Advice re Interim Charging Order Please

[reduk054]

Hi really not sure where to post but need quick advice if any one can help?

Banks solicitors have written to me advising me of their application for an Interim Charging order on our house.

Hubby is at court end of next month for a hearing regarding a personal guarantee that the bank are sucessfully claiming. We/he cannot pay the amount that they are suing us for in one go.

The banks solicitors have asked me if I have any objections to the Final Order being made at that hearing.

This is our family home, hubby is being sued for a massive amount, we have little to no equity and I know nothing about such matters.

Please can someone advise me?! What does this all mean and what do I need to do?

Scared, we have a young family and do not want the house to be taken away.

[reduk054]

Well I have been onto the HMCS website and read up a little, however the way its written is if you are applying for such and order and not if you are the recipient! So if anyone can shed any further light - great!

[reduk054]

Found this:
If you have borrowed money and the money is not secured and you have not kept to the repayment arrangement, a lender can request the court to place a charging order on your property so that when the property is sold you will have to pay that debt off first before any of the proceeds are given to you.
In basic terms, the unsecured debt becomes secured on your property.
You are not under any obligation to sell your property once the final charging order is in place, however, there are some extreme circumstances where a lender can apply to a court for force of sale. This is, however, rare and the court would have to agree to the application before such an order would be served.
So am feeling a little better, however it is not my debt as such (just in my hubbys name) and then it is my house too.

[rory32]

Is the house in both your names or just yours?

[reduk054]

Have found some useful info on National Debt line too, but it is still daunting!
National Debtline England & Wales | Debt Advice | Factsheet 15 Charging Orders In The County Court

[reduk054]

Rory 32 - both names.

[bach]

Hi First of all, Google Intrerim Charging orders, County court proceedings: Interim charging orders read the one on there from the Courts, Do this a s ap. it will help, Do not agree before you have read and understand what this is about.

Iv just recently managed to get mine set aside. If you have young children you can pleaed alsorts, like there schooling how it could effect them it would leave you all homeless which is not good for the Children Just read and read on Google, Is this a secured second loan you have? and are you keeping up with the Mortgage Payments ?PLease dont be scared were all here to help you. I managed it with the help of this site.
Lynn

[reduk054]

Hi Lynn thank you, I was just in a queue for National Debt Line, which I had found on my Google search.

My concern really is that my share of the house if you like is being drawn in to a personal gurantee of my hubbys. Dont get me wrong we are secure in marriage and I am sorting out these matters as best as I can, but feel that the solicitors are forcing my hand.

[DNA]

Anyone applying for a Charging Order over a property should have carried out searches at HM Land Registry to ascertain the identity of the proprietors and serve notice of proceedings, the proceedings themselves and any subsequent orders/applications/etc on all proprietors - if the property is held in your husband's sole name, you will not have had to be notified. The Bank will have asked for your consent to the Final Charging Order being made because of your matrimonial interest (I think) and because (I assume) you are over the age of 18. All it means is that when your house is sold, the Bank would be paid from any proceeds of sale after the first charge (assuming it is your mortgage company) is paid. Anything left after everyone who needs to be paid is paid off will come to you - it doesn't matter at this stage if there is little or no equity. I think I am right in saying this but I am not legally qualified and you should seek independent legal advice.

[reduk054]

Hi Lynn thank you, I was just in a queue for National Debt Line, which I had found on my Google search.

My concern really is that my share of the house if you like is being drawn in to a personal gurantee of my hubbys. Dont get me wrong we are secure in marriage and I am sorting out these matters as best as I can, but feel that the solicitors are forcing my hand.

[reduk054]

DNA thank you for the links and the info.
Presumably the solicitors therefore have to notify me, as a joint owner, and this is procedure.
I am starting to understand charging orders more and more now (in the space of half an hour!!) and will seek advice - if I can today!!

[reduk054]

bach / Lynn - Is this a secured second loan you have? This is a non secured personal guarantee that the bank are chasing
and are you keeping up with the Mortgage Payments - yes!!
And how did you get yours set aside? I drafted a letter to the court in response to the judgement with my personal info regarding the children. I had been to see a solicitor (cant afford to go again though at £250 per hour!) and they had recommended mentioning family home and ages of childred. TY for your help, really appreciate it!!

[reduk054]

This is relevant!!
From national debt line: You should point out any particular hardship that your family would suffer if a charging order was to lead to the sale of your home. This is particularly important if the debt is in your name but you own your home jointly so it is not even your partner's debt.
also interesting about if there are children at home, ask the court to put a condition that the house cannot be sold by the creditor until the children have grown up;
I am feeling better already! I know that the internet is a great source of valuable info however by coming to CAG and getting support - that is the icing on the cake!
On telephone now to NDL, and will keep you posted!
Thank you everyone Red

[rory32]

Apologies if you've already found this out, but you may want to read this Charging orders in the County Court is a

[bach]

Hi Do a CCA letter from the library, send it of to day asking for the aggrement enclose £1 00 PO and get it signed for.They could not produce mine, I got to the same stage as you with the same curcumstances. But because the account was put in to disput they could'nt go any further. (They need to produce this in Court)Yes may be they will in the future but it gives you more time to deal with it. Then I wrote to the Solicitors explaining that the account was in dispute just keep it very simple thats all you need to say a present.
I have a thread some where PriortyOne is very good with this sort of thing.

Lynn

[reduk054]

Hi again Bach, thank you for your post, a CCA will not help in this case as hubby had to admit to the court that he does owe the money as he did sign the personal guarantee at the solicitors. Its already accumulated over £7k in charges and interest, on top of what he had signed for.
I guess that my best hope is to ask the court to put a condition that the house cannot be sold by the creditor until the children have grown up. I know from what i have read that the claimant is unlikely to force a sale of the charged property.
It is sad but true really, hubby owes the money, we cant afford to repay nearly 70k in one go, I dont want to sell my home, bank/court have thrown out our repayment offer

[rory32]

From the link I posted above (please read it with regards to charges/interest etc as well)
If you own your home in joint names but the debt is in your name only the creditor cannot apply for an order for sale. Very rarely the creditor may use other procedures to try to force a sale. You can still make an offer of payment at the this stage and ask the court not to order a sale as long as you keep up with the payments. You can ask the court to adjourn the order for sale proceedings or suspend the order.