MBNA Putting Claim on House - Help Please

Tabby_Kitten_2

Several years ago I was just over my limit on a credit card with MBNA, when my contract was not renewed and my job ended. At around the same time I realised that the same card was very out of date so I requested a new one. Due to my change in circumstances this was declined. I then negotiated a payment plan and requested that all interest was frozen on the account. all statements seemed to be adding interest but after a couple of calls and due to MBNAs habit of not updating written data regularly, I didn't worry unduly. Months later I discovered that I should have been told to contact another department to request a freeze in the interest on the account therefore it was really not done as reflected in my statements. I was told that as the interest had now caused my account to go over a level, that it was no longer an option to freeze it and negotiated payments which were crippling, to get the account paid off. Several months passed and again, by chance, I discovered that the amount that I was paying was not even covering the interest accumulating on the account which was growing at an alarming rate. At this point I was undergoing personal trauma's and all of my finacial payments wentto pot. This account was sold to a solicitor who is now about to put a charge on my house which is jointly owned with my partner (the card was only in my name). They appear to have been to court at the begining of this year and this is the next step, I have not received notice of this but my post box is outside of the property and not secure. I have phoned and asked if we can come to an agreement now and was told it has to wait until the charge is put on my property and that if the amount is not satisfactory, they will need to force a sale on the house this will leave us homeless as my partner is on incapacity benefit and income support and is realistically unlikely to work again and I look after our children.

cold_angel

HI,

Now this I can help you with. I work at a known debt company.

First of all, have you had a CCJ for this debt? Or have they gone straight to the court for the Charging Order?

Tabby_Kitten_2

They claim they have already got a CCJ though I've never received it.

Tabby_Kitten_2

I have until the 4th to appeal & they go back to court in sept to get the charge put on

cold_angel

Ok, Im just going to put this on for you as I am about to go offline.

There are 2 types of charging order. These are Traditional and Hybrid.

Now with the Traditional Charging Order you first have to have a CCJ and then default on it (not pay it) and then the creditor will apply to enforce the CCJ (Bailiff/Attachment of Earnings/Benefit/Charging Order) If they choose to enforce it with a Charging order you will receive a letter form them stating this and when the court hearing is to take place and where, IT IS IMPORTANT THAT YOU ATTEND THE HEARING, mainly to put your side across and firght the application. Just because they appy for one does not mean they will get one granted!! If a charge is awarded to the creditor the judge will look at you income and expenditure and see if u can make any payments towards the debt. if you can the payments will be set and that will be that.

The Hybrid Charging Order is done quite similarly to the tradition but with also very different. The creditor will apply for the CCJ and the Charge simultainiously. basically, the creditor will say the customer has a house with equity and we want our debt secured. THIS HYBRID ORDER IS BECOMING MORE COMMON AND MORE OR LESS ALWAYS GO THROUGH. again the court will go through your income and expenditure to see if u can pay anything towards the debt. if u can the payments will be set.

Heres the bit you'll want to know. a TRADITIONAL CHARGING ORDER is the only one where they have the possibility of applying for an Order for Sale. These asre VERY RARLEY granted by the courts. So at the moment all your creditor is doing is trying to bully you into making payments towards the debt.

I hope this clarifies it for you. if not PM me or call CONSUMER CREDIT COUNSELLING SERVICE 0800 138 1111 MON-FRI 8AM-8PM AND THEY WILL BE ABLE TO DISCUSS WITH YOU AND ANSWER ANY OTHER QUERIES OR WORRIES THAT YOU HAVE.

ALL THE BEST

cold_angel

Almost forgot, it would be advisable to seek some legal advice.

You can contact Community Legal Services on 0845 345 4345 mon-fri 9-5 and they will be able to go through this with you aswell. They may also be able to provide representation for the hearing.

they give information and advice regarding your legal rights and they can also advise on debt problems.

if you have any other questions as i say you can PM me. I will keep a look out for you as well tho.

Hope it all works out an let us know what happens.

Take care

cold_angel

REMEMBER: JUST BECAUSE THEY APPLY, IT DOESN'T MEAN THAT THEY WILL GET IT.

YOU WOULDN'T BE MADE TO SELL THE HOME FOR AN UNSECURED DEBT THATS THE POINT OF IT BEING UNSECURED.

ALL THE CHARGE WILL DO IS SECURE IT AGAINST THE PROPERTYAND WHEN ITS SOLD THEY WOULD GET PAID BEFORE YOU GET ANY EQUITY.

Tabby_Kitten_2

Thanks for all the help with this one, it is now just a case of seeing what happens in Sept