charging orders??

longshot

does anyone know much about these...

for example i am unemployed with a house in neg -equity

have 2 children + married and owe lots on credit cards over 25k.

debts are from cost of living no luxuries..

would the judge put a charging order from all 4 credit cards if i went bankrupt

or would he just impose a portion of the whole amount ie half?

what is the rule of thumb?...can't seem to get a clear picture

of how much the court would place on my house ?

anyone know or had a similar experience?

JCS1

If you are going BR, then the unsecured debts would be included in the BR, the judge wouldn't put charging orders on your property.

The OR does have 3 years to deal with any equity in your property though. Check you the sticky at the top of the page, as there should be some details on property there.

Bethankim

Hiya,

If you go bankrupt then all your debts would be included in the bankruptcy - which means they would be written off. The official receiver will want to know about any assets you may have such as car, house, shares etc. these would be to used to go towards your creditors.

if you dont have any assets and your house is in negative equity then the official reciever will look at

1. if you working then you would recieve a nil tax code and you would pay the tax to a company called moon beaver

2.you will need to complete a statement of affairs, which you must show your income and expenditure for living costs - there is lots of help for completing this.
if you have a surplus then you will have to pay a portion of the surlus for 3 years.

you will need to get your house valued by 3 estate agents to show as evidence. If your house is in negative equity you can buy back your beneficial interest (ie any future profit) from the official receiver.if there is any equity then the official receiver has 3 years to realise the equity. This can happen in two ways either someone else ie a family member of friend can buy it, or you sell your house.

Once your beneficial interest is sorted and say it is negaitve equity and thats accepted - you pay £1 plus solicitors fees of £211 i think.

you are still liable for your mortgage - if the negative equity is lots and you are already behind and plan to rent then allow the reposession to go through and dont sign anything...

sorry going on a bit now,hope that helps..in short no you dont pay a portion of your debts.i hope that helps

longshot

thanks Bethankim,

well it's almost break even the value of the house but definitely

no more than its value + there is a redemption too of 5% of the value. (all payments upto date)

thanks for your help very good.

Out of interest if my costs of living is say 1600 but my income 1000

and my mortgage 700 will they presume i can still pay my mortgage

which i would do?

Bethankim

Hiya your welcome,

if you follow this link http://www.makesenseofcards.com/soacalc.html and then fill it in
and post it up peeps can help you tweak it there are guidelines about how much the official receiver would allow.

dont bother putting in your unsecured debts but do put in your mortgage.

if you partner is working or on benefits you dont need to show the whole amount they earn just the amount they contribute eg if they earn 1000 and put in 700 then show that.

longshot

will do thanks.

just to pickup on something earlier you said if the value of
my house goes up in 3 years - my family can buy the equity?

not sure i follow this...i thought i would have to sell to pay

back the charging order or am i wrong here?

could i choose to stay longer? or is it possible to rent the house out?

longshot

sorry silly question how do i paste it here?

longshot

Statement of Affairs & Personal Balance Sheet

Summary

Monthly Budget Summary Amount(£)
Total monthly income 1,000
Monthly expenses (incl. HP & secured loans) 1,635
Available for debt repayments -635
UNsecured debt repayments 0
Amount short for making debt repayments -635
Personal Balance Sheet Summary Amount(£)
Total Assets (things you own) 145,250
Total Secured & HP Debt -150,000
Total Unsecured Debt -0
Net Assets -4,750
Income, Expense, Debt & Asset Details

Income Amount(£)
Monthly income after tax 1000
Partners monthly income 0
Benefits 0
Other income 0
Total monthly income 1000
Expenses Amount(£)
Mortgage 750
Secured/HP loan payments 0
Rent 0
Management charge (leasehold property) 0
Council tax 0
Electricity 30
Gas 30
Oil 0
Water Rates 20
Telephone (land line) 40
Mobile phone 0
TV Licence 10
Satellite/Cable TV 0
Internet services 25
Groceries etc. 400
Clothing 40
Petrol/diesel 15
Road tax 15
Car Insurance 20
Car maintenance (including MOT) 20
Car Parking 0
Other travel 5
Childcare/nursery 100
Other child related expenses 40
Medical (prescriptions, dentists, opticians etc.) 20
Pet Insurance/Vet bills 0
Buildings Insurance 20
Contents Insurance 0
Life Assurance 10
Other Insurance 0
Presents (birthday, christmas etc.) 0
Haircuts 5
Entertainment 10
Holiday 0
Emergency Fund 10
Total monthly expenses 1635
Secured & HP Debt Description Debt(£) Monthly(£) APR(%)
Mortgage 150000 (750) 6
Secured & HP Debt totals 150000 - -
Unsecured Debt Description Debt(£) Monthly(£) APR(%)
Unsecured Debt totals 0 0 -
Asset Description Value (£)
Cash 0
House Value (Gross) 145000
Shares and bonds 0
Car(s) 250
Other assets (e.g. endowments, jewellery etc) 0
Total Assets 145250
Comments on the results

You do not have enough monthly income to meet your expenses and your minimum monthly debt repayments. Seek ways to increase your income and/or reduce your expenditure by £635. Your total secured debt is greater than the value of your house. Is this correct? Whatever your results show, it always pays to seek advice or comments from others. Why not post your SOA details on our Debt Management discussion board or on your preferred discussion forum elsewhere. Thankyou for using the SOA Calculator at https://www.makesenseofcards.com.

longshot

its not including a redemption of 8k on my mortgage

Bethankim

sorry my muddle,

ive just been through this bit. the official receiver has 3 years to deal with your property.

they will offer you the beneficial interest fairly quickly in my case was 8 weeks after my bankruptcy.

so as you are on the boarder line if say your house is valued at £100K and your mortgage is 99K and its only you going bankrupt then your share is £500
you will be offered your £500 share, your partner could buy it, a family member or friend could buy it. if no one does then the official receiver has 3 years to realise the £500 in effect once the house is sold they get your share.

If you are both going bankrupt then individually the official receiver will wants £500 from you and £500 from your partner.

hope that makes sense.

longshot

my other unsecured debts are around 700pm but now just can't afford it