final charging order

[losingwilltolive]

Hi Again,

Hope this section is the right one to post in---I only discovered this site 3 days ago....pity i did not know of it sooner!!

Apart from the constant supposr available on here the one thing i have learned is not to hide away from debt( which i'd been doing since collapse of my business in Nov 2007)- reading this forum i now want to confront these people and ask them to firstly justify the massive amounts they have been trying to claim & also i have noticed that each time they sell the debt onto someone else they add massive charges again....

Anyway- could anyone point me in the right direction Re: Final Charging Orders:

Land of Leather , as i'd defaulted upon a buy now and pay 12 months later...they have worked out that i owe £4689...this they have a ccj for and put a final charging order on my house....

i have heard nothing from them whatsoever, i have sent letters, faxes, emails -so that i can start a repayment proposal---they have not replied once....

i only wanted to start a repaymen proposal as i also think they are adding dailiy interst on to thsi credit agreement, in which case if i ignored it until i sold house then the interest could also be massive..

please can anyone advise what i can do to get them to respond

thank you

PS/ I hoe you guys don't mind in me asking sevarl bits of advice---it's just that i have now realised that it's best to deal with these people now...Although my main aim over next 24 days is to avois eviction on a possession order-- help for this is already being kindly provided on this forum

[ukaviator]

In most cases where a Charging Order has been made final, the creditor usually issues a Land Registry interest in the property, which effectively stops any re mortgage or sale of the property without the creditor being made aware.

 

The creditor will then usually await the future disposal of the property to get the debt paid – statutory interest being charged each year. If the creditor refuses to wait for the disposal to get the debt repaid it can go back to Court to apply for possession. It is unusual but legally possible for the Court to make an order for possession and sale without firstly exhausting all other repayment possibilities with the debtor.

 

If debts are below £5,000, you could argue that an Administration Order should be made instead of a Charging Order being made absolute. Also the debt is Consumer Credit Act regulated and consideration should be given to a Time Order.

 

Is it Land Of Leather or another financial institution who loaned the money in the first place?

[losingwilltolive]

many thanks---

sofas were bought from land of leather on the ' nothing to pay for 12 months'!! -( silly me)

but the finanace was from a company called creative financial....

i hear what you say but in years could this debt double or triple....its already far higher than it should be due to all their costs & charges...

for some reason they are not responding to any of my letters

[ukaviator]

When a creditor has taken the debt to the County Court, they may be able to add extra interest once a Charging Order is made. Interest cannot be added if the debt is for an agreement regulated by the Consumer Credit Act. This includes most ordinary credit agreements or the debt is less than £5,000 in total, even if it is not covered by the Consumer Credit Act.

 

If the debt is more than £5,000 and not covered by the Consumer Credit Act, then interest is set by the court and runs at a standard rate.

 

How long ago did you have the Final Charging Order issued, did you go to the hearing?

[losingwilltolive]

Thanks to another poster i have now found my thread-- thanks

 

i did not attend court and simply just allowed it to happen!!!

 

could anyone advice- a charging order has been placed already--can it be disputed unfortunately as mentioned in a post last week-- creation finance ?( land of leather) have placed a charge of approx £4500---with interest it's probably increasing at a rapid rate as each month passess---

They have answered none of my previous calls/letters re: repayment

 

Is there anything i can do once a charge has already been put on?

thanks

[FunkyFox]

Hi, I never wish to be the bearer of bad news but I think that you will find it almost impossible to get a charging order removed once it has been made final. It seems almost impossible to get one stopped during the process, let alone after it has been made final.

 

As for the interest I would think (but I'm sure that someone will confirm) that once the order is made final the amount owed is set and will not increase futher.

 

Hope this helps.

[sequenci]

I have to agree with Funkyfox on this one. It is VERY difficult to have a charging order discharged. If you are looking to offer instalments you could submit a n244 form to the court asking to vary the terms of the judgment. you could ask the court to make it a condition of the order to stop the creditor's facility to go for an 'Order for Sale' whilst you keep up with the instalments.

 

Interest should be stopped on the order although it is worth checking. The only time where interest may still accrue is if there is an interest after judgment provision in the terms of the contract.