putting a charge on repossessed property

edited 30 November -1 at 1:00AM in Bankruptcy & Living With It
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twinklertwinkler Forumite
139 Posts
edited 30 November -1 at 1:00AM in Bankruptcy & Living With It
Is it possible to put a charge / restriction on someones property if they have just been repossessed and the property is on the market?

If so, what is the quickest & most cost effective way of doing this please?

Replies

  • zzzLazyDaisyzzzLazyDaisy Forumite
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    If the owner owes you money, and you already have a CCJ, you can apply to the court for a charging order over the property. You will need to register this with the land registry. However, this will only help you if there is equity in the house as the lender will be paid first, so if the house is in negative equity a charging order will simply cost you money for no purpose.

    If this does not answer your question, you will need to provide more information.
    I'm a retired employment solicitor. Hopefully some of my comments might be useful, but they are only my opinion and not intended as legal advice.
  • twinklertwinkler Forumite
    139 Posts
    Hi, thanks for coming back to me.

    Im owed in the region of £30k from someone, i sought legal advice and it was recommended that i make them bankrupt. This was done costing me £6k in costs and legal fees etc.

    The debtors have recently (some 3 years after making them bankrupt) been repossessed and their property is on the market for sale.
    I have recently found out that we are not named as creditors on their title register & our solicitor did not put a charge on their home on our behalf?

    Im confused as once the house sells (and there is equity in it) how do i get my money back? Im not named as a creditor yet i am the one who made them bankrupt.

    Any ideas on what next to do? . Im thinking the best way now is to get a charge (albeit belated) on their property to give me some chance at recovering something back?
  • zzzLazyDaisyzzzLazyDaisy Forumite
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    You need to take legal advice, or speak to the OR who dealt with the bankruptcy. If you were not paid out anything in the bankruptcy proceedings, it is very unlikely that you are entitled to anything now, as once the bankrupt has been discharged all the unsecured debts (which it seems includes the debt to you) are written off.

    You might get a better response if you post on the bankruptcy board.
    I'm a retired employment solicitor. Hopefully some of my comments might be useful, but they are only my opinion and not intended as legal advice.
  • JCS1JCS1 Forumite
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    The OR has three years to deal with a family home following a bankruptcy order, so suggest contacting them first.

    Also try and find out if there is any equity in then property, no point spending more on legal fees if you aren't going to get anything back.
  • debt_doctordebt_doctor Forumite
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    Hi,

    If you made them bankrupt then your debt was included (along with any other creditors they had) in the bankruptcy. Therefore you cannot now obtain a charging order as your debt has been discharged.
    The equity is puzzling because if the property had significant equity it would have been passed to an IP and dealt with which leads me to think there may not be much equity.
    In any case it has been repossessed, so if there are any spare funds after sale they will go to the BR estate to be shared amongst creditors after BR costs. BR costs can be considerable - I have seen a fair few Bankruptcies where the first 50k of property equity has been taken by the trustee leaving little or nothing for creditors.

    DD
    Debt Doctor, Debt caseworker, Citizens' Advice Bureau .
    Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***
  • zzzLazyDaisyzzzLazyDaisy Forumite
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    Part of the Furniture Combo Breaker
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    It is possible that the house was jointly owned and the other joint owner purchased the beneficial interest. Either way, you need to speak to the OR x
    I'm a retired employment solicitor. Hopefully some of my comments might be useful, but they are only my opinion and not intended as legal advice.
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