Charging order Advice

Samsung_Note2

Hope this is the right section..if not could Mod please move.:o

Long story short..ive got a charging order on the house,its for a debt back in 2006..charging order taken out on home in early 2010 prior to the bankruptcy in late 2010.

Not paid anything off the balance since the charging order...don't see any reason to as will be taken care of when house is sold or remortgaged,reason being is they continued to add interest each month (£100 ish) and basically couldn't see the point in making myself skint and not even covering the interest,original debt was £3000 ish and with interest ended up at £9000.



Can they force sale for £9000...two dependants aged 10yrs old.

If they cant/wont force sale given its been seven years since order was granted,can they legally demand monthly payments.??

Just to make clear..yes im liable and yes i will pay my debts,but as they ignored repayment offer back in 2009,and went for charging order my attitude is now,i"ll pay when im ready.

Arleen

Whether they can keep adding interest to charging order depends on what the original debt was for.

And they can try to go and force the sale of the home to collect on the order - which is why once they got it this debt became very important to not ignore. You can read about the procedure at CAB's website: https://www.citizensadvice.org.uk/debt-and-money/action-your-creditor-can-take/charging-orders/ although it seems unlikely for 9k and with kids in the home (though lack of payments works against you).
One obvious benefit for you to repay it is that it will stop the amount from growing.

Samsung_Note2

Arleen wrote: »

Whether they can keep adding interest to charging order depends on what the original debt was for.

And they can try to go and force the sale of the home to collect on the order - which is why once they got it this debt became very important to not ignore. You can read about the procedure at CAB's website: https://www.citizensadvice.org.uk/debt-and-money/action-your-creditor-can-take/charging-orders/ although it seems unlikely for 9k and with kids in the home (though lack of payments works against you).
One obvious benefit for you to repay it is that it will stop the amount from growing.

Sorry should have said that the interest was carried on after the charging order was granted (think it shows as interim,not full...check land registry last year) until the loan would have reached its full term.

Loan was from Welcome Finance at a hideous APR...for windows,think original amount was about £2700.

I believe when a CCJ is granted normally an arrangement is set up to pay...ive never paid over the last seven years (possibly more) as ive never agreed or order by court to Pay XYZ.

Looking at remortgaging next september and explained im happy to pay a settle figure.

The lady from supervisor who called me from the legal department,when asked "do i have a legal obligation to pay each month" said she didn't know.

Not looking to worm my way out of this..i owe the money and will pay it,just need to know do i legally need to pay monthly or can i settle it in a lump sum when convenient for me (sept 2019).

Arleen

If they did nothing about it for all the years, with no payment happening, they are unlikely to try
enforcement (could try to force the sale but that's really unlikely to happen, or even be tried) and unless there is a court order for you to pay monthly you don't have to, but in theory, you are at risk of having the sale of your house forced.

A prudent thing may be to start putting money aside. If they decide to move forward you will be able to offer that money + promise X monthly as an alternative repayment plan. And if that never comes you will have nice safety nest of money.

fatbelly

No, there's no obligation to pay monthly - the debt is secured and the charge will be discharged when you sell up.

Not a solely owned debt on a jointly owned property is it?

Orders for Sale are so rare I've never seen one. Debt Camel has an article here

https://debtcamel.co.uk/charging-order-sale/

sourcrates

Charging orders are very common.

Orders for sale are so rare they no longer keep records on them.

Samsung_Note2

fatbelly wrote: »

No, there's no obligation to pay monthly - the debt is secured and the charge will be discharged when you sell up.

Not a solely owned debt on a jointly owned property is it?

Orders for Sale are so rare I've never seen one. Debt Camel has an article here

https://debtcamel.co.uk/charging-order-sale/

To be honest i'm not 100% sure...think the wife also signed the agreement with Welcome finance as the sales guy was insistent we were both there when he sold us the policy.

Having said that i'm 99% sure the wife has never had a CCJ (charging order) and basicly i was the only one they chased for Money,dont recall them ever chasing her and all comms is directed to me.

Can i ask why that is...?

Samsung_Note2

Arleen wrote: »

If they did nothing about it for all the years, with no payment happening, they are unlikely to try
enforcement (could try to force the sale but that's really unlikely to happen, or even be tried) and unless there is a court order for you to pay monthly you don't have to, but in theory, you are at risk of having the sale of your house forced.

A prudent thing may be to start putting money aside. If they decide to move forward you will be able to offer that money + promise X monthly as an alternative repayment plan. And if that never comes you will have nice safety nest of money.

Thats a good idea...as said im happy to pay what i owe .:)

fatbelly

Samsung_Note2 wrote: »

To be honest i'm not 100% sure...think the wife also signed the agreement with Welcome finance as the sales guy was insistent we were both there when he sold us the policy.

Having said that i'm 99% sure the wife has never had a CCJ (charging order) and basicly i was the only one they chased for Money,dont recall them ever chasing her and all comms is directed to me.

Can i ask why that is...?

Charging Order? The myth

Samsung_Note2

I understand a charging order cannot be obtained without a CCJ...i dont recall seeing a CCJ on my credit file for this matter.
They took me to court late 2009 or early 2010 (cant be sure as the medication i was taking really made me quite ill) yet ive checked credit file fairly regular over the years and no CCJ was evident,obviously would have only fell off a fairly recently...i do have one in 2010 but for a water bill that was disputed.

Possibly a silly question...as ive got doubts the wife was included in any of this and i really am struggling to remember a CCJ being added to credit file,would the Creditor have records of when a CCJ was obtained and if it was single name or joint names.

Will double check but pretty sure on land registry states Interim order...could they possibly suggest a restriction as opposed a Charging order.

Still reading the link from fatbelly...gonna take a while.

fatbelly

There would have been a ccj and the court number usually (I think) gets mentioned in the restriction, which is probably what you have.

You do need to check these things on the Land Registry site - costs £3

https://www.gov.uk/search-property-information-land-registry

is genuine - there are a lot of fakes out there

The interim order is enough for the land registry so that is usually what gets a mention. The entry should clearly state if it is a restriction or a full charge

The court should still have a record of the particulars of claim and the relevant dates.

Are you sure this was a ccj that went to a charging order or was it a secured loan? My memory is that they used to do these 10 years ago. If that's the case, the advice is completely different