Charging Order? The myth

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  • hullcity2305
    hullcity2305 Posts: 15 Forumite
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    Yes, paying them £36 a month since I set up the DMP with Stepchange. They were not happy and wanted the debt paid within 2 years. Wanted some silly payment of around £370 a month. Even though they knew I was on a DMP. Said if I did not agree to these terms they would look to secure the debt by obtaining a CO. Hence where I am today!
  • eggbox
    eggbox Posts: 1,774 Forumite
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    Well, at £36 you can sit back and ignore them. But be prepared for them to try and up what you are paying back by threatening an Order For Sale, its happened lots of times to people on this thread, and they never do it as they know they have no chance of winning.


    But the threat is an attempt to try and worry you into believeing they CAN sell your house so you cough up more. So don't be fooled by this tactic.
  • hullcity2305
    hullcity2305 Posts: 15 Forumite
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    If they do that. Should I get in touch with them or just leave it and let them try?
  • eggbox
    eggbox Posts: 1,774 Forumite
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    They will usually send you an I&E form which you DON'T fill in. Just politely explain to them that what you are paying is all you can afford.
  • hullcity2305
    hullcity2305 Posts: 15 Forumite
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    On the interim charge form it indicates that all my creditors and my wife (joint owner) will be informed so that any objections can be registered. I received the interim order 1 day after the date of the form but my wife has not received anything. Any idea how long it might take until she receives correspondence?
  • eggbox
    eggbox Posts: 1,774 Forumite
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    Not really, but you should understand that whilst Orders For Sale are virtually impossible to obtain by the creditor; a CO is virtually impossible to stop by the debtor.


    However, I would always advise attending the hearing to object (in your case as you are in a debt plan and the creditor is being repaid) as once in a blue moon the judge refuses the CO.
  • traceydc49
    traceydc49 Posts: 92 Forumite
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    I have spent almost a year with sleepless nights & nightmares over a co on my house, it is owned jointly but my debt, they've also put charges on it so I owe more than it was originally for, I am paying them through a DMC, reading through all this info has made me feel a lot better! Thank you
  • eggbox
    eggbox Posts: 1,774 Forumite
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    traceydc49


    Make sure you only pay the minimum you can afford to them as there is nothing else they can try to frighten you with now. They want you to think they can sell your house when the reality is they have no chance.


    And understand you are under no legal obligation to pay your creditor, if you sell your house, either.
  • Snowtime
    Snowtime Posts: 1 Newbie
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    Hi, firstly I would like to thank everyone for this fantastic thread. Having read this we managed to convince our solicitor that the restriction would fall away on sale of our house and all went through relatively smoothly :)

    However, the solicitior held on to the proceeds of my beneficial share pending negotiations on the debt registered by the charging order. He is claiming that the CO remains a valid order of the court and that this would now attach to the proceeds of the sale. He says that he will not release funds until the CO has been discharged as they are officers of the court. He says that this is confirmed by the Law society advice service and the solicitors regulation authority. Does anyone have any experience of this as we feel he should be paying the funds to us. Many thanks
  • eggbox
    eggbox Posts: 1,774 Forumite
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    edited 14 November 2014 at 10:25PM
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    I think the fact YOU have had to explain to your Solicitor that a Restriction would be overreached, upon a sale, gives clue to the ability level you are dealing with?


    The first thing to do is get your Solicitor to explain where it states he must pass on the proceeds from a sale if you, the client, give instruction not to.
    If he can't do that, then you explain you will have no alternative but to sue him for the proceeds and report him to the Solicitors Regulation Society for deliberately ignoring a clients instruction.


    You can also explain to him here under "Agreed Notices and Restrictions" http://webcache.googleusercontent.com/search?q=cache:_Qycq_6KhoMJ:www.hmrc.gov.uk/manuals/dmbmanual/dmbm667320.htm+&cd=4&hl=en&ct=clnk&gl=uk
    That even HMRC notify there is no obligation placed on a seller to pay a CO from the proceeds of a sale. You can also explain that people (see Brightonian posts) on this thread have already sold their property without payment to the creditor and no Solicitors were harmed during the process.


    I contacted both the Law Society and the SRA on this matter and they both WON'T confirm this to you as its deemed legal advice. So your Solicitor is, basically, bluffing and just trying to cover their 'arris with what they're telling you. So you need to be firm and explain what YOU want as their client.
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