Creditor wants charging order

[mkb]

I have read this thread http://www.consumeractiongroup.co.uk/forum/legal-issues/203298-guide-charging-orders-orders.html but still have questions

 

I have a creditor who has a CCJ for a debt of £1800. The CCJ is correct and totally undisputed. Judge ordered monthly instalments of £12 as I am on benefits. 1st payment was orderd by 20/03/2010 so standing order set up for 4th of each month.

 

Wed. I get a Notice of Hearing to attend court miles away in 2wks for hearing to consider claimants request for variation order.

 

Today I get the claimants paperwork - they are asking for forthwith judgement and C.O. claiming that the post-judgment contractual interest is increasing the debt and the payments are not reducing it.

 

The agreement does allow for post-judgmental contractual interest at 2% per month. It was for leased equipment for a business venture and regulated under CCA 1974.

 

I have written to court and asked for hearing to be transferred to local court but wont know result of this for week or so I guess.

In the meantime though I need to put a defence together - oh joy!

 

Questions (and forgive me for being dense at times LOL):

 

a) is there case law which prevents contractual interest continuing after award of CO?

 

b) if so, surely I am better to accept the CO than to have ongoing 2% monthly interest?

 

c) if CO in place, do payments continue as well or are they ceased until such times as house is sold?

 

d) shouldn't they have asked for a list of all other creditors to inform them of their intended actions or is this only for secured creditors such as mortgage co etc?

 

Many thanks for all your help

(she says hopefully LOL )

[hatesdebt]

I think c is yes and d is no. Unsure of the others - sorry.

 

Is the house jointly owned?

[CBR600F]

d) The to hearing to finanlise a C.O. is an opportunity for your other creditors to state there objections so therefore they should be inform by the claimant after an interim charging order has been obtained and before the hearing to finalise it.

 

Speaking from my experience with a CO & HFC .The Judge was very clear in stating that it was in effect an interest free loan repayable at some future date, which I could make payments to as and when I could afford them but there was no enforceable requirement to do so.

 

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

[mkb]

I think c is yes and d is no. Unsure of the others - sorry.

 

Is the house jointly owned? YES - I know they can only apply it to my share of house

 

Thank you hatesdebt

 

d) The to hearing to finanlise a C.O. is an opportunity for your other creditors to state there objections so therefore they should be inform by the claimant after an interim charging order has been obtained and before the hearing to finalise it.

 

Speaking from my experience with a CO & HFC .The Judge was very clear in stating that it was in effect an interest free loan repayable at some future date, which I could make payments to as and when I could afford them but there was no enforceable requirement to do so.

 

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

 

Thank you CBR.

 

__________________________________________________________________________________________________________

 

Every instinct is telling me that its not actually going to hurt per se but I MUST get answers to the question of interest since this is currently allowed for in original agreement at 2% per month so compounds at a huge amount per annum.

 

Please can anyone give specific advice regarding the interest and how to get it stopped?

 

Thank you

[CBR600F]

Oh forgot to mention at CO hearing none of my other creditors showed up!

[pt2537]

 

Questions (and forgive me for being dense at times LOL):

 

a) is there case law which prevents contractual interest continuing after award of CO?

 

b) if so, surely I am better to accept the CO than to have ongoing 2% monthly interest?

 

c) if CO in place, do payments continue as well or are they ceased until such times as house is sold?

 

d) shouldn't they have asked for a list of all other creditors to inform them of their intended actions or is this only for secured creditors such as mortgage co etc?

 

 

 

Ok, will try and assist,

 

Answers

 

A) the Claimant has only the rights which the contract provided him with, if they did not have a term for Post judgment interest in the contract then no they cannot, unless the judgment allowed for the interest.

 

B) im not sure here, it would depend on their rights under the contract as to what they are entitled to

 

 

C) yes you must still pay and if you fail to pay then they can seek an order for sale of the property

[mkb]

Thanks pt - I think I'm probably getting a bit too far ahead of myself

 

For the hearing next week, I need to get judge to agree to keep the instalment order in place thus preventing the application for CO. Going forward, how do I get the interest stopped?

 

Any suggestions you have for me that will assist would be much appreciated.

 

My fear is that because the agreement allows for post-judgment interest at 2% per month, the interest will rack up to the point where a 2k debt becomes infinite

Edited May 6, 2010 by mkb

[pt2537]

Thanks pt - I think I'm probably getting a bit too far ahead of myself

 

For the hearing next week, I need to get judge to agree to keep the instalment order in place thus preventing the application for CO. Going forward, how do I get the interest stopped?

 

Any suggestions you have for me that will assist would be much appreciated.

 

My fear is that because the agreement allows for post-judgment interest at 2% per month, the interest will rack up to the point where a 2k debt becomes infinite

you cant get the interest stopped, this is the problem,

 

maybe some background on the debt would assist, to establish if there has been a breach of s90 CCA for example