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How a Non Secured Debt Becomes a Secured Debt?
Comments
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dexters_mum wrote:If your wife has a CCJ issues and she doesn't pay it, the creditor can ask for an Oral Examination N39 to be undertaken, giving a complete picture of your financial circumstances.
In this event, if you own your home and you cannot pay the debt, even in installments or you default on your agreed payments, they creditor may go back to the county court to get a final charging order on the property, this means when you sell the property, they get paid from the profits, providing there is some, I don't know how it works if you have no equity or if you have multiple charging orders though!!
This sort of advice is often touted around on this site and could be misleading.
In my experience if the creditor is going for a charging order they will apply for payment 'forthwith' and will not give the debtor the opportunity to pay by instalments at this stage. The judge is obliged to look at the total financial position including any equity in the house when making his decision and it is rare for them to turn down the application for the charge. At this point the creditor may well agree payment terms at the rate agreeable to you safe in the knowledge that at some point you will have paid in full by instalments or by selling your house. I agree it is very unlikely they will force the sale of the house unless you fail to hounour the agreed repayment schedule as laid out by the court.
One very major point to consider though is these days with statutory interest being added, the balance can increase very significantly so it is very much in the debtors interest to clear the debt as soon as possible before the debt eats away all the equity !0 -
I'm having the same trouble with EGG due to the amount of time it will take to pay off, didn't think 9yrs was that bad?!?!? They will hopefully see that we can't afford anymore. I have just filled in court papers with CCCS's help apparently there is nothing we can do at this stage but if it does go to court for charging order we should attend and put our case across. Quite p***ed off about it really because until we went on DMP we kept up payments, have never missed although they are now reduced. CCCs said they can't make us sell our house but will want their cut if we sell. Sorry started waffling, just needed to vent my spleen.Why didn't someone kick me up the backside earlier:mad:
Nerd 325 "Proud to be dealing with my debts":j0 -
I've had similar problems with HFC who I had a marbles card with. Basically they would not accept my offer of monthly payments so I received a CCJ to pay forthwith (due to the monthly payments not being accepted). When this is issed you have 16 days (I think) to pay the full amount owed. Obviously I couldn't afford to do this so they issued a charging order on my property. I attended court and argued my case but the charging order was made on my property.
Sounds really bad but now HFC have the charging order they will accept my monthly payments and are not taking any further action against me. They do still charge interest though so as soon as I remortgage they will be getting paid in full.
Its not a nice situation to be in and at the time was very stressful, however, a charging order is not the end of the world and it is very rare that any further action will be taken after the charging order is made final unless you decided not to pay anything.One day I will be debt free and fat free!:grinheart0 -
Hi all,
Very interesting thread!
Does anyone know what happens if you dont own your property?
Before you think ive asked a daft question, my wife owns our house - in her name 100%, mortgage paid off.
Now, I know that if I went bankrupt, a certain amount of the equity in the house would be taken as mine due to us being married etc, (and that she only took over the house 4 years ago) but where would I stand with one of these charging order things?
I assume that it could not be taken out on me as I dont own a property so to speak.
That might explain why no one has done this to me yet.
Any thoughts appreciated.
All the best
debt23Total debt: £69,887 DFD: 2028
"Is there anybody in the World that I don't owe money to?"0 -
debt23 wrote:Hi all,
Very interesting thread!
Does anyone know what happens if you dont own your property?
Before you think ive asked a daft question, my wife owns our house - in her name 100%, mortgage paid off.
Now, I know that if I went bankrupt, a certain amount of the equity in the house would be taken as mine due to us being married etc, (and that she only took over the house 4 years ago) but where would I stand with one of these charging order things?
I assume that it could not be taken out on me as I dont own a property so to speak.
That might explain why no one has done this to me yet.
Any thoughts appreciated.
I assume the house would be safe because its registered to her not you, plus the debt is on you alone and not joint.
Anyway why are you even contemplainting bankruptcy? haven't you heard of something called IVA? an IVA can rescue you from the posibility of bankruptcy.
If you wanna know how it works, read this article: IVA InformationMoney, control it. not the other way round0
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