Time limit on voluntary repossession?

JoJoMinder

Hello!
I've just joined and must say that I've found this forum invaluable as a guide to bankruptcy. I submitted my form today, so it's all very new and a bit scary but being able to find so much information regarding many of my queries has been amazing-so thank you!

I have been advised that I will not lose my family home due to there being 3 charging orders secured against it which puts it into huge negative equity. However, there may be a time, probably after I've been discharged, that I can no longer afford to keep the house. Is there a limited period after this time for the charging order debt to still be covered by the bankruptcy?

Also, I have an attachment of earnings relating to one of the charging orders, once my bankruptcy is declared will this still come out of my wages?

It's good to be on here!!

National_Debtline

Hi JoJo and welcome to MSE,

JoJoMinder wrote: »

I have been advised that I will not lose my family home due to there being 3 charging orders secured against it which puts it into huge negative equity. However, there may be a time, probably after I've been discharged, that I can no longer afford to keep the house. Is there a limited period after this time for the charging order debt to still be covered by the bankruptcy?

There is no time limit on this and if you did later lose the property in this way, then any mortgage shortfall and the charging orders would become provable in the bankruptcy as a contingent debt and written off.


With regard to the attachment of earnings order that should stop once the bankruptcy order is made but unfortunately, the creditor can still apply to enforce the charging order - via an order for sale- even after discharge.


Laura
@natdebtline

JoJoMinder

That's really helpful and puts my mind at rest regarding the charging orders! I'll wait and see what happens to the attachment of earnings issue.
Thanks for your help Laura

JoJoMinder

Just thinking that through, there is potentially £20,000 equity once mortgage is paid off. The charging order that has the attachment of earnings is for £23,000. By stopping paying the order, the creditors would probably want to force a sale to get a chunk back. Maybe I'll lose the house this way-I hadn't been advised about that before now. I guess we'll just have to wait and see over that one.

silvercar

JoJoMinder wrote: »

Just thinking that through, there is potentially £20,000 equity once mortgage is paid off. The charging order that has the attachment of earnings is for £23,000. By stopping paying the order, the creditors would probably want to force a sale to get a chunk back. Maybe I'll lose the house this way-I hadn't been advised about that before now. I guess we'll just have to wait and see over that one.

That would be a big risk for them. They would have to commit to paying out estate agent fees and legal costs, plus their own admin costs. If the house didn't sell for full value they could see very little return as the mortgage would be first call on the proceeds of the sale.

National_Debtline

Hi JoJoMinder


A further question for you to consider - was the creditor with the attachment of earnings actually the first of the three CCJ claimants to obtain a charging order? In the event of a forced sale, those charges will be paid in the strict order that they were originally granted, regardless of who initiates the sale and the size of each debt.


Dennis
@natdebtline