What happens to CCJ when Charging Order issued?

Chrisblue1962

Hi, I am currently on a DMP with CCCS. One of my creditors, Nationwide, for some unknown reason decided to go along the CCJ and Charging Order route to effectively turn an unsecured debt (£3,000, old overdraft) into a secured debt against my property. This was despite the fact that I have a DMP and have been making payments via CCCS to Nationwide.

Originally, Nationwide applied for and obtained a CCJ for a totally unrealistic amount, £160.00 per month or thereabouts. I never made any payments under the CCJ as I immediately applied for a Redetermination Hearing.

At the Redetermination Hearing, the CCJ was amended to a "Forthwith" Judgement so that Natiowide could then proceed with applying for a Charging Order. The Charging Order was granted this week.

My question is now that the Charging Order has been issued, would I be right in saying that the CCJ has effectively become void as the CCJ has been replaced with the Charging Order? If so, whay happens to the Register upon which the CCJ is recorded, is this amended to reflect more recent events?

I assume that my credit profile now has both a CCJ AND a Charging Order upon it?

I think it is unfair that I have been lumbered with a CCJ against my name just because Nationwide decided they wanted to convert the debt to a secured one - none of my other creditors, some of whom are owed much more than Nationwide, have taken this option. Now, even if I somehow settled the debt, I have a CCJ against my name for six years after settlement...and I had to pay ALL of the Court costs too...evebn though I am on a DMP

GasHead

Hi,
Sorry to hear of your situation. I'm in the same boat as you.
About a year into my DMP, one of my creditors (NatWest) turned nasty and went down the CCJ route. Swiftly followed by a Forthwith Judgement and a Charging Order. The CO court hearing was a foregone conclusion. I was up to date with DMP payments, but this didn't seem to sway the Judge.

NatWest were the only creditor to go down this route. All the others were happy to accept the original DMP payments.

In my case, the CCJ was recorded on my credit profile but not the Charging Order. As far as I know, a Charging Order is recorded with the Land Registry. I don't believe one cancels out the other.

I make my final payment in May, so I should be able to get the CO removed. The CCJ will stay on my credit profile six years from when it was issued.

National_Debtline

Hello Chris

To back up Gashead, the Charging Order (CO) does not replace the CCJ - it is simply a method of enforcing that CCJ. The CCJ is all that will be recorded on your credit file - no enforcement, be it a Charging Order, Attachment of Earnings Order or bailiff warrant - will show on there.

The CO results in a caution being recorded on the Land Registry. This would be seen by any potential buyers of your property and is designed to prevent the property being sold without the judgment creditor getting its debt settled out of the proceeds.

It is regrettable that Nationwide decided to go down this route, despite you being in a DMP with a reputable organisation like CCCS. However there is nothing to stop them - or any other creditors in the DMP for that matter - from doing likewise. We would like to think that this situation would be the exception rather than the rule, though.

@Gashead - yes you will be able to get the Land Registry record amended when the CO debt is cleared, no two ways about it.

Chrisblue1962

Thanks GasHead and National Debtline rep for your useful and helpful replies.

I'll just have to bear the consequences of Nationwide's...or "Nationsnide" as I now call them, being awkward and thinking they are more deserving than my other creditors...all this from a "mutual" organisation...yeah right.:(

Worzal_Gummage

I've just been through the same thing this week. Been to court, very humiliating! Nationwide have issued.... or placed a Charging Order on me! I also have a DMP and I'm with CCCS, who are very helpful! My five other creditors have accepted my plight and are all receiving the percentage of my available money, but Nationwide wanted me to pay off the £3000 that I owe them in three months ie £1000 a month!! If I had that spare money I would divide it by all my creditors not just give it to one! So they now have placed this Charging Order on me!
One question... I assume I will still be paying off something to them each month whilst the charging order is in place? And the Charging order will be set against my property and they won't demand they take my car instead?
Spoke to CCCS before the court appearance and they seemed to think I might have to pay a bit more each month and they would be satisfied... they thought that a Charging order wasn't going to be a realistic option... maybe now it's becoming more the rule than the exception with Nationwide!

ffb_2

A similar thing happened to me with Nationwide, had been paying my DMP for a year never missed a payment of £90 the ccj was for nearer £250 and they wanted a charging order because they considered the 5 years it will take for me to repay them too long. When I went to court the judge dismissed the charging order said the £90 was what I could afford and said I was doing the right thing dealing with my debts 5 years wasn't a long time in today's climate and was surprised at Nationwide's actions it was such a relief I had it hanging over me all over Christmas.
Nationwide's advert we are on your side makes me lol
Moan over normal service has been resumed
good luck