creditor and placed in court funds
 when the house was sold the solicitor stated he tried to contact creditor on several occasions and had no response. i had 2 ccjs which was paid out of proceeds with no issue.
i read a few post here that they cant do charging orders for joint account for single name unsecured debts which is why i thought to ask here.
 i really have no idea what to do and would be very grateful for some advice, this is something i keep cming back to every year lol, many thnks in advance. 

shufmuff

why would the creditor not take the money?, it makes me think something is not right.