We owe a considerable sum of money at the moment and we have been to the CCCS and have a payment plan and so are making small payments to each creditor. Our problem is that we owe the Halifax the bulk of it. I have a credit card and my partner has a credit card and a loan with them. Paying off the amount set down by the CCCS it would take years to pay the debt back. we are hopeful that our finances will improve in time so that we can begin to pay a more substantial amount.

However, the counsellor at the CCCS said that it may happen that the Halifax wont accept the payments long term (they have agreed them for 6 months) and so may choose to put a charge on our house.

Can anyone tell me what effect having a charge on the house will have? One person I spoke to said we would be better selling up than letting that happen but I would welcome a more experienced opinion.

Thank you.

Hi

To get a charge The Halifax will need to be granted a CCJ in the frst instance.

I am speaking from experience here as I have a debt through MBNA that was sold to 1st Credit.

1st Credit applied for a ccj and I was advised by the CCCS to admit the full amount of the debt.

Whatever you do, dont admit the full amount if part of the debt is made up of penalty charges.

If you are issued with papers then tick the disputed amount box.

Make sure you ask for the CCJ hearing to be heard at your local court so you can defend yourself.

Send off the SAR letter and £10 fee ASAP to the Halifax so you know exactly where you stand with penalty charges and you you can get this debt in dispute, which halts all further action.

I am currently in the situation where 1st Credit are applying for a final charging order on my home,and I have had to apply for a set aside of the original CCJ order to get a chance of fighting against the final charging Order.

If the Halifax did get a final charging order,this doesnt necesarily mean they can force you to sell.

They will get a caution against your property but there are situations where the order for sale isnt granted,eg if you have kids,the house is jointly owned.

I wouldnt consider giving up my home for a minute and I would fight to the end-but thats just me ,I like a good scrap lol !!

If you need anymore info,i'm sure someone will be along soon,maybe Sequenci,or pm me if you want,i'm no expert but I would be happy to help if I could.

Good luck

Hope xx

Thank you Hope. At the moment we dont know that they will try to put a charge on the house but I didnt know what the implications were. As someone explained it to me it just meant that when you sell they will get repaid, as in like a secured loan. Are you saying they can force the sale? The house is jointly owned but there are no dependant children now. I am waiting for statements from the Halifax so I can reclaim my bank charges but I havnt done anything about the credit card charges yet. obviously

Hi,

I am not sure but I think that the loan would have needed to be taken out originally on a secured basis, they have no right to go for an attachment to your house if you are paying them any amount whatsoever that they have agreed to accept. If it went to court, the court would decide whether, or not, you were paying enough. If you were paying them nothing, they could perhaps get an attachment order, in short it is my personal opinion that they would not be allowed to do this, but please check this with a solicitor.

We owe a considerable sum of money at the moment and we have been to the CCCS and have a payment plan and so are making small payments to each creditor. Our problem is that we owe the Halifax the bulk of it. I have a credit card and my partner has a credit card and a loan with them. Paying off the amount set down by the CCCS it would take years to pay the debt back. we are hopeful that our finances will improve in time so that we can begin to pay a more substantial amount.

 

They can only collect what you can afford to pay. If it was to go to court, no judge would say anything different. There is a big difference between "can't pay" and "won't pay".

However, the counsellor at the CCCS said that it may happen that the Halifax wont accept the payments long term (they have agreed them for 6 months) and so may choose to put a charge on our house.

 

They may choose ? What kind of advice is that ? If you have been making regular payments, however small... it is highly unlikely that a judge would order a charge to be put on your house. As advised, you would need a CCJ to be lodged against you first and there is plenty that you can do to avoid that scenario. Since Halifax have not even suggested they are going to do this, it seems irresponsible of CCCS to plant that seed in your head.

 

Can anyone tell me what effect having a charge on the house will have? One person I spoke to said we would be better selling up than letting that happen but I would welcome a more experienced opinion.

 

Absolute rubbish ! They are assuming that everyone rolls over, are they ? I recently had a creditor threaten me with a property charge.... I had been paying regular amounts for years. When challenged to produce certain documantation however, they failed.... and now they cannot pursue me for payment at all.

Thank you.

i am not in this predicament but like to avoid it if possible, i have been told that charging orders are placed in first come first served basis, can anyone verify this, for example if i owed my daughter £50000 and she placed a Charging order against me then she would be first to be dealt with in the event of my death.?

hi,

They can only apply for a charging order on your property after they have obtained a CCJ, & the judge will only grant the charging order if you do not comply with the courts judgement, & then only in extreme cases will they force a sale.

I know this from personal experience, the judge said at my charging order that in the current financial climate, if every CO became an order to sell, they would be putting 1000's of people onto the streets.He told the banks solicitor that he would grant the CO, but on the condition that they could not apply for an order to sell.

debs

hi,

They can only apply for a charging order on your property after they have obtained a CCJ, & the judge will only grant the charging order if you do not comply with the courts judgement, & then only in extreme cases will they force a sale.

MANY judges are granting a 'forthwith' judgment to allow a creditor to go for a Charging Order, this is especially used if people make a small monthly offer on their judgment debt.

hi debs thanks for that but i was wandering if anybody could shed light on.

" i have been told that charging orders are placed in first come first served basis, can anyone verify this, for example if i owed my daughter £50000 and she placed a Charging order against me then she would be first to be dealt with in the event of my death.? or have i been given duff advice?

Charges are placed in time order.

This means that the mortgage provider would have the 1st charge, they have first dibs on the property. Then whoever has the next charge would be looked at next and then so on and so forth.

i am not in this predicament but like to avoid it if possible, i have been told that charging orders are placed in first come first served basis, can anyone verify this, for example if i owed my daughter £50000 and she placed a Charging order against me then she would be first to be dealt with in the event of my death.?

This is a good question which I have been pondering over for a while but cannot find any information on the web.

I know that in the event of your death the first charge (your mortgage) is paid off, which is obvious but my situation is that a relation of mine has been paying the vast majority of my mortgage off since I fell on hard times 2 years ago. I went from a decent income to earning just half of what I used to earn.

Despite trying to earn more money I have been struggling to make ends meet and instead of losing my home I have been fortunate enough to receive help from a kind relative.

There is no legal arrangement or anything like that, just a written agreement between the two of us (witnessed by a third party) that any sums of money paid towards the mortgage would be paid back (with 5% interest) in the event of my death or on the sale of the house.

The only worry I now have is if any of my creditors manage to get a charging order due to the new rules coming into force, this will leave the person who has helped me at the bottom of the pile.

Would it therefore be possible for said relative to get a voluntary charge off myself on the property?

Any advice or suggestions as always greatly appreciated.

Regards

Santos

Ps sorry for butting in.

I will also start my own thread on this issue.

hi again many thanks for that debs,

thought this guy who suggested it was giving me inseure advice,but obviously ok, have had some rough dealings with him in the past.youre confirmation has put my mind at ease, take care once again thanks

hi santos good question from what my 'guy ' has said and i'll know more tomorow is that yes your partner can take a charge against you thus rendering him first in line should any other creditor chase after you,you have to do it legally though, not too sure about all the pro's and cons' but i am certainly going to look into it..keep posting

One option is to seek legal advise on your relative taking out a caveat on your property, as opposed to a property charge. I believe this is a much simpler procedure.... and probably cheaper to arrange.

thanks for that could you give me anymore info a.s.a.p

it's whats a caveat?

any advice is greatrly apppreciated: cheers

thanks for that could you give me anymore info a.s.a.p

it's whats a caveat?

any advice is greatrly apppreciated: cheers

...or you could just update your will.

hi i'm not sure but i think its more than just updating my will??

i have a charge against a property can anyone tell me whats the less cost way for me to cash it?

Did anyone respond to scullions?

I too have a charge on my house and the interest rate of 8% means I have to pay it off quickly so what is the best way to do that re-mortgage, a secured loan, attempt to sell home???

Hi,

Every case is different.

It all depends how much you owe and how much you are paying off.

Also, is their enough equity in the property. Get a realistic valuation of your property and how long it will take to sell.

All these factors are vital.

For instance, if their is no equity and your payments are minimal........you are in a stronger position to negotiate a full and final settlement with the creditor, they may accept a reduced settlement rather than sit and wait.

You say they are adding Post judgment interest. Did the T&C's of your original agreement for the debt contain a PJI clause ?

Debs

There is more than enough equity on the house in fact six times what I need to borrow, but I cannot get a mortgage as the earnings we have at present are not enough for the amount we wish to borrow. The amount we offered to pay was based on only the debtors small pension of £60 a year the form did not ask for any other earnings and so the offer of £60 was not accepted and the court awarded the full amount plus costs and interest be paid. The next step will I suppose be being made to sell the property to pay the debt unless I can get an unsecured loan as the secured loan I asked about was not allowed presumably because of the low income and the CCJ on the house.

I am having the property valued tomorrow, spring is allegedly here but I see many houses about me which have been up for sale for years'. I doubt they will sit and wait even though they are earning £76 plus interest per week there are I suppose equity release schemes but these appear to be an even worse course of action though may be the only option I have.

When you refer to the debtor as only earning £60 per year from a pension, is the property joint owned ?

Did you attend the charging order ?

The CCJ/Charging order is only for the equity portion of the debtor and I'm pretty sure they can't force a sale. It simply sits as a restriction on the land registry, so when it is sold, they get there money, I have seen cases were the restriction does not necessarily guarantee payment.

I strongly suggest you start a new thread and give us a bit more info. Help will come once we have all the facts.

Debbie

Been reading thread (interest on post judgement) in legal section t/day regarding interest on a C/O did not think they could apply interest to a C/O if was unsecured debt regulated by the CCA 1974 or is yours wildm regarding contractual interest?