Link Financial - threat of charging order, please help!!

[shellygum]

Have received a letter from Link this morning stating that they've investigated my assets and because I own a house, they will use it to "enforce a county court judgement by way of a final charging order". Can someone explain to me in layman's terms what this means exactly?

 

The debt is for £8.5k and if I received a CCJ form, I would not dispute the amount, I would simply offer a monthly amount. Should I write to link and do this now? Is there a standard letter for this? I'm not concerned about having a judgement against my name but I am worried about suddenly receiving something through the post telling me I have to sell my family home.

 

I have 2 small children and am in full time employment. I can just about manage to offer them £100 pcm, is this an acceptable amount?

 

Sorry if this sounds jumbled but just need some guidance asap, am worried about this getting out of hand.

 

Just another thing I've thought of, I have a 12k debt with Lloyds and they are accepting £50 pcm so wouldn't this run in my favour with the courts?

 

Thanks in advance

[asokn]

A charging order is basically an unwanted mortgage which is registered at the land registry and sits on your property. The purpose of it is to secure a CCJ so that, when the property is sold, the debt is repaid in full or in part from the proceeds of sale. Just like a mortgage the creditor is paid before any money would come to you.

 

There is a big fuss on these forums about the distinction about 'restrictions' but my personal advice is to ignore that because it has little practical relevance.

 

A charging order does not require you to sell your house. However, it does allow the creditor to apply back to the court for an order for sale of the house. Less than 1% of charging order applications result in orders for sale and the courts are extremely reluctant to make them, particularly where the debtor is paying something.

 

There can be no charging order until a CCJ is awarded. Whether you want to set up a payment arrangement with Link is a matter for you.

 

The fact that another creditor is accepting monthly payments is of little relevance.