Charging orders on shared ownership houses

Ruby_woo

Dear all

I'm not sure if this is the right place, but can a credit card co put a charging order on a shared ownership property 70/30 if both parties are not at the hearing on the court day?

Many thanks in advance, please move to the right place if necessary

holly_hobby

The Charging Order (CO) will be secured against your equittible share - the other party's interests will be unaffected.

A CO may only be applied for by the creditor/assigned legal owner, if the account has already gone into default with the subsequent award of a CCJ, where following the court directive the debtor also fails to adhere to the terms of the order.

A CO is not an order to sell, although the creditor may later try this route following the award of a CO - what it is, is the charging of the os debt against your equittible ownership, whereby once sold the os debt will be satisfied from the sale proceeds.

Have you taken any legal advice regarding this ?

Holly

Ruby_woo

Thank you holly

The person who owns the 70/100 share has been in touch with national debt line and they are representing themselves in court this thurs. other than that then no legal advice taken.

N debt line advised that as the property is valued at 98,000 and there is a 101,000 mort on 70 per cent then prob judge would grant co but no force a sale.

Any extra advice appreciated though please x

Ruby_woo

Ps holly the person involved is here with me now as says thankyou for replying. If you can think of anything else please post and they can answer now before they leave here. They are worried about homelessness x

holly_hobby

Hi,

The creditor won't normally pursue an order of sale - esp if there is negative equity as you suggest.

Is there already a CCJ in respect of the debt ?

H

Ruby_woo

Yes holly there is. She says that all other creditors are happy with reduced payments but sygma bank aren't and they are chasing the co. n debt line says she should tell the judge about other creditors being happy with arrangement or should she let the co go through otherwise baliffs may be sent next? Debt is for 2600,00 x

holly_hobby

A ccj means its gone to court, and the court have stated what the repayments are (either by instalments or full).

When she recd the court docs, did she fill in the budget planner ? If not, why not ?

Did she do nothing to prevent it getting to court ?

If the court judgement was for a payment that was unaffordable, has she contacted them to advise of her financial situ ?

Has she tried to get the CCJ set aside (why did she let it get this far) ?

How much did she offer as a reduced payment ? What reason did Sygma give for rejection ?

Is she working, was she working when she fell into payment difficulties ?

I presume the debt is £2,600 not £26k - is that correct ?

Yes, she should take evidence from all other creditors re the accepted payments, but she should have done this before the CCJ was awarded TBH, as this may have prevented it - as if she was offering the max affordable (after essential bills), the creditor would have been deemed to be acting unreasonably in refusing the offer made.

So, although the creditor is not accepting what she has offered, has she paid them anyway, or simply paid them nothing at all ?

TBH, if a CCJ has not been maintained, then the creditor is quite within their rights to pursue a CO - and as I say, unless there is sufficient equity in the property to repay, an order of sale will not be granted at this point, as it will have no benefit for any party concerned.

Baliffs - again the creditor has to obtain a court order for the instruction of baliffs.

My advice would be to try and negotiate directly with the creditor before it gets to court next week, and see if they will discontinue or suspend the action.

Holly

Ruby_woo

Ok right, here goes

The court date was for a day when she just could not get there. She was at work and couldn't get the day off so she spoke to the court and they told her that the ccj would be awarded and that she could re determine it?

The judge awarded the ccj and the amount of 2600 to be paid by oct 31 which she couldn't pay so the next day she got a notice to attent court on thurs 21 dec which she has arranged to take the ay off for. I think she as buried her head in the sand tbh.

I don't know much about these things but do you think the co may come to a settlement? Even if on very small payments?

Do judges normally let a co go through?

Yes works very long hours, 14 a dy most days on salary. She is in a mess financially but never missed a mortgage payment just token payments to creditors.

Thank you x

Ruby_woo

She has now done a very specific inc and out form with national debt line.

I just want to help her as best I can x

holly_hobby

She could and should have submitted her defence in response to the Particulars of Claim (inc a budet sheet) - this would have been considered as part of the hearing ..... she obv didn't do this, and then capped it off by failing to attend the hearing, resulting in an automatic award in favour of the creditor.

Yes a Judge may award a CO if they feel there is little prospect of the debtor making any attempt at payment of the CCJ.

Payments to creditor aren't token payments, token payments are classed as those under a reduced repayment plan.

What has changed financially, whereby she became unable to manage her commitments and went into default on them all ?

H

Ruby_woo

There isn't any equity though?x