Charging Order? The myth

podperson

This is not wrong as it is taken directly from the Land Registry site and guidelines, to be honest any decent solicitor who deals in this field should be aware of the difference, if not you need to point it out to them and they can check it up fairly easily.
Therefore you don't have to pay it when you sell the property you only have to inform them that the property is being sold and therefore their restriction will be dropping off. They can technically try and take you to court to ask that they are given their money from any proceeds from the sale of the house but as others have mentioned earlier if you leave it until the last minute to inform them then they will not have time to do this and you have still fulfilled your obligation to inform them.
Regarding making you sell your property, even with a full charging order they will struggle to do this, especially if the property is your actual residence as this would in effect be making you homeless and they would have to have exceptionally good reasons to make a court agree to this.

winner12

Hi Podperson
Thanks for your reply I have suggested the other thread starter read this but it is still conflicting advice as all the other sites and Debt charities only tell you the creditor can have a charging order and they are only entitled to your share of the property

podperson

To be honest, while debt charities can be great and offer a valuable service it's worth bearing in mind that the majority of people there are volunteers with no real qualifications in this area. While they can offer help, advice and support they are often not the best on legal issues, especially if they may be a bit obscure. They also tend to frown on methods where you may seem to be 'avoiding' the debt which is why they don't encourage unenforceability and reclaiming on charges, but many people have success with these methods.
Am not sure which other sites you mean but since this information is taken directly from the Land Registry site, which is the place responsible for charging order and restrictions I would be inclined to go with their information

winner12

Hi Podperson
I am trying to gleen as much info as possible just in case any of my creditors try any of this its quite scary but your posts are very informative I am at present been passed from pillar to post with various DCA and would like to be ready if and when they try reading other peoples experiences can sometimes make it a mine field and knowledge is power

Sparklyfairy

With regard to debt charities, it is worth pointing out that they are (well I know CCCS are anyway) funded by the banks, so it's in their interest not give the correct advice when it comes to restrictions falling off.

winner12

Hi sparkly fairy
So for instance I go to court the credit card company get a so called charging order (but really its a restriction)on my house i decide to sell and tell my solicitor about the above does he then see to all the paperwork so I dont end up paying the creditor by mistake which some people on this thread have done

Sparklyfairy

Well firstly I'd contact loads of conveyancing solicitors before I decided to put my house on the market to see if they are aware of this. You can, technically, do your own conveyancing yourself although I wouldn't necessarily go down that route...but the key is to hire a conveyancer who will work with you on this & when they know when the completion date is 2 weeks prior (by law) send the creditor a letter re: the restriction & your house being sold, etc, etc & as they say earlier on this thread the creditor is rarely able to act in that alloted time. Anyone please feel free to correct me here!=)

Sparklyfairy

I just wanted to add that once your house is sold & if your creditor didn't act in time to get their share of your equity, the restriction falls off & so does the debt.

winner12

So if you dont have to pay the debt why would the CC take you to court is it just another mindless act

Sparklyfairy

Because they CAN collect the debt within the 14 days before you move - which is NOT impossible although difficult & they may not know that the house is jointly owned before they start court proceedings. It's a risk they're willing to take, I suppose.