Charging Order, Bankruptcy and a Satisfied Debt.

pluspad

Hi all,

I'll try and be brief. I took out a Hire Purchase agreement for a very expensive car in 2008, almost £60,000. Unfortunately my circumstances changed dramatically in a very short space of time after that, and I declared bankruptcy December 2009.

The finance company managed to get a CCJ hearing literally the day before I was officially declared bankrupt, and in it they successfully argued to have a Charging Order placed on my house.

This wasn't the worse news as we bought our house at the end of 2007 just before the bubble burst, and we were now (end of 2009) in negative equity to the tune of £100,000. So at least they weren't about to make us sell our house any time soon.

Fast forward to today, and that CCJ hearing in 2009 is the very last time I heard anything about the Charging order. My bankruptcy has been and gone, and I am on my way to having my finances in some sort of respectable order again.

I checked my credit report this week and to my surprise the car finance company has updated my record for the loan to "SF" - Satisfied but recorded as Defaulted. Brilliant I thought!!

But now I am confused as to what this actually means, does it mean they no longer want to collect the money via the charging order?

I got a copy of the Land Registry for my house and can see the charging order on there with a status of "Interim". There is no Final order as far as I can see? Does this mean it wasn't completed?

I guess what I really want to know is, if I sell my house will the finance company take the money they are owed?

jonesMUFCforever

They will collect when you try to sell the house.
Your solicitor won't be able to transfer good title to any purchaser until this order has been discharged ie paid off or settled.

suziqqq

As above I have sold my house and the charging order on my house is being paid from equity

JCS1

If it wasn't a final charging order, then it would have been included in your bankruptcy.

Have you cleaned up the credit file? There are template letters, etc on the bankruptcy board.

pluspad

But the loan says "satisfied" on my credit report, does that not mean anything?

JCS1

pluspad wrote: »

But the loan says "satisfied" on my credit report, does that not mean anything?

Should be no later than your discharge date from bankruptcy:

https://forums.moneysavingexpert.com/discussion/677875

fermi

As said, the default date on your credit report should say no later than your bankruptcy date, with the satisfaction date no later than your discharge date.

If only an interim charging order was made before your bankruptcy date, then the bankruptcy should have prevented it being made final, as appears to have been the case?

As the final charging order could not be made, I'm not sure what happens to the interim one? You would imagine that it should have been removed from the land registry record at some point, but not something I've really looked into so that is just a best guess.

Hopefully someone can say for sure, but regardless you should probably make enquiries about that to see if it should have been or can be taken off now?

pluspad

fermi wrote: »

As said, the default date on your credit report should say no later than your bankruptcy date, with the satisfaction date no later than your discharge date.

If only an interim charging order was made before your bankruptcy date, then the bankruptcy should have prevented it being made final, as appears to have been the case?

As the final charging order could not be made, I'm not sure what happens to the interim one? You would imagine that it should have been removed from the land registry record at some point, but not something I've really looked into so that is just a best guess.

Hopefully someone can say for sure, but regardless you should probably make enquiries about that to see if it should have been or can be taken off now?

Thanks for this and the amazing thread regarding cleaning up your credit file.

I have not actually bothered cleaning up my report as I don't plan on getting any more credit for the foreseeable future, and from what I can see the majority fall off in around 18 months anyway.

Who do you suggest I speak to regarding getting the interim order removed? Would it be the Land Registry?

Thanks again...

Rrushi_Shqiptar

pluspad wrote: »

Thanks for this and the amazing thread regarding cleaning up your credit file.

I have not actually bothered cleaning up my report as I don't plan on getting any more credit for the foreseeable future, and from what I can see the majority fall off in around 18 months anyway.

Who do you suggest I speak to regarding getting the interim order removed? Would it be the Land Registry?

Thanks again...

I was of the same opinion, maybe a little scared/embarrassed too look but I did and I am glad I did. My Bankruptcy drops off my file DEC 2015. I have been cleaning my files up including getting CCJ's updated to satisfied as they had been paid in full and this was not showing.

I think you may want to start getting them in order now because in 18months you don't want to still be battling to get the correct info showing. You may want a "proper" current account etc.

Land_Registry

Charging orders and their entry is covered in our online guidance

Removal is then covered in another piece of guidance

In most cases a beneficiary will register the interim charging order but not the final one as in essence they protect the same interest until dismissed for example.