Charges against property

steve811

Hope someone can advise on this and sorry for the long story!

About ten years ago I started a new job, on a much reduced salary knowing that the first two years would be a training period at a lower salary. We struggled and at the end of the second year I was offered a loan by my bank (Lloyds), as well as a credit card. I took out the loan and credit card thinking we would only use them to help us through to the end of the second year and then pay them back. However, I never really managed our finances and ran the card to it's limit (£3000) and used the loan to buy a newer car and pay off existing loans. As I was used to using the card for regular essentials I started to go overdrawn and after a while ran up a massive overdraft. I then changed banks and began to manage my spending, but as I had a £4000 overdraft Lloyds stopped paying the loan!

After two years of this Lloyds had increased the loan and the overdraft to a massive £12000! Although I tried to get them to reduce the charges they would not and eventually (2004) took me to court. As I was a financial mess I did not even bother to contest it and they obtained 2 CCJ's. I made a couple of token payments to keep the baliffs away but could not manage to keep up regular payments. In early 2006 we recieved a letter from Lloyds solicitors saying they would apply for a charge against our property (the family home). This they did and got two charges made against the property, and I was told at the time it would be very unlikely any challenge raised by us would succeed and I did not have the funds to pay what was now a total of £16000! I did negociate with the solicitors handling the credit card debt (£4000) and we agreed a payment schedule which is still being maintained and the debt is now less than £2500.

Had I been a bit more aware and less ostrich-like I would have tried to contest the charges against the property and make small but regular payments to satisfy Lloyds. However I was told repeatedly by Lloyds solicitors that nothing would stop the applications for charges and there was nothing I could do to contest the amounts as the court had already ruled in their favour. This means that if we want to sell the house we have to pay £12000 to Lloyds once the sale goes ahead and should my wife and I split up we cannot seperate the assets. I have been told that a court would be very reluctant to allow Lloyds to even try to evict us, as this is a family home and my wife has no legal responsibility for the debts, they are all in my name.

The question is, where do we stand now? Can I contest the original CCJ's? Can I apply to have the charges removed and on what grounds?

Tixy

On what basis would you be thinking of contesting the original CCJs? It sounds like you admit you owed the money?

Is your property in joint names? were the debts, and therefore the charging orders in indivduals names? if so suggest you read this link which might be useful to you - https://forums.moneysavingexpert.com/discussion/1839539

RAS

Is the house in joint names? If so, tenants in common or joint tenancy?

steve811

I would hope to challenge the CCJ's on the fact that they were mostly consisting of unfair charges. The house is in joint names, and the debts are only linked to me.

RAS

So did you read this link https://forums.moneysavingexpert.com/discussion/1839539 as your situation may not be as difficult as you think.

steve811

Having checked the paperwork it seems we don't have a charge against the property, only a restriction! :T It does mean we are in a much better position than I thought!