Charging Order Query.

DS4215

Well, today we have the papers for the court date for the charging order on my big debt. I already have a CCJ issued on this debt. Am I right in thinking that the charging order means that if we sell the house then they have to be paid first out of any profits?

Am I also right in thinking that they can only go for eviction by going through court after failure to make payments on the CCJ?

Cheers

MrsTinks

Yes they will have to be paid before anyone else APART from mortgage company if or when you sell the house. If you have enough equity in the house to cover the debt then you will get any left over, if you don't then they will continue to chase you for the remainder.

Eviction is very very far down the road - is the house in just your name or your partners too? Do you have any kids etc? All these would come into play even if your creditor tried to go for a forced sale. A judge would be very unlikely to allow a creditor to force a sale if the debt is in your name only but the house is in two names and same if you have kids that live or stay with you.
It may even be that the judge won't approve the charging order for the same grounds so do make sure you turn up in court and defend. Especially if you have been making the CCJ payments so far.

RAS

Is the house in sole or joint ownership?

Is the debt sole or joint?

DS4215

Thanks for that. This debt is solely in my name (all are except for an overdraft on a joint account that will be next to be paid off), and the house is in joint names and there is a child (9 years old) at home.

I will read through the paperwork tonight and see what I need to do to defend it. The CCJ was only issued in Feb and I've made 3 payments so far. In fact, I'm not entirely sure that I'm not overpaying it

RAS

DS4215 wrote: »

Thanks for that. This debt is solely in my name (all are except for an overdraft on a joint account that will be next to be paid off), and the house is in joint names and there is a child (9 years old) at home.

Ok, you need to read blueback's thread.

DS4215 wrote: »

I will read through the paperwork tonight and see what I need to do to defend it. The CCJ was only issued in Feb and I've made 3 payments so far. In fact, I'm not entirely sure that I'm not overpaying it

You should try and read up on Mercantile V Ellis, as this state that as long as you are paying what was order by the Court, they should nnot go for a CO.

pepe2008

As far as I'm aware, if the debts in a sole name and the Property is Joint then they can only get a 'Restriction'. Which ( as far as I know ) means that if YOU choose to sell then your Solicitors are required to inform the Creditor named on the Restriction that the sale is taking place and then THEY have to make a Claim.
....but if you sell and dont tell them until the last few days, then its unlikely that they'll get their claim in before the rest of the monies are distributed.