Property Charge

Fd34

Hi, 

I have a charge on my property from 2008 with BlackHorse that I need removed. I went bankrupt in 2011 and understand that all my debts were wiped however the charge still appears on the Land registry. Does anyone know how I can get this removed and or a direct contact at BlackHorse as I cannot seem to get through to the correct department, I just keep getting passed around the houses before being disconnected.

Many Thanks 

MEM62

As far as I know, only unsecured debts are included in your bankruptcy.  If the debt is secured against your property the debt will need to be cleared for the restriction to be removed.  Someone far cleverer that I will be along to confirm or otherwise.   

JCS1

MEM62 said:

As far as I know, only unsecured debts are included in your bankruptcy.  If the debt is secured against your property the debt will need to be cleared for the restriction to be removed.  Someone far cleverer that I will be along to confirm or otherwise.   

Agreed, bankruptcy covers unsecured debts.  

Mouse007

MEM62 said:

As far as I know, only unsecured debts are included in your bankruptcy.  If the debt is secured against your property the debt will need to be cleared for the restriction to be removed.  Someone more knowledgable far cleverer that I will be along to confirm or otherwise.   

Correct, only unsecured debts.

What is the charge for? Did Black Horse obtain a judgment against you in 2008? If so they could have then obtained a charging order against your house to secure your debt to them. In which case I don't think you can have it removed without paying them back first. Also note the annual interest charge if the debt was not regulated by the Consumer Credit Act and the risk of them requiring you to sell your home.

You need to find out more about it before poking the bear.

sourcrates

What was the charge for, was it a secured loan, non payment of an unsecured loan ???

Fd34

Thank you, it was for non payment of an unsecured loan. 

Fd34

It say on the Land registry that it was an equitable charge created by an interim charging order at the local court in 2008

sourcrates

Fd34 said:

Thank you, it was for non payment of an unsecured loan. 

Fd34 said:

It say on the Land registry that it was an equitable charge created by an interim charging order at the local court in 2008

A CO turns an unsecured debt, into a secured one, however it appears to have been an interim order, and not a final CO, and somehow you managed to keep the house, despite the bankruptcy, presumably as there was no equity in it ?

In which case, as you were made bankrupt before the final charging order was made, that is the end of the matter, the creditor has no where to go now with this.

I would contact the Land Registry and explain the situation to them, and see what there advice is.

Fd34

Yes, in 2011 there was no equity in the property so I was able to keep it after the bankruptcy. Thank you for your advice I will try contacting the land registry. 

ToxtethO'Grady

The Land Registry will advise you contact the creditor or the solicitors who managed the charging order for that creditor, they will apply to withdraw the charge ( RX4 form) as they applied for it. This is quicker than if you or a solicitor for you applies to cancel the charge (RX3 form) as the solicitor managing the charge is contacted and has to agree to it.

If either of those forms are entered it stops the other form being applied for until the process is followed and completed.

N.B I always got confused on which way around the forms were so it may turn out it is the other way around! Sorry if my advice is a little bit off it's been a few years since I last did one

Minkym00

It's worth saying that, yes, an interim charging order cannot be enforced. However it may have been made final (i.e. court ordered it) but Land Reg were not informed. Happens a lot. You need to contact the charge holder/ their solicitors to find out if it the charging order was ever made final.