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CCJ - charging order on land
StanleysMama
Posts: 15 Forumite
Hi,
This thread is on Consumer Rights board but kindly been advised it might be better placed here.
First time poster, not split out in the suggested format due to being quite far along in process. Happy to revise format if this is needed.
Our builder has left us halfway through the job, we have paid in full (stupid I know...we trusted him as he completed work on our previous house). We have dealt with him as a sole trader (even though he also has a limited company).
We made a claim against him via MoneyClaim online, capped it just under £10k to do without legal representation (can’t afford it) and for speed - even though the total to complete the job will be more like £20k.
CCJ has been issued but not expecting him to pay us as he has told us he is bankrupt but when we have looked into it, he isn’t actually (but is on the verge of it).
We want to put a charge on his property as we know he has sold his house (he is also getting divorced) so will get money from that. This happened in late October, conscious we are up against the completion deadline. I sent the completed application for charge on land just before christmas and am expecting a call from the court to make the £100 payment tomorrow.
Builder has made no attempt to pay us back or help our situation: no bathroom or kitchen in the property, currently moving between family with our 2 year old son. We are unable to complete the work without this money, have maxed out credit cards / money loan etc.
There doesnt seem to be much info on the internet for a claimant in this situation, mostly directed towards the defendant....
Any advice on the next stages?? questions I am looking into now:
1. how / when will the court get in touch after i have paid the application fee?
2. does the interim order delay the sale completing? I have read that “A restriction will be placed on the Land Registry, stopping you from selling your house until the final charging order hearing” but doesn’t appear on other documents I have read.
3. how do i register the charge (briefly looked and forms seemed to be for mortgage providers)
4. do i need to give a copy to the defendant and the joint owner (wife / soon to be ex-wife who was listed on the title) - what do i say when i give it to them? or do i just post it (happy to do face to face).
5. i read something online that said "The White Book urges judgment creditors to apply for a non-standard restriction under section 46 of the LRA 2002 at the hearing to consider whether or not to make the interim order final. Standard Form Restrictions are entered into the Register by the Registrar under section 42 of the LRA 2002. Section 46 grants courts the power to require the registrar to enter a restriction and it is open to the judgment creditor to suggest a form of words that would require certification by an applicant for registration that he had given notice of the proposed transfer 14 days before the date of the transfer, thus giving the judgment creditor time to consider what he wants to do to protect his position. In those circumstances the judgment creditor could insist that the judgment debtor’s solicitor give an undertaking on his client’s behalf that the debt (or some of it) will be discharged out of the proceeds of sale or face the prospect of an application for an injunction stopping the transfer going ahead." Obviously i dont want to go through all of this and still not get the money owed as stated in the CCJ. Any advice??
I am searching the internet for answers to the above (please don't think i'm being lazy by asking these, just hoping someone might be able to explain in quite simple terms!).
many thanks for any help / advice offered [IMG]file:///C:/Users/GILBESC/AppData/Local/Temp/1/msohtmlclip1/01/clip_image001.gif[/IMG]
This thread is on Consumer Rights board but kindly been advised it might be better placed here.
First time poster, not split out in the suggested format due to being quite far along in process. Happy to revise format if this is needed.
Our builder has left us halfway through the job, we have paid in full (stupid I know...we trusted him as he completed work on our previous house). We have dealt with him as a sole trader (even though he also has a limited company).
We made a claim against him via MoneyClaim online, capped it just under £10k to do without legal representation (can’t afford it) and for speed - even though the total to complete the job will be more like £20k.
CCJ has been issued but not expecting him to pay us as he has told us he is bankrupt but when we have looked into it, he isn’t actually (but is on the verge of it).
We want to put a charge on his property as we know he has sold his house (he is also getting divorced) so will get money from that. This happened in late October, conscious we are up against the completion deadline. I sent the completed application for charge on land just before christmas and am expecting a call from the court to make the £100 payment tomorrow.
Builder has made no attempt to pay us back or help our situation: no bathroom or kitchen in the property, currently moving between family with our 2 year old son. We are unable to complete the work without this money, have maxed out credit cards / money loan etc.
There doesnt seem to be much info on the internet for a claimant in this situation, mostly directed towards the defendant....
Any advice on the next stages?? questions I am looking into now:
1. how / when will the court get in touch after i have paid the application fee?
2. does the interim order delay the sale completing? I have read that “A restriction will be placed on the Land Registry, stopping you from selling your house until the final charging order hearing” but doesn’t appear on other documents I have read.
3. how do i register the charge (briefly looked and forms seemed to be for mortgage providers)
4. do i need to give a copy to the defendant and the joint owner (wife / soon to be ex-wife who was listed on the title) - what do i say when i give it to them? or do i just post it (happy to do face to face).
5. i read something online that said "The White Book urges judgment creditors to apply for a non-standard restriction under section 46 of the LRA 2002 at the hearing to consider whether or not to make the interim order final. Standard Form Restrictions are entered into the Register by the Registrar under section 42 of the LRA 2002. Section 46 grants courts the power to require the registrar to enter a restriction and it is open to the judgment creditor to suggest a form of words that would require certification by an applicant for registration that he had given notice of the proposed transfer 14 days before the date of the transfer, thus giving the judgment creditor time to consider what he wants to do to protect his position. In those circumstances the judgment creditor could insist that the judgment debtor’s solicitor give an undertaking on his client’s behalf that the debt (or some of it) will be discharged out of the proceeds of sale or face the prospect of an application for an injunction stopping the transfer going ahead." Obviously i dont want to go through all of this and still not get the money owed as stated in the CCJ. Any advice??
I am searching the internet for answers to the above (please don't think i'm being lazy by asking these, just hoping someone might be able to explain in quite simple terms!).
many thanks for any help / advice offered [IMG]file:///C:/Users/GILBESC/AppData/Local/Temp/1/msohtmlclip1/01/clip_image001.gif[/IMG]
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Comments
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This is the most important bit.StanleysMama wrote: »CCJ has been issued but not expecting him to pay us as he has told us he is bankrupt but when we have looked into it, he isn’t actually (but is on the verge of it).
But...
That's where it's going to get fun.We have dealt with him as a sole trader (even though he also has a limited company).
What's in his own name, what's in the limited company's name?
Of the stuff in his name, what can he claim as tools of the trade to allow him to keep working?
A charge against land won't help with any of that. You'll simply be paid as and when the land ever gets sold. It doesn't force the sale. Are you talking about one parcel of land/property, the sale of which is already proceeding? Or two separate plots?Builder has made no attempt to pay us back or help our situation: no bathroom or kitchen in the property, currently moving between family with our 2 year old son. We are unable to complete the work without this money, have maxed out credit cards / money loan etc.
We want to put a charge on his property as we know he has sold his house (he is also getting divorced) so will get money from that.
You've been awarded the judgement, so a court has agreed your case is valid and he owes the money. If he sells the property, he can pay you. Doesn't mean he will, of course...
But if he's on the verge of bankruptcy, he's probably got other creditors, too - why are you a higher priority than them? Why should you get your £10k at the expense of them?0 -
What's in his own name, what's in the limited company's name?
Of the stuff in his name, what can he claim as tools of the trade to allow him to keep working?
House in his name and wifes.
He has a new BMW and a van for work. He said the car is his dads but been told thats another lie (obv cant trust anything he says but also dont know for sure it is his or if owned vs hired). Van for work, though he is currently working for cash in hand (I know the people he is working for).A charge against land won't help with any of that. You'll simply be paid as and when the land ever gets sold. It doesn't force the sale. Are you talking about one parcel of land/property, the sale of which is already proceeding? Or two separate plots?
One property, his family home which he is now selling (accepted an offer late october). I knew the property was up for sale due to their divorce hence putting the charge on the land.You've been awarded the judgement, so a court has agreed your case is valid and he owes the money. If he sells the property, he can pay you. Doesn't mean he will, of course...
But if he's on the verge of bankruptcy, he's probably got other creditors, too - why are you a higher priority than them? Why should you get your £10k at the expense of them?
I know he has no intention of paying us, he has not responded to any contact I have made.
I assume he will have other creditors. I'm unsure of their circumstances but I would say we are a higher priority as our property is inhabitable currently due to him (no bathroom / kitchen / electrics etc) and we cant afford to finish the works without this money. Im assuming other creditors may be historic and therefore not in same position (obviously just assuming but no charges appear on the title). also aware he owed money to skip hire, window company etc but they have dealt with the limited company rather than personally.0 -
StanleysMama wrote: »
House in his name and wifes.
He has a new BMW and a van for work. He said the car is his dads but been told thats another lie (obv cant trust anything he says but also dont know for sure it is his or if owned vs hired). Van for work, though he is currently working for cash in hand (I know the people he is working for).
One property, his family home which he is now selling (accepted an offer late october). I knew the property was up for sale due to their divorce hence putting the charge on the land.
I know he has no intention of paying us, he has not responded to any contact I have made.
I assume he will have other creditors. I'm unsure of their circumstances but I would say we are a higher priority as our property is inhabitable currently due to him (no bathroom / kitchen / electrics etc) and we cant afford to finish the works without this money. Im assuming other creditors may be historic and therefore not in same position (obviously just assuming but no charges appear on the title). also aware he owed money to skip hire, window company etc but they have dealt with the limited company rather than personally.
I see your logic as to why you believe you should be a higher priority due to your home being uninhabitable without the money, however i think you might be looking at it a bit simplistically. I’m not sure the official Receiver will be as empathetic, part of the bankruptcy process looks at preferential debts, would be worth you reading up on, basically all creditors have to be treated equally, if he were to pay you and not the other creditors before going bankrupt the OR could look to recover the money and share it amongst the others.0 -
I see your logic as to why you believe you should be a higher priority due to your home being uninhabitable without the money, however i think you might be looking at it a bit simplistically. I’m not sure the official Receiver will be as empathetic, part of the bankruptcy process looks at preferential debts, would be worth you reading up on, basically all creditors have to be treated equally, if he were to pay you and not the other creditors before going bankrupt the OR could look to recover the money and share it amongst the others.
Thank you for such a quick response. I don't think he is actually going to declare bankruptcy, just saying it to stop me chasing payment from him. There were no other charges on the property when I got a copy of the title a couple of weeks ago.
So if he doesn't declare bankruptcy is the charge on the land more likely to be successful??
I think he is waiting until he has the proceeds form the property, will then give that money to his parents or spend it, then declare bankruptcy. He has just returned from a holiday so isn't that hard up (or could have sold it and worked that week - on our house or the other job he is doing for cash in hand).0 -
You need to get the Charging Order registered against the property before the sale completes.....
https://www.gov.uk/government/publications/third-party-debt-orders-and-charging-orders-ex325
https://www.gov.uk/government/publications/charging-orders/practice-guide-76-charging-orders
https://www.gov.uk/government/publications/charging-orders0 -
StanleysMama wrote: »Thank you for such a quick response. I don't think he is actually going to declare bankruptcy, just saying it to stop me chasing payment from him. There were no other charges on the property when I got a copy of the title a couple of weeks ago.
So if he doesn't declare bankruptcy is the charge on the land more likely to be successful??
I think he is waiting until he has the proceeds form the property, will then give that money to his parents or spend it, then declare bankruptcy. He has just returned from a holiday so isn't that hard up (or could have sold it and worked that week - on our house or the other job he is doing for cash in hand).
If what you are suggesting is true, giving money to his parents is a bad move on his part and could land him in a lot of trouble. If you are certain he is taking cash in hand jobs, you should report him for tax evasion. You may not get your money back, but if he does go bankrupt and you suspect he has been less than honest, inform the receiver of your suspicions.May you find your sister soon Helli.
Sleep well.0 -
You need to get the Charging Order registered against the property before the sale completes.....
https://www.gov.uk/government/publications/third-party-debt-orders-and-charging-orders-ex325
https://www.gov.uk/government/publications/charging-orders/practice-guide-76-charging-orders
https://www.gov.uk/government/publications/charging-orders
thank you, i have seen the above, trying to work my way through the guides but quite alot of jargon and wondered if someone had any practical advice on it. thanks.0 -
If what you are suggesting is true, giving money to his parents is a bad move on his part and could land him in a lot of trouble. If you are certain he is taking cash in hand jobs, you should report him for tax evasion. You may not get your money back, but if he does go bankrupt and you suspect he has been less than honest, inform the receiver of your suspicions.
Thank you. I am just trying to focus on getting some money back so we can complete some of the vital work and move back in. If we get the money owed on CCJ I will probably stop there but if we don't then I will look at this.0 -
Why not escalate to high courtDon't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.0
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Why not escalate to high court
Thanks.
I think I will look at other options if the charge on the land is unsuccessful but as he is in process of selling the property this seemed like the best chance of getting some money back.
Then would look at freezing bank account.
Will look into High Court order next i think.0
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