B136(CO) restriction on house

Tyson36

My partner has lots of debt with various financial places and we have been issued with a B136 on our house by lombard direct. He had a personal loan with these for 10k. He is with the ccs paying a monthly amount, lombard getting some of this.
I spoke with Spratt Endicott (lawyers for lombard) and they say it will go to court and that the CCCS amount is not an official agreement to pay off the debt and we will have to agree with lombard separately. And they say there is nothing we can do against this.
The loan with lombard was a personal loan and I didn't think these were secured on the house - so how can they place this restriction on it? Also, they said that we might be forced to sell to release his equity.
I am confused as to why this is happening when we are trying to sort out all the debts and I am worried that more of who he owes money to will come after us in the same way.
Any advice on this would be appreciated as I don't want to lose the house and we don't have an endless pot of cash to keep paying more out. Has anyone/is anyone going through something similar?

nomoneytoday

If the creditors all agreed to the CCCS proposal then they will all have to abide by it...

tostao

take advice from CCCS, then try other free advice services if they cannot help, it takes time but there isn't a debt problem out there that can't be solved.this time next year !!! good luck

Crown

Hi Tyson and welcome to the site,

It is important to know if the loan is unsecured or secured as there is a massive difference in your rights. The first thing is to take anything they tell you with a pinch of salt.. Remember that all they want it the money there owed and you would be shocked at some of the stories that people post about the intimidation tactics the collectors use to try and make you pay.

I was in a similair situation with a loan and was threatened with all sorts. I took advice from the CCCS and just made my agreed normal token payments to them. As long as you have been honest with the amount you earn and pay to the CCCS then dont worry about it.

If Lombard do take you to court the Judge would not look favourably on there claim IF you can show that you have been making payments and have sought the expert advice from the CCCS. A judgement could be made that you X amount each month and generally the interest would be frozen at the time and a charging order would be placed on your property.

This doesnt give them any right to make you sell your home. It would just mean that if you sell your property they have a legal right reclaim there costs and generally the court will also award them statutory interest at 8%.

I was shocked that this could happen on a unsecured loan but as I say the main thing is that they cant make you sell up. I personally think that they are just trying it on as most people will crumble under the pressure. speak to the CCCS and ask there advice.

I wish you the best of luck with it.

davek1

they can apply for a charging order but not force you to sell without permission of the courts.

oppose any application. you may not win but at least they may back down if you put up a fight.

Dave