Charging Order? The myth

fatbelly

https://forums.moneysavingexpert.com/discussion/comment/81951372#Comment_81951372

You say 'had' ccjs. What happened? Were they more than 6 years ago? Did you pay them off?

tksnota

Not paid waiting for them to drop off on my file

eggbox

tksnota

Once a creditor has a CCJ they can then apply for a Charging Order (usually up to six years after being granted the Judgement) to be attached against any asset you have for their debt.

So it will all depend on whether the creditor (A) finds out you have bought a house and (B) feels that they want to go to the trouble of applying for a Charging Order on the property. Either, may or may not happen as its purely down to those two factors?

But be aware that if you buy the house in your sole name, then any CO sought will be placed as an equitable charge on the deeds (rather like a mortgage) and will have to be paid off when you sell the house.

So you may want to think about that as the details explained on this thread are only possible if the property is jointly owned.

tksnota

if the property is paid in cash and jointly owned will equitable charge applies rather than restrictions?

sourcrates

https://forums.moneysavingexpert.com/discussion/comment/81952686#Comment_81952686

No, the other way around.

tksnota

I’m raising a question while waiting for my friend to register in the forum. I will share the link to him

Context: He is a British that managed to bring his son before turning 18 years old. Used his father’s address when signing agreements to purchase stuff on credit

Son left father’s house at 20 years old not in good terms. No idea about the whereabouts.

Son’s UK Visa will be expiring and father has no intention to renew.

Father get LBAs from son’s numerous agreements because of non-payments

Are the agreement unsecured?

What can the father do to address the LBA?

Will bailiffs be visit father’s house? If so, what will he needs to do if it happens?

Will son be prevented to leave UK if pending CCJ?

Thanks. tksnota

eggbox

tksnota

What's needs to understood is, firstly, whether, or not, the "son" in your post is a joint owner of property with the "father" in the post. And secondly, if the "father" acted as a guarantor for any of the son's loans?

If the son isn't a joint owner, then there won't be any Charging Order to deal with. But if he is, a CO could be sought against his share of the property.

The same applies on whether or not the father acted as a guarantor for the loans. If they didn't, then the father has zero responsibility for any loan in his son's name. If they did, however, then creditors could come after the father for the debt as he would be equally responsible for the loans.

So, the above needs to be clarified to understand your friends position. However, rest assured that having a CCJ doesn't prevent anyone leaving the UK.

tksnota

What will the father needs to do if bailiffs / debt collectors come knocking to his house asking about the son

Do the father needs to ignore the LBA because the son’s is not living in the father’s property and don’t know the whereabouts?

sourcrates

The answers to the post above, really determine the answers to your latest question.

Just because a CCJ is granted, does not mean it will be enforced, and if the father is not a guarantor of any of his sons debts, and the son has no financial interest in the fathers house, then its a simple case of not my name, not my debt, the father can just ignore any collection activity.

It would be rare for a bailiff to be engaged, and a debt collector is nothing to be concerned about, neither has power of entry, debt collectors have no power at all, and a bailiff can be kept outside by a locked door.

But if either should call, and the above applies, the father can just tell them the son does not live here, and to please leave, thank you.

Diaz09

This is spot on - the distinction between a full charging order and a restriction is huge but rarely explained properly. What really frustrates me is how solicitors and debt collectors often use threatening language about "charging orders" without clarifying that with joint ownership, they can't actually force a sale without your partner's agreement or a messy court application. The restriction just means they get notified if you try to sell, but it doesn't give them the same teeth as a proper charging order on solely-owned property.