Watch Out - Charging Order Rules May Be Changing !!!

[sequenci]

Hi Sequenci

People just don't know this is a possible sanction of defaulting on an unsecured debt. I would imagine the average man or woman on the street would be very suprised to find out that their credit card could end up being secured. Maybe the personal debt figures would not be anywhere near the levels they are if people had know about this in the first instance.

 

I agree 100%, I know that the new CCA 2006 provisions go someway to addressing this. It should be made much clearer that a CCJ could mean further enforcement. Remember that a Charging Order is a method of enforcing a judgment debt, which can only come about once a regulated agreement such as a credit card has been defaulted.

 

If the laws come in there will a queue half a mile long outside evey county court of dca's lining up to take people to court where as before they might of tried other mean first. We all no the tricks and deceipt some of the DCAs use, can you imagine with this under their belt.

 

I honestly beleive that the use of DCAs is going to start falling, I'm convinced that creditors are going to start bringing their debt collection activities back inhouse as the debts should be easier to collect due to the various changes in the laws + the economic downturn. We shall have to see what happens on that one! I agree that some unscrupulous collectors will certainly rush the courts though - not good at all.

 

 

I could go on. I just don't like the idea that getting the order will be so easy without it being considered wether its proportionate or appropriate in each case. My experience to date on these matters is that they will be dished out like confetti once it gets easier and the courts will not make apply the appropriate tests.

 

I agree to a certain extent but i also think it would be a little harsh if a creditor couldn't obtain a charging order against someone who had no other means of repaying a debt which is due. Imagine someone with little income and thousands of pounds of equity. I guess it has to work both ways.

 

I think the key problem is that the industry is full of crooked firms who plague on the average person's ignorance of the law, I hope more people find this forum so that we can give them the tools they need to regain the balance.

 

 

PS - be a devil - sign the petition!

 

We have done a great deal of campaigning/advising in the day job

Why go to the MPs when quite often they come to us

[FunkyFox]

I agree to a certain extent but i also think it would be a little harsh if a creditor couldn't obtain a charging order against someone who had no other means of repaying a debt which is due. Imagine someone with little income and thousands of pounds of equity. I guess it has to work both ways.

 

I agree 100% thats why it should proportionate and appropriate. Someone who has run into debt due to illness has little or no equity but will shortly be in a postion to resume payment and has many other creditors. Neither proportionate or reasonable, but still likely to end up with a CCJ and a charging order.

[sequenci]

I agree 100% thats why it should proportionate and appropriate. Someone who has run into debt due to illness has little or no equity but will shortly be in a postion to resume payment and has many other creditors. Neither proportionate or reasonable, but still likely to end up with a CCJ and a charging order.

 

I think the Government should employ you and I to help them re-write the act!

[blind-as-a-bat]

There is also the issue that with a charging order they can also commence charging intrest again, where they couldnt before, if i understood that bit correctly earlier.

 

How is this aplied regarding what they claim against a property, does it become part of the amount in the charging order, if so just how fast would the debt grow and therefore "increase " there share of the equity if you where only able to make a small payment.

 

If you see what im getting at

[FunkyFox]

and dont forget that in theory they can still enforce the debt by other means once the charging order has been granted.

 

For example an attachment of earnings would then reduce the amount enforced against the house through the charging order.

[FunkyFox]

I think the Government should employ you and I to help them re-write the act!

 

Bring it on!

[Misterzeus]

Excellent letter FunkyFox, letter printed and ready to be posted off to our MP.

 

Mrs Z

[angel_1]

FF

 

have cut and pasted bits from your letter and already forwarded by email to my MP but still intend to go and see him when he is at the town hall

 

at least we have started something

 

ciao for now laters maz

[hawk1979]

Hi everyone,

 

I have just finished sending emails in relation to the change in the charging order rules. The people i have contacted are as follows..

 

Assembly Members

 

Nicky Gavron, Murad Qureshi, Darren Johnson, Caroline Pidgeon,

Richard Barnbrook, Mike Tuffrey, Gareth Bacon, Dee Doocey, Victoria

Borwick, Jenny Jones and Andrew Boff,

 

Councillors

 

Maurice Groves, Barbara Mansfield and Ronald Wilson,

 

Local MP

 

Siobhain McDonagh

 

 

Lord Malloch-Brown

House of Lords

London

SW1A 0PW

[Pathway]

Hello

 

Just heard Gordon Brown say " we are the party protecting homeowners rights in this country " !!!!!!!!!

 

Is there a Minister in charge of Consumer Protection" - ?? Anyone know - tried to check on the Treasury website but all v confusing.

 

If so we should all be contacting that person as well.

 

I know Citizens Advice etc have been campaigning:)

Edited September 24, 2008 by Pathway

[sequenci]

George Brown?

 

[UnmoderatetheNet]

By all means keep signing the petition, but I think we can all agree this is as good as law and expect to see charging order on every other post. As well as stories of woe from evicted families.

So if you want to challenge your bank with CCA and then stop payments it would seem the best way to keep your home is transfer your asset to a trusted family member other than your partner/wife.

Does anyone know the approx cost and process of selling your house to your mum for say a pound?

[angel_1]

Well if they do pass it on, then they could gamble on the election victory

 

so i dont know, the voice needs to be heard now in time

 

for enough pressure to mount.

 

can i sell to my daughter for a 1.00? - guys its at 171 at the petition - yahhhhhh

Edited September 23, 2008 by maz1964

[PSB123]

By all means keep signing the petition, but I think we can all agree this is as good as law and expect to see charging order on every other post. As well as stories of woe from evicted families.

 

So if you want to challenge your bank with CCA and then stop payments it would seem the best way to keep your home is transfer your asset to a trusted family member other than your partner/wife.

 

Does anyone know the approx cost and process of selling your house to your mum for say a pound?

Is this possible? The reason I ask is because while I was at the High Court last week I was handed guidance notes on bankruptcy and while reading it I came across something about cars/assets you have sold on in the last 12 months. They would want to know who you sold to and the whereabouts of cars etc.

[FunkyFox]

This is actually a very interesting point. Could I pass the beneficial interest in my home to another member of my family to avoid a charging order?

 

Prize to the first person with an answer!

[blind-as-a-bat]

In bankruptcy no it wouldnt work as the OR would have the power to reverse the transaction, but i dont know if it will against a chargeing order

[fiftypence]

 

So if you want to challenge your bank with CCA and then stop payments it would seem the best way to keep your home is transfer your asset to a trusted family member other than your partner/wife.

 

Does anyone know the approx cost and process of selling your house to your mum for say a pound?

 

Be careful here, there could be untold problems - firstly they are likely to unwind the transaction as it is with an associated person. Also what if your mum is elderly and loses mental capacity while she owns it? There will be problems selling it and it may have an impact on means tested care benefits if she needs to go into a home. Passing to another relative is also risky if they go bankrupt themsleves or through a divorce. The safest way to protect it may be putting into a trust but that it going to be very expensive and will probably outweigh the potential debt being chased.

[FunkyFox]

can a minor own a house?

 

What if I pay the mortgage but its in someone elses name?

 

As far as I am aware a charging order is a single act of enforcement (stands alone) where as bancruptcy is eveything you have and owe.

 

As pointed out above there are obvious downsides but could it prevent them getting their grubby hands on a slice of your home.?

 

Of course the best thing to do (apart from not getting in debt in the first place) is to avoid it ever getting to court. Defend Defend Defend!

[fiftypence]

Minors can't own property.

[FunkyFox]

Minors can't own property.

 

Appologies for being curious but can I ask what says that that is the case. I always like to see it written down in black and white.

 

Thanks, FF

[fiftypence]

Don't know the act of the top of my head but to own property you need to exchange contracts or at least sign a contract of some sort and to sign a contract you have to have capacity to understand the complexity and nature of the transaction and any consequences of it and it is held that minors lack this capacity.

[citizenB]

Don't know the act of the top of my head but to own property you need to exchange contracts or at least sign a contract of some sort and to sign a contract you have to have capacity to understand the complexity and nature of the transaction and any consequences of it and it is held that minors lack this capacity.

 

How about in the event of it being willed to them perhaps?... This would not require them to sign anything.

[fiftypence]

How about in the event of it being willed to them perhaps?... This would not require them to sign anything.

 

Most people would tend to leave property to their children via a trust which only allows them to inherit at 18 or older (which is sensible) but at the point is can be transferred to the child there will still be legal documents to sign so capacity would be required and not available of they are still a minor.

 

Also for the property to pass under a Will you have to die which has to be the ultimate sacrifice to avoid a debt

[Rosie_123]

Signed

 

But, sorry to be stupid. As a home owner, I have never totally understood what a charging order is:( Does it mean that the debt to your creditor has to be paid out of the proceeds of any sale when you decide to sell, and just sits there for years? Or can they force you to sell straightaway to pay them? And what happens if you have more than one debt to more than one creditor? Can there be more than one charging order on the same property? And then what happens? And if you are working and can afford reduced regular payments to your creditors (say through PayPlan or somewhere), will they still put an order on your home instead of accepting these payments? Sorry to be stupid. Thanks in advance.

[propjoe]

what happens if the charge order is your debt but your property is joint owned

is it like br where only your share of the equity would go to creditors in the event of sale ?

 

btw petition signed