Charging Order and DMP query

Chrisblue1962

Hi all

One of my creditors (Nationwide) is looking to request a Charging Order in the near future - got Court Papers this morning .

However, I am currently on a DMP with CCCS which is being paid. So, if the Charging Order is granted, are CCCS still obliged to still pay Nationwide under the DMP as having the Charging Order means they will get their money by another route i.e. the Charging Order, anyway?

Also, if one creditor gets a Charging Order, will this not alert the other creditors and start a Charging Order "stampede"?

chez000

A charging order is, as Im sure you know, just a way of securing a debt against your property.
Really you want to continue to pay via your DMP as the creditor is unlikely to want to wait until you sell your house for their money if they can get it sooner.

It is possible for a creditor to apply for an order of sale to force you to sell a property, although I wouldn't be unduly worried about this, as I think it still relatively rare for these to be granted and the value of the property/equity etc has to be considered against the size of the loan, e.g if your house is worth 100, 000 but you only owe 5000 - unlikely to be granted as not really a reasonable action.


It may start a stampede who knows? less likely tho if there is insufficient equity in your property to cover the debts owed to other creditors.

Sparklyfairy

Hi there, when I recv'd my CO last year, I was also on a dmp - so far my other creditors haven't felt the need to go down the charging order route, so don't worry. I remember searching everywhere to find the answer to this question - if a creditor is granted a co, do you still have to keep up the payments...? I couldn't find the answer anywhere! At my hearing the judge said that I had to continue making payments as per my ccj - same rate. Me keeping up these payments wouldn't stop the creditor from going for an order of sale, though. They can do that at any point - however - the courts rarely grant them - especially if you or a member of the household is disabled or there are children living there. You're right - creditors who are granted with co should just be satisfied they have secured their original unsecured debt - but try not to worry too much - the co just sits there while you continue to make payments. Essentially you'll be "educating" the judge on this fact but you need the case law to back this up. This was something I discovered after my hearing so please learn from my mistake!

One thing - are you planning on going to the hearing? You really should. One thing a lot of creditor's tend to do is ask for 8% interest to be added to the debt (the debt has to be covered by a CCA i.e. loan, credit card, etc) - but they aren't allowed to have it granted! One thing I have learned is the district judges who hear charging order hearings aren't always clued up on the in's & out's of charging orders - they mainly hear divorce or family proceedings - so it is imparative that you at least do a google search on this, find the case law relating to this (can possibly be found on the CAG forums) & print off 3 copies..1 for you, 1 for the dj & the other for the creditor's solicitor.

Finally, is the debt your own & is your house jointly owned? If so, take a look here . Really hope this helps xx