Charging order hearing this Friday

thechippy

Did you ever go to court on this / get issued with court papers?

A co is a form of enforcement.

alias07

I've just been to court today and the charging order was granted. I have been paying £1pm token payment until OH gets another contract - no work at the moment. I did receive a CCJ back in November that was £200 more pm than original agreement for loan payments, so sent form N244 off to court (london) objecting to this and then received interim charging order and date for court hearing. I asked for hearing to be heard in local court, and that's what I attended today. Does that make sense?

MortgageChallenge2011

All the court has done today is convert your unsecured loan into a secured one. As it is governed by the CCA they can only do this through the courts. By making it secure it means NR can be more flexible on lower payments - eg an extra £10 a month towards the arrears and not £200 as it knows it has security over your house there is the incentive to keep on paying. Thats why you need to call them up and arrange a payment plan.

alias07

Thanks for that. Although I am still in no position to be paying anything more to clear any arrears - do I still just offer the £1pm token payment until circumstances improve? Or offer say £10pm?

MortgageChallenge2011

I know one person has mentioned the charging interest and whether can be enforced. This is a minefield and I would strongly advise against ignoring them and not paying. As you know NR have a habit of popping out of the woodwork at the last minute.

My advice is to call them on Tuesday and check if court interest is being charged. If not then leave it be, if yes then dont take it any further on the phone. Make your payment plan, keep them happy, write a letter explaining it. Things are better sorted communicating rather than telling them to go forth.

Glad to hear you got through today, well done. Defending a charging order is nigh on impossible but at least everyone knows where they stand. Keep getting a balance statement off them every 6 months just to check the balance and no hidden charges are sneeking on.... this is NR we are talking about.:rotfl:

MortgageChallenge2011

Offer the £1 and say it will be reviewed every 3 months.

alias07

Thanks, will ring them on Tuesday and get a payment plan sorted. Will get regular balance statements too - that definitely makes sense.

eggbox

alias07

Who told you that you had to ring NR to arrange a repayment plan?

I'd like to agree with Mortgage Challenge 2011 that talking to NR is better than telling them to go forth; but did talking to NR do any good prior to getting the CO? No, I thought not.

You, obviously, have to do what let's you sleep at night but my opinion is that when a Creditor goes to these lengths he is mainly trying to queue jump other creditors in the event YOU decide to go bankrupt. I believe, too, that they back themselves into a corner, negotiation wise, as you really have nothing to lose now by ignoring them (or at least telling them £1pm is the limit).

Creditors know its virtually impossible to get an "order for sale" on this type of situation so they don't waste money trying (try Googling to find where a creditor has gone for an order of sale - I can't find any?).

Conversely, some creditors know they are virtually guaranteed to get a CO after a CCJ which is why they do it! It's used as a means to ensure that if you have got money to pay, they should be first in the queue. But don't be intimidated into thinking they now have any great power to force you to pay anything else as they don't.

Sparklyfairy

eggbox wrote: »

Sparklyfairy

I notice you say your DJ granted interest to be charged when you went to court. Was your debt for a CCA regulated loan?

Only asking as my info is interest cannot be added to CCA regulated loans??

Egg, my co was for an MBNA cc & I understood that interest could not be charged, but the solicitor disagreed and the judge did too..it happened in Nov 2010, so I haven't seen a statement as yet. Pathetic and not at all transparent on the interest issue!!!

eggbox

Sparkly

Have a read here;

http://www.consumeractiongroup.co.uk/forum/entry.php?191-Post-judgment-interest-on-CCA-regulated-debts

Particularly the section on Judgements made after 2008