Charging order?

cempabunny

Hello everybody,

I've been lingering on this site for a while now and have finally decided to register!
I know it's cheeky ( Me being an MSE virgin an' all!) but I'm after some advice.

I had my lightbulb moment in September 2006 and contacted CCCS for some help. They've been great in helping me to get a DMP up and running which I've been doing since Nov 2006. I've got 8 creditors and owe a total of £23,000 :eek: BUT.... it is the beginning of the end for my wreckless spending and debt consolidation.

I've had a phone call from Morgan Stanley card services tonight requesting payment of £76.00 per month. I advised them of my DMP and they said they hadn't had any contact from CCCS. I said OK, I'll get onto them and ask them to send it again. The guy then asked me if I am a homeowner and I said Yes. He then said that they could get a charging order against my property. What does this mean???

For the record, I owe Morgan Stanley £3080.00 which will be paid back at £38.00 per month. I'm looking to increase this to approx £50.00 per month in about 6 months time when some of my smaller debts are paid off.

Thanks in advance for your replies, I know how helpful you can be

gettingitsorted

A charging order basically means that if you sell your property before you pay off Morgan stanley, they are entitled to the money left over from the proceeds of the sale. i.e after any outstanding mortgage, secured loans, Solicitor and estate agent fees. They can't make you sell your home and they have to first issue you with a ccj then go to court to apply for the charging order. Shouldnt panic too much.

cempabunny

Thanks.. I was worried they could make me sell up

gettingitsorted

Na. If you keep paying the cccs you may well not even get a ccj.

cempabunny

gettingitsorted wrote:

Na. If you keep paying the cccs you may well not even get a ccj.

That's the plan :rolleyes: My DMP is realistic so will be able to stick to it. Any spare cash I get is going into paying off the debts with the highest APR's ( Been snowballing again today)

Man, it feels good to finally be getting this all sorted :T

madduck

Don't let them worry you. Morgan Stanley were one of my worst creditors when I started on my DMP. I had the threats about Charging Orders (which I don't think even apply - yet - in Scotland). I also had them pressure me into getting a secured loan to pay off my debt - which they shouldn't do as it is against the code of practice regulations. They also continually denied receiving the information from CCCS and then denied receiving payments. Seems as though their admin departments are totally crap (or that is an excuse that they rely on).

Just don't let them get to you.

Xbigman

If you are with CCCS then you should not use extra money to pay off smaller creditors. You should instead give the extra money to CCCS to distribute pro rata. CCCS should also get most of the interest frozen, possibly all of it, so that should not be a factor. The reason for this is because those creditors who do freeze interest are doing it on the condition of pro rata payments and if you pay off high APR stuff first they will soon realise it and re instate interest to move themselves to the front of the queue.

You've posted no details on the individual dents so the following comments are general.
Don't worry about charging orders, they cannot make you sell the house. Creditors need a CCJ first and it can be fought at every step of the process.
Eventually they might get a charging order but you just pay the CCJ and you are 99.9% safe.
Regards



X

smokey112

madduck wrote:

Don't let them worry you. Morgan Stanley were one of my worst creditors when I started on my DMP. I had the threats about Charging Orders (which I don't think even apply - yet - in Scotland). I also had them pressure me into getting a secured loan to pay off my debt - which they shouldn't do as it is against the code of practice regulations. They also continually denied receiving the information from CCCS and then denied receiving payments. Seems as though their admin departments are totally crap (or that is an excuse that they rely on).

Just don't let them get to you.

In Scotland a charging order is called a Schedule of Inhibition - we had one placed on our home by RBS - this was wiped out after we declared BR

madduck

Thanks Smokey

cempabunny

thanks for the replies everyone.

xbigman - i'm not giving any of my creditors extra payments. I'm due my work bonus in March next year and was going to use it to clear off some off my debts but it won't be big enough to pay off the larger ones Should I not do this?

tobedifferent

I think you should send the extra money through to the CCCS and they will distribute it to all your creditors. Thats fair.