Charging Order? The myth

helen83

I owe santander £7,448 for a car loan 4yrs ago. i enetered into my DMP last march and have never missed a payment. however santander applied for ccj last august. i attended the hearing in november where a forthwidth order was granted and tbh i though that was the last i'd hear as it was so long ago.

i have just received an interim charging order in the post this morning and have to attend the hearing 4th july!! I'm absolutely terrified i'm going to loose my home i have 3 children aged 4,4,2 and the debt is in my name and house is in joint names with my husband. Please help any advice at all would be appreciated!!

i should also add that the dmp is currently for 15years

what i really want to know is how likely am i to loose my house?? i have no plans to sell in the future anyway as i couldn't get another mortgage coz of the debt, i don't want to end up homeless with 3 children!

eggbox

helen83

First of all you aren't going to lose your house as all that is happening is Santander is trying to gain some security (and priority) on the debt they are owed from you.

More will be explained but can I just ask why Santander went for a CCJ (as you were in a DMP?) and what was said in Court by the Judge when you explained that you were in a DMP?

helen83

eggbox wrote: »

helen83

First of all you aren't going to lose your house as all that is happening is Santander is trying to gain some security (and priority) on the debt they are owed from you.

More will be explained but can I just ask why Santander went for a CCJ (as you were in a DMP?) and what was said in Court by the Judge when you explained that you were in a DMP?

the judge said the couldn't perform any other form of execution other than a charging order without the courts permission, and i think they went for the charging order as they objected to the rate set by the court under the length of time it would take me to pay it back!

eggbox

helen83

That is most likely the reason why but here's why you don't worry. Firstly, it IS most likely that Santander will get a Charging Order on your property as they are hugely difficult to stop. But you must attend the CO hearing to try and stop Santander obtaing one by explaining you ARE in a DMP and that granting a CO to santander would be unfair on other creditors in the DMP. Don't hold your breath but you MUST try as it's worth a shout.

Secondly, because your debt is solely owned but your property is jointly owned; Santander won't be able to register the Charging Order on your house (called an Equitable Charge similar to a mortgage). Instead, it will be made on YOUR Beneficial Interest (or your share of any Equity in the house). Santander are also only allowed to register this Charging Order against your Land Registry details with what is called a Form K Restriction.

If you read through this thread you will see that this type of Restriction is very limited in the power it holds. Santander would also have no chance of trying to force you to sell your house, either, as your Childrens rights to stay in the house far outweigh Santanders debt owed on this matter.

Sparklyfairy

Helen, chin up - you are in v. good company here . I can assure you these are the darkest days, but listen to Eggbox's advice, he is spot on about it all. X

helen83

Thanks everyone, i feel a bit better now x

eggbox

As Sparkly says, it does seem a bit dark when it first happens as you fear the worst. But remember you are just one on many thousands of people caught up in the credit crunch so don't worry as advice and help is on hand here from people at lot further down the line who have already been through the same thing.

sampete

eggbox wrote: »

As Sparkly says, it does seem a bit dark when it first happens as you fear the worst. But remember you are just one on many thousands of people caught up in the credit crunch so don't worry as advice and help is on hand here from people at lot further down the line who have already been through the same thing.

I am a bit further down the line as eggbox states above. My family and I have been through the sleepless nights etc. But, all behind us now. I used and took on board eggbox advice on the CAG forum. ( eggbox - I have a different username on this site than the CAG forum )

I had an unsecured debt secured on the home as a type K restriction. Didnt realise this at the time, until eggbox explained. I was led to believe it was an equitable CO.

I am subject to an installment order, but, thats no big deal.

As stated earlier on in the thread, final CO does not appear to be registered by claimant. I had CO made final, but this was not registered by claimant. I rang the LR for an update, and was informed that this appears to be the norm these days. It costs a lot more to register the final CO. There is no need as the ICO has the same effect.

I understand now, that the claimant has little left in the way of enforcment. they have basically gone has far as they can go.

I like others want the restriction lifted for my siblings sake. I would like to think they can inherit the family home without the headache of dealing with the restriction.

Big thank you to eggbox for the time and effort devoted to this topic.

harisumo

I agree with the comments posted above, the information from this thread and eggbox were the first tangible bits of advice I had also. I'd used CAG and been caught up with useless debates from 'regulars' on there and had ended up in an even worst situation. The removal of the restriction is a difficult problem, I am in the same boat. My original loan was greatly inflated by the addition of the solicitors fees which ran into thousands, mainly because the whole legal process leading up to the court hearing was a catalogue of errors on their part which overcomplicated the whole thing but they ended up 'reclaiming' all their fees by adding them onto the restriction. I don't pay anything by installments and was never asked to and likewise I only have the interim restriction, haven't heard from them for months now.

sampete

harisumo,

My sentiments exacltly re cag and sol fees. Hopefully, readers will get more clarity and help on here.

regards