Credit Card Debt

fadsarmy

Are you at risk of losing your house if you can't pay off your credit card debt.

Tixy

Its highly unlikely, but in theory legally possible if you own your home in just your name.

If you didn't make minimum payments then your creditors could decide to take court action against you to obtain a CCJ. If you still didn't make payment then could then request a charging order secured on your house. If the judge granted that then the debt would be secured on your property.
Even if a charging order is granted usually all that means is that when you sell the house that any equity left after repaying secured debts must then repay the charging order. Forced sale charging orders do exist - but are very very rare (in these you have to sell your house to release the equity to pay off the charging order).

If your house is jointly owned then a forced sale could not happen.

The other way your house would be at risk is if one of your creditors to whom you owe more than £750 decided to petition for you to be made bankrupt.

If you are struggling with debts and cannot afford your repayments - and I did see you mentioned £20k of card debt before you changed your post - the best thing to do is contact one of the debt advice charities for some help. See here IMPORTANT - Where to seek professional impartial advice about your debts.

jonesMUFCforever

As Tixy says it is unlikely that you would lose your home but they could put a charging order on your home - so if you ever came to sell they would get their money then.
Contact a debt charity now please.

Buzby

Yes. However the Charging Order (called an Inhibition in Scotland) is te more usual route. Only when you sell up will the funds be paid to them. MBNA use this all be time.

fadsarmy

I'm actually in middle of a dispute about the marital home following a divorce. The house is worth £200k and there is no mortgage. My ex has offered me £10k to give up my interest on the house. My debts are £20k so I was expecting this as a minimum. Otherwise she has threatened to fight it out in court.

sharpy2010

fadsarmy wrote: »

I'm actually in middle of a dispute about the marital home following a divorce. The house is worth £200k and there is no mortgage. My ex has offered me £10k to give up my interest on the house. My debts are £20k so I was expecting this as a minimum. Otherwise she has threatened to fight it out in court.

How come your part isn't worth £100k?

fadsarmy

sharpy2010 wrote: »

How come your part isn't worth £100k?

I assume because she's looking after our 5 boys, 4-14.