A guide to Charging Orders & Orders for Sale

[cymruambyth]

I have received a letter of confirmation of payment plan for a CCJ that states:

'in order to secure their position with regard to your outstanding balance, we intend to proceed with an Application for a CO. However once we have obtained this no further enforcement action will be taken against you, as long as you pay on time'

they also state that they will review the account regularly including interst rates and monthly payments.

Any comments gratefully received!

[sequenci]

I have received a letter of confirmation of payment plan for a CCJ that states:

'in order to secure their position with regard to your outstanding balance, we intend to proceed with an Application for a CO. However once we have obtained this no further enforcement action will be taken against you, as long as you pay on time'

they also state that they will review the account regularly including interst rates and monthly payments.

Any comments gratefully received!

 

Was it the court that has set the instalment arrangement?

[cymruambyth]

But, they had received confirmation of this and staed that it was sufficient.

[sequenci]

Sorry, I don't follow. Can you clarify if the court have set the instalment rate on the CCJ?

[Undercover-Elsa]

Is it not possible to apply directly to Court for a variation order to pay by instalments? That way they can't apply for a CO unless you fail to pay or they convince the judge that it's an unreasonable offer?

Also, afaik they can't review interest..Sequenci will know...

 

Elsa x

[cymruambyth]

Hi sequenci, I had a letter of confirmation of a SO for payments by installments from the creditor which was sent to the court. The court said that this was sufficient.

[sequenci]

If the instalments have been made as part of the court order you will be able to challenge their ability to secure a charging order against your property. They should only be able to do this if you have defaulted on the instalment order, my guide in the very first post of this long thread explains a bit more. You should always challenge any potential applications.

[butts]

The problem (and a weakness in the system) is if a CCJ is awarded by the Auto-Court in Northampton it will be set at some ridiculous level that you can't afford.

 

If you are unable to make the first payment and it becomes due BEFORE your Redetermination Hearing at your local CC (the transfer often takes a while) you are in

 

default and they can apply for an interim charging order before the redetermination hearing has taken place.

 

Hence you'll have what happened to me a "double whammy" when the Redetermination and CO hearings are combined with an almost guaranteed Charging Order.

 

If only I could have scraped the cash together to make the first payment on the order from Northampton I would have had time to have the redetermination hearing before they could apply for an interim CO and get an installment order like I did on another one. This is set at a level you can afford to pay not the "Mickey Mouse" figures the auto court dishes out and of course if you make the payments they will struggle to get a CO.

[tifo]

once we have obtained this no further enforcement action will be taken against you, as long as you pay on time

 

I wouldn't count on it ....

[diddydicky]

If the instalments have been made as part of the court order you will be able to challenge their ability to secure a charging order against your property. They should only be able to do this if you have defaulted on the instalment order, my guide in the very first post of this long thread explains a bit more. You should always challenge any potential applications.

 

you should see my new thread

 

Charging orders- a salutory lesson

 

- posted today

[tifo]

Hence you'll have what happened to me a "double whammy" when the Redetermination and CO hearings are combined with an almost guaranteed Charging Order.

 

This happened to me. The hearing was about how much I should pay per month and the final CO and they already had an interim charging order.

 

Their agency rep came and said he has no instructions about making a payment arrangement and is there for the CO only. Judge said OK, there you are.

 

They then threatened a Sale unless I paid (or borrowed to pay) the balance. They even put me in touch with a loan company.

 

Nearly 6 years now and they haven't done anything, though this last year they have been passing it to various DCAs for collection (they're a DCA themselves). Maybe because they know that soon it will fall off the credit records and they'll then have to show why they haven't been paid (or taken any action) in the 6 years.

 

By the way, I haven't avoided paying any instalments, after the CO they wanted much (10x) more than I could afford. And they took it to a CO even though I was paying my agreed instalments after the CCJ.

[sequenci]

you should see my new thread

 

Charging orders- a salutory lesson

 

- posted today

 

I can't find it. Can you post a link?

 

Edit, just found it.

 

I'm sorry to learn your news, that's awful! I hope you can get recourse.

[diddydicky]

against the sols i think yes

[cymruambyth]

If the instalments have been made as part of the court order you will be able to challenge their ability to secure a charging order against your property. They should only be able to do this if you have defaulted on the instalment order, my guide in the very first post of this long thread explains a bit more. You should always challenge any potential applications.

 

Installments are not part of a court order, they are the agreement that the DJ hoped we could reach (but failed to state this in his judgement). Thisagreement was dated before the date the full sum had to be paid. The court had a copy of the letter and said it would be sufficient.

Is it worth sending a copy of the letter as an attachment for redetermination or some other order or will it be too late?

I hope to challenge any and everything (not that it seems to do much good where I live!)

[Undercover-Elsa]

Hi,

Seems to me that you need to get the court to formalise the instalments agreed, otherwise these guys can just keep moving the goalposts and wave the threat of a CO at you constantly to make you up your payments.

I'm also concerned about their statement re reviewing interest. They can't do this! Have a look at the post judgement interest link in Seq's signature.

If Sequenci isn't around today to confirm the procedure, I would contact the court today, explain that the judge informally confirmed that your instalment offer was acceptable but that you are concerned that the creditors are stating it will be regularly reviewed and varied under threat of a Charging Order. Ask what you need to do in order to get the agreed instalments ordered by court. (I understand some court staff may be more helpful than others).

Re the interest - did they include this on the POC (either Statutory or Contractual) and was it allowed in the judgement?

Might be helpful to post up the POC & judgement for more help.

Sorry I can't be more help..I'm still learning

Hope you can sort it out cym,

 

Elsa x

[OldGeezer]

Hi i have a charging order against me.

 

Yesterday i received a copy of the final charging order from restons solicitors

 

They are also asking for a list of my debts and confirmation of settlement of my debt threateneing to go back to court if this information is not supplied in the next seven days.

 

Can anyone explain how they can do this

 

Thanks

OldGezzer

[sequenci]

They can make an application for an Order to sell the property.

 

Is it jointly owned?

Do you have children living there?

Did you attend the CO hearing?

[OldGeezer]

They can make an application for an Order to sell the property.

 

Is it jointly owned?

Do you have children living there?

Did you attend the CO hearing?

 

Yes its jointly owned

My son who is 28

I did attend the hearing

 

Thanks for the reply

OldGezzer

[sequenci]

Yes its jointly owned

My son who is 28

I did attend the hearing

 

Thanks for the reply

OldGezzer

 

You should make an application to vary the terms of the charging order to request that no further action can be brought in relation it providing you pay a small instalment to the creditor each month.

 

The form you need to complete is n245, the fee for the application is £35.

 

This would prevent the other party being able to successfully obtain an order for sale unless you default on the instalments.

 

Is there equity in the property?

[OldGeezer]

You should make an application to vary the terms of the charging order to request that no further action can be brought in relation it providing you pay a small instalment to the creditor each month.

 

The form you need to complete is n245, the fee for the application is £35.

 

This would prevent the other party being able to successfully obtain an order for sale unless you default on the instalments.

 

Is there equity in the property?

 

I told the judge at the hearing that i would be in a position to pay in full in June this year as a way to cancel the charging order with no luck of course.

 

He told me that was the end of the matter and that interest could not be added.

 

Yes there is equity the debt is under 2K

 

What about restons and their letter ?

 

Appreciate your help

OldGezzer

[the_shadow]

I told the judge at the hearing that i would be in a position to pay in full in June this year as a way to cancel the charging order with no luck of course.

 

He told me that was the end of the matter and that interest could not be added.

 

Yes there is equity the debt is under 2K

 

What about restons and their letter ?

 

Appreciate your help

OldGezzer

 

Less than 2k!!! I feel they are chancing there arm here... I cant see a judge granting a sale order over so little an amount... Sequenci can offer better advice than me however so await his more valued opinion and advice.

 

Edit: Thinking about it, havent new guidelines come out indicating that debts less than 25k cant be made into sale orders.. or did I just dream it up...

 

S.

[the_shadow]

Edit: Thinking about it, havent new guidelines come out indicating that debts less than 25k cant be made into sale orders.. or did I just dream it up...

 

S.

 

I can find nothing to back this up other than a MoJ consultation paper and the fact con/libdem manifesto promises... so take with a pinch of salt at present.

 

S.

[OldGeezer]

I can find nothing to back this up other than a MoJ consultation paper and the fact con/libdem manifesto promises... so take with a pinch of salt at present.

 

S.

 

Thanks dude

 

OldGezzer

[diddydicky]

orders for sale are VERY rare and the more equity there is in the property- in comparrison to the amount in the judgement- the LESS likely it is that a judge will grant an order for sale- even in these rare cases

 

i could not forsee a judge EVER granting an order for sale for a £2K debt on a house with say £20K or more equity in it!!

 

in any event- one would imagine that even with a poor credit record- if you have plenty of equity and you got stuck- your first mortage lender would assist you in clearing the debt- the more so if you are asking for a "bridging loan" for 6 months

[OldGeezer]

orders for sale are VERY rare and the more equity there is in the property- in comparrison to the amount in the judgement- the LESS likely it is that a judge will grant an order for sale- even in these rare cases

 

i could not forsee a judge EVER granting an order for sale for a £2K debt on a house with say £20K or more equity in it!!

 

in any event- one would imagine that even with a poor credit record- if you have plenty of equity and you got stuck- your first mortage lender would assist you in clearing the debt- the more so if you are asking for a "bridging loan" for 6 months

 

Thanks for the reply, equity £175K

 

What about their letter ?

 

OldGezzer