I am cursing my self each day to be in a such a mess!

enthusiasticsaver

It won’t be a second charge and they cannot force you to sell. Be very clear about that unless the court orders it and they will not. A charging order is different. If they go to court ( and that is a big if) the court may decide on a charging order which just sits on your property deeds until it is sold to move home for example and then you have to clear the debt. I am not sure if these happen as frequently now as I have been out of debt management a while. @sourcrates or @fatbelly may know as they are more current. 

enthusiasticsaver

Now I am very worried about 2nd charge is it different then charging order?you said then cant force to sell but then you said they may do?

I meant they MAY go for a charging order. They CANNOT force you to sell

enthusiasticsaver

In answer to your question no don’t treat the business loan differently. It is the amount which concerns me although I see your MBNA is just as high. Sorry about the numerous posts. I am on my phone. 

chullbulla

enthusiasticsaver said:

In answer to your question no don’t treat the business loan differently. It is the amount which concerns me although I see your MBNA is just as high. Sorry about the numerous posts. I am on my phone. 

Sorry bit confuse so it is charging order which creditors can apply? As I always thought second charge is secured loan.
As long as I am not force to sell house which I jointly own, however if I clear the debt down the line, will they remove it from my property?

gwynlas

I chose to self manage my debt management plan and never provided my creditors with a SOA as i did not want them to decide payments for me. When defaulting I wrote and told them that I acknowledged the debt and was only able to make token payments each month and requested they freeze the interest. About three months later I increased the payments to nearer the minimums on each and gradually increased them as my finances inproved over the years. Yes I had phone calls and requests for SOAAs but I told them I foud it stressful and was doing the best I could under the circumstances. The smallest was paid off more quickly than the other two which made me feel better and I then split this repayment amount amongst them.

chullbulla

Yes planning to do own DMP as they get defaulted

sourcrates

The process surrounding charging orders and orders for sale, is a very complex area of law, far too complex to go into that much detail on an internet forum.
But the basics are thus, the start of the process is when a creditor starts legal action against you, if they are successful, then a CO can be applied for almost immediately, obviously there is a process to follow, it would be up to a court to decide on, and you can obviously defend this action.

You can also challenge the original judgement, if you were not able to do so initially, if you get that set aside, the CO goes away with it.

On a jointly owned property, a creditor can only obtain a restriction, not a full blown CO.

Orders for sale are now so rare official figures are no longer kept, again, its quite a complex area of law, I will not pretend to understand all of it, but lots of things are taken into account, who lives there, are there children that would be affected, the list goes on.

Courts normally work on the assumption that its better to keep the family home intact and agree a formal payment arrangement, rather than force a sale.

I would say with a fair degree of certainty that non of this will affect you.

enthusiasticsaver

chullbulla said:

enthusiasticsaver said:

In answer to your question no don’t treat the business loan differently. It is the amount which concerns me although I see your MBNA is just as high. Sorry about the numerous posts. I am on my phone. 

Sorry bit confuse so it is charging order which creditors can apply? As I always thought second charge is secured loan.
As long as I am not force to sell house which I jointly own, however if I clear the debt down the line, will they remove it from my property?

@sourcrates has responded further down and seems pretty confident that none of this should apply to you anyway so I would put it to the back of your mind. Legal action is rarely taken but remains a possibility if there is a lot of equity in an asset like a house. 

As it is jointly owned even if legal action taken they won’t get a charging order but can put restriction on. You will not be forced to sell no matter what. Forget second charge. This is not what that is. If worst case scenario a restriction is applied it will be removed if either F and F offer accepted or debt fully repaid. Hopefully none of this will apply though. 

Let’s hope that the original investment pays out by July. Should this not show on your soa as an asset even if you don’t think it will pay out in full? Obviously I don’t want you to post any identifying information but as a warning to others are you able to expand on what type of investment it was?  

chullbulla

@sourcrates & @enthusiasticsaver

Thank you for explanation as I was worried about my home from last few days, definitely I will try to work with creditors for payment plan and eventually F & F if I recover my money or when I have lump sump available.

Surely I will give a brief details of investment.

My cousin knows a guy from more then 6 years, we all know couple of contacts who has investments with him for more then 4 years and everything was fine, it is a business of buying wholesale electronics in bulk and then sell locally and internationally.

People were getting good return on investment from him and my cousin also told him that we are interested in investment but he said he will tell when he need us, and then time finally came in 2021, but we did not know he was trying to save his sinking ship.

Everything was fine for over 8 months but then everything stops no return or return of investment until yet.

enthusiasticsaver

So not an approved investment scheme then obviously.  I hope you manage to get some redress but a warning to others that anyone who cannot get investment from the usual channels like banks/business financiers is probably struggling. Never invest on hearsay either. Lesson learned for you though and I hope you manage to move past this.