Restriction K's

[Ganymede]

What were your objections?

The main options I can see for you now are:

1) Apply to Court for an instalment Order to prevent any further enforcement.

2) Come to an informal arrangement to pay an acceptable monthly amount to the Claimant.

3) Do nothing and hope the Claimant does not apply for an Order for Sale.

If they do or not will depend on the equity in your property etc.

[Clynite]

ganymede

 

Thanks for your reply. My objections were basically what everyone is advised to make ie sole debt, effect on partner, partners health, payments being made etc. But the DJ wouldn't allow me to cite them all.

[eggboxy1]

I would agree with this option but I disagree about Equity being the main deciding factor. The size of the debt and if they have any chance of getting an OFS for the type of debt incurred will dictate whether an OFS is pursued.

The current status of getting that for consumer debt is virtually zero and the reasons for this are reflected in this article written by a District Judge in June of this year;

http://www.lawgazette.co.uk/in-practice/benchmarks/proportionate-orders-sale

I would also cease any communication as talking to them only gives them the opinion they are worrying you enough to think they can manipulate you and get a larger repayment.

Get your head around the fact that creditors pursue a CO to gain priority over other creditors as it also gives them priority over bankruptcy dealings. Pursuing a CO, also, often gains them a better repayment from the debtor through a "fear" factor and people trying to avoid the CO on their property!

But the flip side for them is that the limitations of Restrictions are becoming more widely realised by debtors and, given the facts of how difficult an OFS is to pursue for a creditor, they (IMHO) lose any leverage in getting the debtor to pay up.

Interestingly, Debt Enforcement companies now seem to be highlighting the power of Restrictions (or lack of) to creditors more and more on their "is it worth it" sections advice to creditors. Below is a sample from Lovetts Solicitors site regarding Restrictions;

. Share in a house

• It is also possible to get such an order where the debtor only has a share in the property e.g. where he owns a house jointly with his wife. The charge will then be on his share of the property and not on the property itself and is much less secure. A restriction will be entered on the debtor's title to say that notice must be given to the creditor but if that is done a sale or charge of the property can be registered. It's up to the people selling, often a husband and wife, to pay you!

[Clynite]

eggboxy1

 

Thanks for your response.

[Clynite]

Hi folks,

 

Comments / opinions appreciated on current status.

 

I rang the court today, to get a status report of recent events. I wanted to know if I was to be formally notified via the court re the recent CO application. All previous court hearings have resulted in a court order indicating how the court 'found'. I was informed that the claimant would notify me re the CO application and not the court.

 

Further, I had submitted an instalment application following the CO application. The initial instalment application, made prior to the CO application was rejected by the Claimant. I asked what was the staus of the new application. I was told that they had rejected my recent application. I was asked to ring back Wednesday to get further info, as the clerk would have to discuss with her colleague. It would appear that the claimant is deliberately obstructing my attempts to repay! I dont fully understand.

 

I wish I had not bothered now as others have advised. Can the claimant keep rejecting my offer? Incidently, I have heard nothing from claimant since the CO hearing.

[eggboxy1]

Hi Clynite

 

Yes they can keep rejecting your offer and they will.

 

At this stage they want the "security" of a CO over other creditors and, as you have seen on these pages their is very little you can do to stop this process going through.

 

But take my advice and now simply ignore them as the CO is the end of the end for them in being able to coerce repayment. They aren't going to get an OFS so sit tight and stay calm.

[Gaston Grimsdyke]

Perhaps they want to issue some other enforcement e.g. attachment of earnings. You have the right to have your application heard, however, so if the court dismisses the application on paper based on the Claimant's submissions you can request it is listed for hearing.

[AKEEM0709]

hI, Can anyone please hep? I have a restriction placed on mine the debt was for £4593 and I have been paying £50 per month since Nov 2008 (£1900) at a final CO hearing.I have tried several times offering final and full settlement and we simply have not reached an agreement on the figure. I was happy to just continue paying the £50 as it was going to take over 7 years to settle the whole debt.However, today I was successfully approved for a morgage to buy my othe 50% SO and take my ex off the mortgage. I am now worried that the Restriction will be flagged in the mortgage process and therefore the mortgage offer being withdrawn.I spoke to the LR and they informed that I can apply for the Restriction to be cancelled but don't think this will be agreed by the creditor. I have therefore emailed the creditor offering to pay FF amount of £1800 (my last offer was £1500 which was rejected) of the £2693 currently owed. I am waiting to hear from them.What should I do? Is it likely the Restriction will come to the attention of the new mortgage lender?Please help as I want to settle the Restriction issue firts before I appoint a solicitor. Also the lender has offered me fee free to use their own solicitor.