Charging Order? The myth

eggbox

Stuckneedhelp

Charging Orders are handed out on a first come, first served basis and in your case would be impossible to stop. So I wouldn't waste time trying to get the CCJ set aside as, unless there is a reason you aren't liable for the debt, they will obtain one anyway.

However, creditors can't force you to sell your property they can only apply to the Courts for an Order For Sale to get the Court to force a sale. On primary property they are extremely difficult to obtain for the reason outlined in this thread (and particularly as you are trying to offer payment) But the creditor who has obtained the CO has gained priority for any equity you have in the house over the other debtor even in the event you go decide to go bankrupt.

That may be all they want but are you correct on the £763 figure as if they have gained statutory interest it usually runs at 8% which would mean a figure nearer £8k on the debt you state?

And are they giving you any indication of what they do want off you given the are refusing any repayment?

Stuckneedhelp

Thank you for the information Eggbox.

The strange thing is that the creditor has not told me what they want me to do!

In November, they wrote to me requesting £15 per month until 2446 (over 400 years time!). I wrote back to them and said this was ridiculous and pointed out that it would take 55 years at this payment level for them to get the £10,000 I was offering as full and final at the time! I did not get a response from them. However, I sent them a cheque last week to cover 6 months payments and completed the DD to keep paying then £15 pm. I also increased my offer to £15k.

They have declined my offers, but not indicated that they would be prepared to settle at any level at all.

The really frustrating thing is that in 2011 they accepted an offer of the property plus £15k, but I couldn't get the funds together at that point....

Does the fact that I don't live at the property where they have the charging order make it more likely that an order for sale would be granted?

eggbox

Stuckneedhelp wrote: »

Does the fact that I don't live at the property where they have the charging order make it more likely that an order for sale would be granted?

No, as it's still your primary "owned" residence.

Stuckneedhelp

So what, do you think, is the creditor likely to do now?

Should I be doing anything to force them to accept an offer?

eggbox

I, personally, would just leave it and let them make contact first. If they aren't willing to settle there isn't much you can do and, unfortunately, the more you contact them the more they will feel they have you on the hook.

Can I just ask about the £763 interest you said would accrue and how this comes about?

eggbox

A useful read from a firm of Solicitors advising creditors that CO's don't always mean a return of their money can be found at

http://www.slcsolicitors.com/guide-view.php?guide_id=69

skintbex

Just seen this thread, and I'm interested....

In 2008, Northern Roack applie for a charging order on my (jointly owned) propertly,. As far as I know, they got it - I'm still convinced it wasn't entirely legal as I didn't receive the notification with sufficient notice, and I wrote back to the court, asking for the hearing to be held closer to me, and also disputing the claim, but the judgment was made in my absence - I was notified of it sometime later. At no point did Northern Rock acknowledge anything I sent them...

As it happens, I've been paying off the debt, slowly, and hope to pay it off in full in the next couple of years.

How can I find out more about the judgment? My memory of it is sketchy (relationship breakdown etc) but I'm pretty sure procedures weren't followed..and from what I can tell, it should be a restriction only?

terryw

Obtain a copy of the register from the Land Registry. The fee from memory is £3 or £4. Sorry can't give a link as my computer is malfunctioning but I will return later with a link, unless another poster provides this.

Land_Registry

The service is known as Find a Property and for £3 you should be able to view the register for the property concerned.

The entry (if any) should refer to the Court where the order was given and their reference. You should then be able to contact the Court for more details as appropriate.

eggbox

Land Registry Rep

Glad you are still checking this thread! I have been asked the question below and my research has yet to unearth any reason/rule preventing what the owners want to do but, hopefully, you may be able to confirm anything that does prevent such action?

The question was; when a Charging Order severs a joint tenancy agreement is there anything that prevents the Land Registry from recording a change of percentage ownership by the tenants concerned? The people I am dealing with want to arrange a financial settlement for their divorce but can't sell there house. A change in the percentages would enable them to finalise a deal.

Any pointers on this would be useful!

couple