Help ! Charging order

Nicolai

Any advice much appreciated. I am new to this excellent site, (I only found it this morning). I’ve a BIG problem. Just when I thought that I was finally making some progress on sorting out my finances before I retire, (I am 55 and have a ten-year plan), I have been hit by a big BRICK. A debt purchasing company bought all my smaller outstanding (and yes defaulted) credit card debts and took me to court to reclaim one large sum (23K) plus interest. I made a right mess of handling this at the time, (I have been unwell), and it resulted in a CCJ. Now the company are in the process of making a charging order on my home. I can now just about afford to repay this debt over time and in instalments. My big worry is can they force me to sell my home? As it said the debt is for 23K my house is worth 110K my outstanding mortgage is 55K. I am becoming unwell again because of worrying about this. Any support or advice would be most welcome.

plumduff-2

You need urgent advice - so my suggestion is to get your bum down to your local CAB or council advice centre..

Charging Orders are becoming the norm for creditors these days.. when they go for one, they are generally given these days and you need to ensure that any payment arrangement made for repayment of the debt is one which oyu can afford...

If a repayment plan is made and then you have difficulties repaying it, so dont... then the creditor can take further legal action - which could involve asking the courts for an order of sale...

These are few and far between.. but you need to ensure if a CO is requested, that your interests are taken into account..

Nicolai

Thanks for you quick and helpful response. It is reassuring to learn that I can make a repayment offer. Who decides if it is acceptable, the Judge? Will interest still accrue? Thanks again.

plumduff-2

I really dont know too much about CO... but when it goes to court you ask for conditions to be imposed - this is the repaymetn arrangements..

The CO in effect make the debt secured rather than unsecured.. Therefore it would then be classed as a 2nd mortgage, so I would think interest would still accrue..

You do need proffesional advice on this one... as it does concern the security of your property...