Charging Order? The myth
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Eggbox - I have contacted the court with my issue, the amount cabot are asking me to pay is well above what the charge was original registered which is on the claim forms and the judge comments. I am about to try and scare them into taking a lower offer just to get this out of the way. Are you aware of any language I can use that might make them think twice about pushing this. So far I have tried the set aside argument and they did not budge.0
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JayN
The individual debt concerned must have obtained a Charging order for their debt before your Dad declared bankruptcy, therefore, that debt won't have been included in the bankruptcy through being a "secured" debt? And any amount ordered to be paid by the Court, due to the bankruptcy, will only have gone to the "unsecured" creditors. So the individual's debt won't have been reduced from the £350.00 repayment?
However, if you read the relevant parts of this thread you will understand the BM charge is registered against the property and the individuals charges notified by restrictions aren't. Therefore, given the right conveyancing help, your parents are able to sell the property without settling charges only notified by a restriction?
This won't wipe the individual's debt but it puts your parents in control of how it is repaid.0 -
Hi,
I have just finished paying off a final charging order lodged by Reston's solicitors on behalf of their 'client' MBNA and have received a final bill of £565 in order for them to remove the restriction. They have simply itemized some phone calls and correspondence that I have had with them since 2013. I don't recall receiving any advice that I would be charged a fee every time we had any contact. Do I have any legs to stand on? The fee includes £100 for discharge. Can anybody help with this? Thanks in advance.
Sablelady
Reston's are a particularly vile bunch of characters who will try anything to extract money from debtors. Unless you have entered any agreement for the charges they are trying it on as they can't be included in the Charging Order debt amount?
I'd, therefore, ring the Law Society to request clarification on the validity of any charges when settling a charging order.1 -
mintminty59 wrote: »Eggbox - I have contacted the court with my issue, the amount cabot are asking me to pay is well above what the charge was original registered which is on the claim forms and the judge comments. I am about to try and scare them into taking a lower offer just to get this out of the way. Are you aware of any language I can use that might make them think twice about pushing this. So far I have tried the set aside argument and they did not budge.
There isn't any language that will make them budge as they don't need to? You, also, won't "scare" them into any action and set aside won't mean anything to them unless you can actually apply for such?
Where you may, perhaps, have an angle is if the debt isn't attracting interest then Cabot may be acting fraudulently by trying to get you to repay above the CO amount? Have they explained where the extra amount has come from?0 -
JayN
The individual debt concerned must have obtained a Charging order for their debt before your Dad declared bankruptcy, therefore, that debt won't have been included in the bankruptcy through being a "secured" debt? And any amount ordered to be paid by the Court, due to the bankruptcy, will only have gone to the "unsecured" creditors. So the individual's debt won't have been reduced from the £350.00 repayment?
However, if you read the relevant parts of this thread you will understand the BM charge is registered against the property and the individuals charges notified by restrictions aren't. Therefore, given the right conveyancing help, your parents are able to sell the property without settling charges only notified by a restriction?
This won't wipe the individual's debt but it puts your parents in control of how it is repaid.
Thanks eggbox. Could the individual claim that parents property (which will need to be sold asap) was sold undervalue if i was to purchase it slightly below market price?
I am not sure if I should get a few valuations on the property done, take the average and say it is being sold for X price and offer to settle it that way?0 -
Thanks eggbox. Could the individual claim that parents property (which will need to be sold asap) was sold undervalue if i was to purchase it slightly below market price?
I am not sure if I should get a few valuations on the property done, take the average and say it is being sold for X price and offer to settle it that way?
They can claim what they like but to have anything happen they would need to take the matter to Court using a "freezing order" (which is risky for them as it is expensive and can incur high costs) if they want to prevent the sale?
A homeowner can also sell their property for whatever value they like as they can a motor car they own. "Market Value" is also hugely subjective as there are so many factors that determine a property's price?
If the property, however, is sold under what would be perceived as, "below market value", to a sibling then there may be considerations regarding inheritance and capital gains tax if the parent (from memory so check) dies within seven years? This will be because any under market value amount will be seen as being "gifted".
But the charging order granted to the person concerned was only attached to the "beneficial interest" (equity) in the property concerned. There is no guarantee the debt will be covered when the property is sold which is why a freezing order is a huge risk for the creditor?
As such; as long as the property is sold for value then the restrictions will become overreached, and therefore removed, when your details are registered on the deeds regardless of how much beneficial interest the creditor has received.
The real problem, however, will be the mortgage lender agreeing to go along with the sale?0 -
Nope no explanation, they keep repeating you need to pay X before we will remove the charging order. Am I able to have the mortgage company pay the court directly the amount to have it discharged?0
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You need to get a settlement figure with a break down of the charges. If they won't provide that you are entitled to take the matter back to Court to have them justify why the amount they are claiming is higher than the judgement figure?0
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There is a restriction (interim charging order) registered 2012. I did not realise this, as knew we had ccj but was not aware a restriction applied. This has come to light when we are transferring house over to family (son) not selling but transferring deeds I have tried resolving this only to be told by Black Horse debt been sold on I have spent the whole morning being transferred to different debt agencies. Now to be told by Cabot they cannot speak with me as claim in my husbands name.
Can transfer still take place with restriction on. Solicicitor said we need letter of consent from charge holder.
Please advise, help......0 -
As far as I can see, there is nothing to stop a transfer of the property to another person as long as the terms of the restriction have been complied with? The Restriction, however, will still remain on the deeds and will have to be dealt with by the new owner if they later sell the property.
However, I think it might help if Land Registry Rep could confirm if this is correct when he runs an eye over the situation?0
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