Interim Charging order from 2009

carling1968

Hi

We are in the process of selling our house but have noticed an interim charging order from 2009 on our deeds. To cut a long story short we owed £5000 to sygma bank (amongst other debts) and they took out an interim charging order pending a final order. However we went Bankrupt a week before the final order hearing and the £5000 sygma debt was included in the bankruptcy so the final order was never made.

But the interim order is still on our deeds. Would we have to pay this out of our proceeds or is it a matter of contacting their solicitors and getting it removed ? And also will it hold the sale up ?.

Many Thanks.

National_Debtline

Hi carling1968


This may be a tricky one, to put it mildly. At the time the interim charging order was sought and obtained, were you up to date with any repayments the court had set on a county court judgment, or was the judgment in default? This may determine whether you have grounds for asking the court to discharge this order.


I'll look out for your response.


Dennis
@natdebtline

carling1968

Hi thanks for the reply. As far as I can remember we had defaulted on the debt amongst others and was grouping them all together to add to the bankruptcy. We had no prior arrangement with them or the courts regarding paying it back. The only correspondence we had was off the court a week or so before our Bankruptcy saying they had obtained an interim charging order.

They were going to finalise it but our Bankruptcy happened first. Hope this sort of explains it lol.

debt_doctor

Hi,


To answer your last question first - yes this will likely hold up the process.


With the interim charge, from what you say, the bankruptcy order was made prior to the final charging order hearing, and therefore no final charge exists. This would indeed be the correct process.
An interim charge normally comes with a date for the hearing where either the charge shall be made final or the interim charge shall be dismissed.
It is my view that if that hearing did not take place then the interim order is discharged.
You would need to put this to the Land Registry, who will look at the situation and remove the entry or might contact the creditor for any proof of a final charge. You could also contact the creditor and ask them to remove the restriction.
In any event, you do not owe this money as it never became secured and the debt was discharged by bankruptcy, so you should not pay.
DD

carling1968

Many thanks for the reply. Our conveyers/solicitor have not asked us about it and it was them that sent us the up to date deeds and contract to look at and sign. Our buyers solicitor has asked if a certificate will be provided regarding it, but again our solicitor has not mentioned it to us.

Maybe it's now irrelevant that's why they have not asked us any details about it ?

Itsallgonepearshaped

Hi.

I was just wondering if you managed to get this sorted and what you had to do as I am in exactly the same position st the moment with an interim charge from 2009 in favour of NatWest which wasn’t made final before my bankruptcy but it has stayed on the deeds for the house

Thanks

National_Debtline

Hi Itsallgonepearshaped


As this thread is old it is unlikely you will get a response. However usually when an interim charging order is obtained, but not made final before the bankruptcy order is made, it should be removed. The debt should also have been written off as part of your bankruptcy.


I'd suggest following Debt Doctor's earlier advice and contact the Land Registry and creditor to ask them to remove the interim charge on the basis it was never made final and was included in your bankruptcy.


Best wishes


Susie
@natdebtline