Charge order on property

Popadaisy

Hi advice please
My husband had an accident years ago it went to court he lost 🥺 the insurance company to cover court costs send bust before any claim was made now they have put a charge on our property for said costs it's jointly owned can they make us sell to pay court costs 
Thank you

DCFC79

Susantina69 said:

Hi advice please
My husband had an accident years ago it went to court he lost 🥺 the insurance company to cover court costs send bust before any claim was made now they have put a charge on our property for said costs it's jointly owned can they make us sell to pay court costs 
Thank you

Have they contacted you asking for money ?

Popadaisy

Yes they did years ago 

bradders1983

They cant make you but the minute you sell up, either because of a) a normal house move, or b) probate, then they will take their cut.

fatbelly

Are you asking if the debt was covered by his bankruptcy?

If so, we'll need more detail

(Dumping this here for future reference
It has been held that costs are contingent liabilities for the purpose of proving in insolvency proceedings. Where a bankrupt is involved in any claim before the court, whether as claimant or respondent, and proceedings have been issued prior to the date of the bankruptcy order, any order for costs made against the bankrupt, whether made before or after the date of the bankruptcy order, is a provable debt in the bankruptcy on the basis that it is a contingent liability, the contingency being a risk of adverse costs arising when the court proceedings are issued1 . 1. Re Nortel and others [2013] UKSC 52 )

bradders1983

fatbelly said:

Are you asking if the debt was covered by his bankruptcy?

If so, we'll need more detail

I assume the OP has posted it in the wrong section and there is no BK involved here.

Minkym00

Yes they can make you sell. Once a charging order is made, a charge holder can apply to the court at any time for an "order for sale", even if the property is jointly owned. Once sold they will be be paid out from your husband's interest in the property, and not from yours (assuming the order was made in his name only). If there is a bankruptcy involved (and it's not clear that there is) then the charge will stand in any case as it is a secured debt.  

Popadaisy

Hi there is no bankruptcy involved . They said not make you bankrupt just went straight to charge order

Minkym00

Is there any equity in the property? If not, that may have been why they opted for a charging order instead of a bankruptcy petition. If there isn't any equity then the creditor is not going to force a sale. However you may want to consider settling the debt in any case as they are entitled to charge statutory interest at 8%, and this can add up significantly the longer the debt is outstanding.        

fatbelly

Susantina69 said:

Hi there is no bankruptcy involved . They said not make you bankrupt just went straight to charge order

Thanks for clearing that up. I thought you had posted in the bankruptcy forum and asked a very interesting question.

Hey, your question is still interesting but.. you know.

So the charging order will be registered as a restriction at the Land Registry. Generally what happens is that is stays there until you move, then the conveyancing solicitor pays it off.

Strictly speaking all they need to do at that point is comply with the terms of the restriction. If you want to ask more questions about that you need this long-running thread

Charging Order? The myth

As for orders for sale, they are as rare as hen's teeth. Not going to happen if it is your sole residence - no judge is going to make you homeless over a small debt that isn't yours and is already secured

Debt Camel has written about this here:

Are you worried about a charging order?

Popadaisy

Ok thanks does a charge affect your credit rating