charge on property

eggnic1

i had a loan that i have defaulted on and although i was trying to sort out payment arrangements with them, they then sold the debt to someone else. I set up an arrangement with the new financial co and within days they had ordered a court judgement, nthey have now applied for a charge on my property, what do i do now, i gave them all expenditure and income and offered to increase repayments every 6 months but they wont listen.

RAS

When you got the court papers re the debt, did you admit the debt, or defend the case?

Was the CCJ dealt with by Northampton Court?

Are they going for an interim or a final charging order.

AMILLIONDOLLARS

How much is the debt now? If its under £5K the judge should not really be granting a charge on the property. If you go to this site the is a very good thread on charging orders and how to defend them.

http://www.consumeractiongroup.co.uk/forum/legal-issues/

Good Luck

AMD

Mr_Nice_Guy_2

Is there a limit on charging orders then? or an amount they would usually apply for one of?

CeeBeeDeeBee

Hi is that right? I have 3 CCJs all for less than £5K each - is that right then that they wouldn't be able to apply for a charging order, or that one wouldn't be granted?

DarkConvict

CeeBeeDeeBee wrote: »

Hi is that right? I have 3 CCJs all for less than £5K each - is that right then that they wouldn't be able to apply for a charging order, or that one wouldn't be granted?

Glance at the forum suggusted. There is no legal minimum for turning a CCJ into a CO, however if it is under £5,000 you could suggust that a CO is unreasonable and another means like an administation order could be used instead.

Section 1(5) of The Charging Orders Act 1979 reads:

In deciding whether to make a charging order the court shall consider all the circumstances of the case and, in particular, any evidence before it as to—

(a) the personal circumstances of the debtor, and
(b) whether any other creditor of the debtor would be likely to be unduly prejudiced by the making of the order

Some possible arguments which could be used to oppose the Final Charging Order are:

- Could there be other methods of enforcement which could be used by the court to enforce the debt?
- If the total indebtedness of the judgment debtor is less than £5,000, could they have an administration order instead?
- Could the creditor have offered a secured loan instead of an unsecured one?
- A recent change in circumstances shows that reasonable repayments can now be made (evidence would be needed)
- All the missed payments have now been paid
- There is little or no equity in the property
- The CCJ is very small compared to the amount of equity
- If the CCJ is for a CCA regulated agreement can the court consider a Time Order instead?
- Granting a Charging Order would unfairly prejudice other creditors who have accepted pro-rata payments
- The debtor is about to go bankrupt or enter into an IVA, the creditor would have an unfair advantage if they were to have their debt secured.

If only one owner of the property is liable for the debt:

Providing there us no pending divorce proceedings, a husband/wife or any other beneficiary of the home is entitled to make representations as to all the circumstances of the case. They could try and minimise the percentage of the equity of the debtor by showing evidence of:

- Contributions towards mortgage payments
- Contributions towards the deposit
- A declaration of trust at the time the property was purchased

CeeBeeDeeBee

Thanks DC, so there is no reason that a creditor with a CCJ which isn't being paid can't apply for a charging order (apart from the cost issue)

I would have to come up with a suitable defence as you have outlined in your post in order to not make it final.

Just out of interest how much does it cost to apply for a charging order?

DarkConvict

http://www.consumeractiongroup.co.uk/forum/legal-issues/238548-hfo-seeking-charging-order.html

According to this one case, £264 but i honestly thought it would be more than that.

pepe2008

Dont forget that if your property is JOINTLY owned, but the debt is in a single name then they will only have a 'Restriction'. Not a Full Charging Order.
Which will mean, as far as I know, that they cannot force a sale. Its just their insurance in case you decide to sell up and run.....you still can with a Restriction if you're quick:D

CeeBeeDeeBee

Thanks pepe, I've read that thread too but my solicitor thinks that wont work - maybe I need a different solicitor lol

Wow that is cheap DC, I thought it would be alot more than that!

pepe2008

My experience of Solicitors is that they are good for simple Conveyancing, standard Wills and Personal Injury Claims ( with a lot of 'direction')......but for anything else