Charging Order Help please!!!

Mark7972

Hi,

I have looked on previous threads but am unable to find a definitive answer. My wife and I jointly own our house outright with no mortgage, We have entered into a DMP (circa £50k @ £725p/m) with Payplan 2 months ago. I have received a CCJ for around £3k, I have now received paper work for a charging order. The debt is solely in my name but my wife received paperwork as joint owner of our property. We have tried to get a mortgage/secured loan to pay off our debts but have been unsuccessful. I thought about objecting but from what I read there is no chance of my objection being successful.

We are contemplating selling up and downsizing to pay everything off but with the charging order will this be impossible?

Can the creditor force a sale even if i only own half the property?

As you can imagine this is causing some sleepless nights so would appreciate hearing from someone who can let us know what to expect rother than us worrying about the unknown.

elsien

Have you seen this?

https://www.stepchange.org/debt-info/debt-collection/charging-orders-and-my-home.aspx#:~:text=A%20charging%20order%20secures%20a,judgment%20(CCJ)%20against%20you.

sourcrates

Orders for sale are now so rare official figures are no longer kept, you can relax, as that isn`t going to happen.

If the debt is in your name only, and the house is jointly owned, then the best they can do is obtain a restriction.

This just sits on file until the house is sold, at some point in the future, however long that may be.

Do not sign any documentation without taking legal advice.

Try posting on this thread -

Charging Order? The myth - Page 488 — MoneySavingExpert Forum

The Land Registry rep is a regular contributor to it.

fatbelly

This doesn't really change anything. I presume the debt was in the DMP so it will continue to be paid. When fully paid, you shoud insist that the restriction is removed.

If you want to sell, the restriction does not stop you. You just have to issue a certificate, as sourcrates' thread explains. 

All a bit pointless by the creditor. A lot of expense that may take years to get back.

Ps. If you do sell and pay the debts, you know about full & final settlement?

enthusiasticsaver

As @fatbelly says you are unlikely to be forced to sell.  It rarely if ever happens and certainly not for £3k.  Presumably this was for a secured loan you defaulted on and is being repaid via the DMP? 

Just  ignore it until the DMP is finished the debt paid off then ask for the charging order to be removed. Sell and downsize if you want but not for the charging order/DMP. You can still sell it but the order will need to be repaid on sale. Personally I would not take that route unless you really want to sell anyway.  You will struggle to get a new mortgage with the defaults and charging order so will you be able to buy outright?   

fatbelly

It wouldn't be a secured loan but could be almost anything. Whatever it is, they probably don' realise how ineffective a charging order is for a sole debt on a joint property

enthusiasticsaver

fatbelly said:

It wouldn't be a secured loan but could be almost anything. Whatever it is, they probably don' realise how ineffective a charging order is for a sole debt on a joint property

Do unsecured lenders really go for charging orders these days for loans of £3k.  As you  say if the property is joint they cannot really do anything.  

fatbelly

It's a bit unusual but we don't know what sort of debt it is. Maybe it is a local supplier with a grudge.

A secured loan wouldn't go the ccj/co route as there is already a charge registered at the Land Registry