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Charging Order

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Hi all,

 

I am in a Debt Program, with agreed payments to all my creditors.

Suddenly out of the blue one of them takes out a charging order on my property (no missed payments or anything) thought this wast possible.

 

Anyone know the legals?

 

dave

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Hi,

 

I'm not too clued up on charging orders but 'lifted' this.............

 

What is a charging order?

 

You have fallen behind on some of your debts and your creditors have taken you to court to obtain a county court judgment against you, ordering you to repay your debt. If you do not, they can get a 'charging order' against you, which may force you to sell your home to repay that debt, even if it is an unsecured loan or credit card.

 

However, the order not only allows creditors to force you to sell your home, but also other assets such as funds or stocks and shares.

 

However there are various things you can do to get out of this when you turn up in court to defend yourself (you will be told of this court date well in advance).

 

These include:

 

• An instalment order

 

An instalment order is issued by the county court and allows you to repay your debt in instalments. If you are up-to-date on these instalments, a charging order can not be used against you. The Ministry of Justice had plans to allow lenders to force you to sell your home anyway, even if you were up to date, but these charging order plans have been shelved. If you were supposed to pay back the entire sum in one go and didn't, then you're in trouble.

 

However if you have an instalment order in place, you must turn up to the court, provide proof of this and also that your repayments are up to date.

 

This is based on a case called Mercantile Credit Co Ltd v Ellis in 1987, which shows on precedent that a charging order should only be made if the payments on a judgment are in arrears or you were ordered to pay the lot in one lump sum and failed to do so.

 

Even if you did not make a lump payment as promised, you may also be able to argue at the last minute that you would be more suited to an instalment order or an 'attachment of earnings' order, in which regular payments are taken straight from your monthly salary.

 

This is the most important defense – a willingness to repay the debt gradually – as even if a charging order is granted, your home may not be sold finally if you can prove you have some money that you are willing to part with.

 

There's a good thread here.............

 

http://www.consumeractiongroup.co.uk/forum/legal-issues/203298-guide-charging-orders-orders.html

 

Regards.

 

Scott.


 
 

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Hi maroon,

 

so it seems the people running my DMP screwed up by allowing the charging order to take place?

 

dave

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Hi again Maroon,

 

i should have started off by saying thanks for the very promt reply !

 

dave

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Same thing happened to me. As a DMP is an informal arrangement, your creditors can still take action against you, even if you are paying your reduced payments on time every month. It wasn't Creation Finance by any chance?


Bank of Scotland account 1 - £2,666 WON

Bank of Scotland account 2 - £2,500 on hold

GE Capital charges -£30 won (hey, every little helps!)

Barclays Partner Finance £425 charges - £225 offer accepted.

 

Finally debt free after 4.5 years, thanks to my Debt Management Plan through Payplan. There is no better feeling :D

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HEY SUZIE,

 

thanks for that no not creation, Debt Solutions

 

dave

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HEY SUZIE,

 

thanks for that no not creation, Debt Solutions

 

dave

 

Is Debt Solutions the company your DMP is with, or the company that got the charging order against you? Only asking cos Creation Finance is quite bad for going for charging orders even though you're on a DMP. My DMP is through Payplan, they don't charge any fees.


Bank of Scotland account 1 - £2,666 WON

Bank of Scotland account 2 - £2,500 on hold

GE Capital charges -£30 won (hey, every little helps!)

Barclays Partner Finance £425 charges - £225 offer accepted.

 

Finally debt free after 4.5 years, thanks to my Debt Management Plan through Payplan. There is no better feeling :D

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Unfortunately Debt Solutions may say they can provide free and impartial Debt Advice but they have landed you with a CCJ and a Charging Order........not very good of them really.....in fact, it's shocking.

 

I would advise that you contact Debt Solution and ask for all the Court Paperwork so you could investigate the possibilty of getting the CCJ and the Charging Order set aside.

 

After you've got the paperwork from Debt Solutions; leave them immediately !

 

For a company that charges 15% of your monthly DMP payments they are a disgrace !!!!

 

You can get a similar service from CCCS or Payplan for free....or you could even do it yourself.

 

That 15% fee could be better used by yourself.

 

Finally, I would advise that you have a good look around the site to see what help is available here.

  • Haha 1

 

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Any advice & opinions given by supasnooper are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability.

Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.

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Hi, I am sorry to hear of your current financial difficulties. I too am with Payplan DMP, and I am aware that the creditors can take legal action against me at anytime. However, I am assured by Payplan, that as they do with my letters from creds, that if I were to receive any legal action, they would suspend this and act on my behalf.

I think that a lot of the creditrors are happy in receiving the monthly payments, but they want some security so that they know they are defnately going to get the full debt back, I dont think it is very fair when you have come to an arrangement, that they are supposed to be happy with, howver with the dmp being informal and not legally binding, they are within their rights :(

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Hi

 

Me and my OH are going through a similar problem in that one of our creditors simply refuses to acknowledge PayPlan's DMP proposal and is seemingly going for CCJ / charging order (this bank has form for doing this kind of thing). It's my OH that's with PayPlan and they keep telling her not to worry, it's procedure etc but it's difficult when you're getting threats of court action and charging orders.

 

I'm only keeping it together because of the help on here.

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Hi

 

Me and my OH are going through a similar problem in that one of our creditors simply refuses to acknowledge PayPlan's DMP proposal and is seemingly going for CCJ / charging order (this bank has form for doing this kind of thing). It's my OH that's with PayPlan and they keep telling her not to worry, it's procedure etc but it's difficult when you're getting threats of court action and charging orders.

 

I'm only keeping it together because of the help on here.

 

 

Do start a thread on CAG when the creditor issues a summons.

 

I would advise you not to involve Payplan as they just admit the debt on your behalf and you end up with a CCJ.

I'd advise you get ahead of the game here, and get a Credit Card Agreement Request off as soon as possible.


 

Help us to keep on helping.

Please consider making a donation, however small, if you have benefited from advice on the forums.

This site is run solely on donations.

 

You can make a donation

HERE. Thank you.

 

Any advice & opinions given by supasnooper are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability.

Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.

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