Moneybarn want my house

pottersjam

hello,

I would like any advice that you guys have regarding my situation. I'm sure you have heard it all before but i am struggling to cope and not sure where to turn.

Moneybarn have sent an interim charge order over a car finance that i took out 2 years ago.

Basically i bought a car on finance and lost my job 3 months later through illness and they want all the money owed.

the car was 7995 i paid 1200 deposit and several installments until i lost my job. They collected the car some months later sold it for 5500 and have now gone to court for 8000 ( total of interest i guess)

now i have total debts including this of 24k and am currently in debt management plan with all other debts.

i must stress i was in dmp when i took out the agreement and because it was for work was under the impression this was ok? as i was getting a car allowance.

my house has 30-40k equity approx but i will probably break family up if forced to sell.

any advice appreciated.

DevCoder

What does your DMP say about taking out other credit whilst under the dmp?

Unless your car agreement was in your former companies name and they just transferred the agreement to your own personal name when you left then the credit agreement was always in your name and the fact there was a car allowance has little bearing. It will be viewed as obtaining more credit.

antrobus

pottersjam wrote: »

....Moneybarn have sent an interim charge order over a car finance that i took out 2 years ago.
....

For the charging order process see:-
http://www.stepchange.org/Debtinformationandadvice/Whatyourcreditorscando/Courtaction/EnglandWalescourtaction/Chargingorder.aspx

Charging orders don't normally result in orders for sale.

pottersjam

krisdorey wrote: »

What does your DMP say about taking out other credit whilst under the dmp?

Unless your car agreement was in your former companies name and they just transferred the agreement to your own personal name when you left then the credit agreement was always in your name and the fact there was a car allowance has little bearing. It will be viewed as obtaining more credit.

no i had a hire car first and then the company said i had to sort my own car finance. As i was already in debt i panicked i suppose and not wanting to lose my job searched for ' bad debt loans ' and they offered me a deal, albeit a bad one.

For your information i have suffered with depression for over 20 years and not even sure if i was in a DMP at that time or not.

no excuse i know

DevCoder

Unfortunately unless you can provide a statement/letter from your doctor/therapist stating that in their opinion you were not in a competent enough state to understand what you were doing then the DMP creditors probably won't be interested.

You need to check the conditions of your DMP as your existing creditors can pull out and fail the DMP if one of the conditions was no further credit.

pottersjam

Charging orders don't normally result in orders for sale.[/QUOTE]

that is a little comforting thanks

DevCoder

And antrobus is correct, if you have a mortgage then they have a secondary charging order so would need the mortgage lender to agree to a force sale. Even then the mortgage company gets first dibs including any other debts you owe to the lender or its related companies.

pottersjam

krisdorey wrote: »

Unfortunately unless you can provide a statement/letter from your doctor/therapist stating that in their opinion you were not in a competent enough state to understand what you were doing then the DMP creditors probably won't be interested.

You need to check the conditions of your DMP as your existing creditors can pull out and fail the DMP if one of the conditions was no further credit.

thats just it i don't think i was in DMP as i think i'd missed payments due to being out of work prior to job

pottersjam

krisdorey wrote: »

And antrobus is correct, if you have a mortgage then they have a secondary charging order so would need the mortgage lender to agree to a force sale. Even then the mortgage company gets first dibs including any other debts you owe to the lender or its related companies.

i'm paying mortgage company on time every month including arrears

TheGardener

Hi - Have you sought professional advice? I think you need to look at the bigger picture will so much debt. Step Change have an online debt remedy tool that's fab and you can fill in in your own time and once the computer works out your options - you can call them to talk though it. You can post on the Step Change board at the top of this forum too. National Debt Line also have some great posters on here as is krisdorey.

I think the car is just part of your story and needs to be dealt with alongside the other debts rather than in isolation. Keep coming back here thought to tell us how you are getting on and for support

National_Debtline

krisdorey wrote: »

If you have a mortgage then they have a secondary charging order so would need the mortgage lender to agree to a force sale. .

Hello there.

This information is not correct. Anyone with an 'interest' in the property can attempt to force the sale; as such a creditor holding a charging order would not need a mortgage lender's permission - although the judge would need to consider the the lender's interests. That said, it is incredibly rare for a charging order to result in an order for sale. If the property is held in joint names you have further protection too. Under the Trusts of Land & Appointment of Trustees Act 1996, the court has to take into account extra points when considering an order for sale application.

• The welfare of any children in the household. For example, there may be a need for stability at school. The effect on the children of moving house should be considered.
• The interests of any secured creditor.
• When you bought the house, what did you buy it for? Was it intended as a long-term family home? Was it imagined that an elderly person would live there for their lifetime?

In a nutshell, a court is unlikely to allow a forced sale whilst your children are living in the house.

Additionally there is something else you can do too. At the hearing you can ask the court to add a condition to the charge which states that the lender cannot take any further action in relation to the court order (such as an order for sale) so long as you stick to an affordable instalment each month. You should take a long a copy of your financial statement to show the court what you may be able to afford. You can find one of those via our website: http://www.nationaldebtline.co.uk/england_wales/debt_advice.php#5

Charging orders are very common, we speak to clients about these every day. To reaffirm, orders for sale are incredibly rare - and given your circumstances it would be very difficult for a creditor to succeed in obtaining one based upon the information you have provided.

Here's a link to our charging order fact sheet, consider printing it out as it is full of really useful information for you:
http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=15_charging_orders_in_the_county_court

Finally, please ensure that you go along to the hearing.

Best wishes,

David @ NDL.