County court judgement charge on house

CANARY_JOES

About 6 months ago my wife and i agreed a dmp with vincent bond finance.They have been very helpful dealing with our creditors .In fact with my wife and i working long hours they have been invaluable. Unfortunately one of creditors (9k owed) has not agreed our monthly rate of repayment ( 80% CREDITORS have agreed at moment) and have now taken this to county court. We have been told to pay an amount which is unrealistic . On the county court form it says we have 16 days to reply. I have spoken to VINCENT BOND about this matter and they said it is likely they will put a charge on my house . They also said for me to wait for them to contact us. I am slightly worried about baliffs(MENTIONED ON COURT DOC.) and employers knowing about my financial plight.(wage details etc ) Has anybody any knowledge on this matter.
thanks.

RedTulip

A charging order is used to create a legal interest in your property. This means you cannot sell your property without paying the debt. The creditor could apply to the court to have the 'goods' (your house) sold, although for this to happen an "Order of Sale" is required, and very rarely granted. In effect the creditor is taking security over the debt in the form of your house.

A charging order can also be applied to shares or insurance policies.

With regards your employer finding out, I'm pretty sure they wouldn't. As far as I know they would only be made aware if an attachment of earnings was applied.

hth

RedT x

Sparklyfairy

Hi there, Firstly - are you paying Vincent Bond? Do you know there are a few FREE charitable debt companies that will do exactly the same as Vincent Bond? CCCS, Payplan, National Debt Line...Just thought I'd let you know you could be using the fee you're paying them to help pay off your debt sooner...

As for the CCJ - yes, sometimes the court (Northampton most likely) do tend to put a very high repayment which you will default. They can then go for a charging order on your house. You CAN challenge this & I'm annoyed that VB never told you this! Firstly, when did you get your CCJ (with the high repayments?) I believe you have 14 days in which to ask for a redetermination (although you can ask for a redetermination at any time)... I know Nat'l Debt Line will know the exact form to use for this or another forum called CAG will know for certain. In any case the court will know & you'll either be able to download it or they'll send it off - but you MUST do this asap. Send it off & keep up the repayment in the mean time (yes, the high one!) until your payments are readjusted. If you default on this payment then they can apply to the Land Registry for an interim charging order & you'll be asked to go to court & it will be made into a final charging order. Although you'll only be asked to pay what you can afford with your redetermination, I think it's important to point out that a judge will see the total amount owed (9K) divided by the amount you're willing/able to pay (say £40/month) = £480/year = almost 19 years to repay = the judge will most likely grant the debt to be payed forthwith (all at once) inorder for your creditor to be able to apply for the charging order so their debt is "secured" - the average person moves every 7-8 years, so essentially they can *hope* to be paid then. Make sense? If you make a sizable monthly payment (say £100+) per month, the judge will most likely see this as a sizable amount & they won't get the charging order finalised.

I think I should also point out that if your charging order is granted you'll still have to make the monthly payment..then once you sell the amount you have paid will be subtracted from the total you owe from the proceeds of the sale of your house.

The creditor will want a charge on your house most likely (unless it's for taxes or council tax) - don't worry too much about bailiffs, etc.