DMP/IVA Charge Orders - forced to sell?

coochycoo_2

HAD A LIGHT BULB MOMENT :T now I feel .

I thought I was geting stuff sorted via payplan and now I jst heard about charge orders.:(

When are Charge orders applicable?

I am currently in the process of signing up to a DMP with Payplan. I have secured debt which will be met by the normal regular monthly payments and unsecured debt of £70K :eek: which is to go on the DMP.


Is it best for me to go on an IVA because I do not want to be forced to sell my home now I have heard about charge orders on a DMP.

I have dependants and the last thing I want to do is have to sell up, I am the bottom end of the property ladder anyway and the equity is the equivalent of the secured loan so no point in trying to release equity thats already earmarked.

I am worrying now that my home is at risk.

I understand that a lump sum of the equity is payable if you have an IVA. Payplan gave me the choice of either and IVA or a DMP. I want to do whatever has the least affect on our home e.g losing it/forced to sell. We have always made the secured loan payments and mortgage payments. We have always made payemtns to all creditors up until this point but its been a case of robbing peter to pay paul. Now its time to sort it out but I am worried now about our home.

What are everyones experiences regards this?

Richard_S

coochycoo wrote: »

HAD A LIGHT BULB MOMENT :T now I feel .

I thought I was geting stuff sorted via payplan and now I jst heard about charge orders.:(

When are Charge orders applicable?

I am currently in the process of signing up to a DMP with Payplan. I have secured debt which will be met by the normal regular monthly payments and unsecured debt of £70K :eek: which is to go on the DMP.


Is it best for me to go on an IVA because I do not want to be forced to sell my home now I have heard about charge orders on a DMP.

I have dependants and the last thing I want to do is have to sell up, I am the bottom end of the property ladder anyway and the equity is the equivalent of the secured loan so no point in trying to release equity thats already earmarked.

I am worrying now that my home is at risk.

I understand that a lump sum of the equity is payable if you have an IVA. Payplan gave me the choice of either and IVA or a DMP. I want to do whatever has the least affect on our home e.g losing it/forced to sell. We have always made the secured loan payments and mortgage payments. We have always made payemtns to all creditors up until this point but its been a case of robbing peter to pay paul. Now its time to sort it out but I am worried now about our home.

What are everyones experiences regards this?

Hi coochycoo,

You're still on line and we've just got back from picking daughter up from airport, so quick question; who has applied a charging order?

Richard

Richard_S

coochycoo wrote: »

HAD A LIGHT BULB MOMENT :T now I feel .

I thought I was geting stuff sorted via payplan and now I jst heard about charge orders.:(

When are Charge orders applicable?

I am currently in the process of signing up to a DMP with Payplan. I have secured debt which will be met by the normal regular monthly payments and unsecured debt of £70K :eek: which is to go on the DMP.


Is it best for me to go on an IVA because I do not want to be forced to sell my home now I have heard about charge orders on a DMP.

I have dependants and the last thing I want to do is have to sell up, I am the bottom end of the property ladder anyway and the equity is the equivalent of the secured loan so no point in trying to release equity thats already earmarked.

I am worrying now that my home is at risk.

I understand that a lump sum of the equity is payable if you have an IVA. Payplan gave me the choice of either and IVA or a DMP. I want to do whatever has the least affect on our home e.g losing it/forced to sell. We have always made the secured loan payments and mortgage payments. We have always made payemtns to all creditors up until this point but its been a case of robbing peter to pay paul. Now its time to sort it out but I am worried now about our home.

What are everyones experiences regards this?

Hi again,

A charge on your house doesn't automatically put your house at risk, it's a legal instrument that secures a debt on your property and doesn't mean anything unless you fail to meet the repayments to that creditor.

If you're in a DMP then presumably that creditor is included in the plan and provided you see the plan through to it's conclusion you'll hear nothing from them. When their debt is satisfied the charging order will cease to exist.

Hope that helps,

Richard

coochycoo_2

Thanks Richard_S.

No one has said there will be any charge orders on us, its just that I read about them in another post and just had no idea they existed and kind of paniced. Its bad enough as it is waiting for everything to go through.

I am glad we are facing up to things but its so scary.

So if we keep to the agreed payments that creditors will have accepted we should not get any ccj's, charge orders or anything like that?

danno_4

hi.
get this charging order out of you mind and stop worrying.if you are using cccs or any other organisation they should be informing you of this.If you have agreements in place with your creditors as long as you keep to your commitment to them you will be ok.Also forget about doing an IVA at this stage.
kindest regards
danno

bowz25

Hi coochycoo
I am in a similar position to yourself (only just paid first cccs dmp in june) have a similar amount of debt to yourself. We do have equity in the property about 40,000 so i too was worried about house etc.
I was petrified at first and the first few weeks of starting the plan are so worrying but believe me the feeling will go away. I am still worried but do not feel half as much stressed as at the start of the plan and dealing with setting plan up.
I too read about charging orders, defaults ccj etc but my advice is take each day as it comes and deal with all that comes to you on daily basis. If you come on the boards have a moan someone will reply. I have already received a default notice from one creditor after missing only 1 months payment, however i have been given great advice already by people on here.
you are taking responsible steps to deal with your debt and no amount of harrassing phone calls or letters should let you forget that.

I was borderline iva or dmp and cccs advised dmp. I believe charging orders are only applicable if you ever sell the property but i could be wrong.

good luck
bye for now

coochycoo_2

Thanks for your advice and support danno and bowz25.

I feel a lot better now I know our home is going to be ok.

We have about £400 a month to pay towards 9 creditors I am worried sick it won't be enough and they won't agree. Then it will be 15 years before we have paid it off.....I am hoping that we can up the payments as time goes by to clear it sooner.

Finding it hard to sleep hence me on here again at this time of day I mean night no its day again lol!

What happens if the crediors refuse? I know I do not sound positive I just need to know all these things. My OH is dealing with payplan and he is doing so well. He has never been stressed in the 25 years we have been together. Until recently when we had our LBM and we started to acknowledge that we have to face up to our debt and so now he is really stressed. I am positive in his presence saying we can do this. We are determind to pay back every penny we owe. I just do not want to stress him any more by asking these not so positive questions. I do not have the time to call payplan during office hours theres no privacy. OH does all the liaisong when he is on his rest days at home and when the kids are at school.

Sounds kinda mad but thats my mind set right now.

Richard_S

coochycoo wrote: »

Thanks Richard_S.

No one has said there will be any charge orders on us, its just that I read about them in another post and just had no idea they existed and kind of paniced. Its bad enough as it is waiting for everything to go through.

I am glad we are facing up to things but its so scary.

So if we keep to the agreed payments that creditors will have accepted we should not get any ccj's, charge orders or anything like that?

Hi coochycoo,

Yes, that's right, and I can understand why it's an uncertain time for you, but think about your creditors, they're going to be repaid in full, albeit without interest being applied, so they're going to be satisfied with the arrangement.

There's always a possibility that one creditor might not accept but it's unlikely given that you've got Payplan organising the DMP for you.

Regards

Richard