charging order.....

besswales

A friend of mine has come to me today in bits having discovered that her husband has a charging order in place on the house that they both own. it was obtained although an agreement to pay is in place with no missed payments at all. my question is if anything should happen to her husband who is not in the best of health could these people take her house. she is really worried about this and i just want to try to give her some reassurance if i can. thanks in advance!!!

Sparklyfairy

Hi there, please tell your friend to NOT STRESS! The court will not allow the creditors to force the sale of a jointly owned home.

It's now unfortunately becoming more of a norm when courts grant charging orders on a ccj where there was no missed payment - sad but true (happened to me) BUT it's really important to show your friends this thread - Charging Order? The Myth. I hope it helps!

besswales

Thanks i will sit her down and she can read this over a nice cup of tea(possibly something stronger due to the state shes in) she is really worried about how she would be able to pay it herself if the worst should happen. would she be liable for the debt as it is nothing to do with her it was for one of these "claims direct" accidents 3 years after the event

Sparklyfairy

No your friend wouldn't be liable if the debt was in her husband's name & the house is in joint names.

But, just had a thought - I (wrongly) assumed your friend's debt was from a loan or credit card, but since it's not the link I provided wouldn't be relevant unfortunately as these refer to the standard Form K Restriction & the type your friend has sounds unlikely to be a Form K...

That said, the 2 main things you have asked about are still true;

1. They WON'T be forced to sell their home
2. Your friend will not be liable for this charging order as it's in her husband's name

Should they decide to sell, the charging order will be paid out of her husband's equity...Hope this helps