CCJ help? (is this the right place?!?)

jonanders

Apologies to experienced board members but I have tried my hardest to find the answer to this CCJ and Charging Order confusion I am having to deal with.

You see, I just received the Claim Form from HSBC's solicitors for some joint debts that we defaulted on. We have already spoken to CCCS and they did the statement for us and told us to let it ride out through the courts because of the situation we've got ourselves into. (double redundancy, 70K total debt + mortgage - used to a 55k a year joint income lifestyle, now coping with a 22K joint income... ) All of which is pretty straight forward.

However, what is confusing us now that we have received the Claim form, is that they have issued two claims - one on each of us.

both of the claims list the full amount of the joint debts and overdrafts we had.

Is that something we should defend against and just say take responsibility for half of it each - or does that not matter as the charging order will eventually be placed on our jointly owned home?

The matter is further complicated by them also cancelling my wifes separate account & credit card as a result of us defaulting on this loan.

So I guess I am wondering if joint or several liability means that they will seek a judgement on both of us for the full amount ( effectively twice the total debt) but only get a charging order for the total debt we owe them (as they can only ask for one of the debts back)

The have also lumped all the joint debts into one claim, making the total around £18k, and charges 8% interest on it per year. Is that something we can defend against too?

If this isn't the right place to ask, then please let me know where as I couldn't find it...

Jon
(I can't help but laugh really)

rog2

I can't help personally - all I can say is that in 1998 we received two summonses for non-payment of council tax - one in my name and one in my wife's name. We were one month overdue and had received a 'final reminder' and the summonses, both for total amount due, whilst we were on holiday. I went to the council, and a 'woman' told me that they had the right to issue summonses to both named taxpayers in order to ensure that they got paid - basically 'who the hell was I to question what they did'. I paid the outstanding tax before the court and consequently the summonses were withdrawn (would have paid the outstanding month on return from holiday anyway).
In 2004, the same thing happened, in that we were again behind by one month - final reminder, withdrawing my 'privelege' of paying monthly, followed exactly seven days later by summons - only this time just one summons, in my name.
As your situation suggests, this is such a minefield that I am bumping your question up in the hope that someone can help you.
I think you need the advice of someone like File-Wizard.

jonanders

Thanks for that Rog2,

What I have read about joint and/or several liability I'm beginning to think that what you're saying is correct. It's certainly one logical explanation for it, but law it seems doesn't always agree with my logic!

It's one heck of a mess we got ourselves into, that's for sure!

thanks,
Jon

CLAPTON

as you are jointly and severally responsible for the debt they are merely protecting their position by getting an charging order on you both for the full amount...that doesnot mean you end up paying double but merely that if one pays nothing they can still get the money from the other.
8% is the standard rate and i dont think you can do anything about that.

since they are converting an unsecured debt into a secured one, have you considered re mortgaging to raise the 18k and paying them off completely? ..at least you will be paying less than 8% interest?
(i'm assuming you have no other debts)

jonanders

Hi Clapton,
Oh we have lots of other debt. When we first had problems paying this loan, we informed Northern Rock and asked if they could help out. They wanted to as our record with them is spotless and longstanding but because the current mortgage is around 5 or 6 times our joint income they couldn't offer us anything.

Might look into it again though. Thanks for clarifying it for me CLAPTON.