Charging Orders

[cader]

Hi. Can someone please tell me if a CCJ has to be obtained by a creditor before a Charging Order can be granted,or can they apply direct for a Charging Order without the CCJ? Thank you.

[asokn]

A CCJ is needed.

[Ganymede]

A CCJ is needed.

 

 

Correctamundo!

[cader]

Thanks guys.Much appreciated.

[cader]

Forgot to ask-if I make an offer to pay a creditor,can they apply for a CCJ anyway??

[AndyOrch]

They don't apply for a CCJ, they issue a summons for the debt outstanding, your choice to defend or accept or admit partial, unless defended successfully or a compromise is reached through mediation,

the outcome will be judgment for the Claimant, you then have a CCJ.

 

Regards

 

Andy

[asokn]

Forgot to ask-if I make an offer to pay a creditor,can they apply for a CCJ anyway??

 

Yes, basically. An offer to pay does not prevet the issuing of proceedings with a view to obtaining a CCJ.

[Gaston Grimsdyke]

There are some types of debt which do not require a CCJ before a charging order is issued, e.g. Council Tax.

[Guest]

and, there (CTax), a liability order (magistrates) would be needed first before a CO can be considered.

Edited April 24, 2012 by Ford

[cader]

Thanks everyone for your help

[cader]

Andy,you mentioned compromise through mediation.I am trying to avoid having to go to court here,so if I offer to go to mediation and abide by the decision made there,would that mean that the creditor would not take out a summons against me?

[Guest]

cader

what are the circumstances? at what stage is this at? more info needed.

[AndyOrch]

Andy,you mentioned compromise through mediation.I am trying to avoid having to go to court here,so if I offer to go to mediation and abide by the decision made there,would that mean that the creditor would not take out a summons against me?

 

You cant get into mediation until the summons is issued, you can negotiate with this creditor before litigation if so to avoid any legal action.This creditor is playing with your mind and you appear to be confused ( as much as the creditor).

 

Heres the process, you have a debt in dispute or with a problem or for what ever reason you are not maintaining payments.

Creditor issues warning letters and requests you make a proposal

You fail they issue a Default Notice allowing you 14 days to rectify any under payments and bring the account up to date.

You ignore the Default Notice the creditor then passess it to 3rd party DCA,s or straight to their legal team.

Once in legal they issue an LBA (letter before Action) allowing a further 7/14 days for you to make proposal.

You ignore LBA a Summons is issued through the Court for the debt amount in full.

 

You either admit or part admit or defend anything less than your defence being successful you will get a CCJ (County Court Judgment)

This will either be forthwith (pay all in 21 days) or in installments, you again ignore and make no payments

Then the Creditor will then execute/enforce the judgment by any way of 3 (most Common)options

Charging Order/Restriction, AoE (Attachment of Earnings) if you are employed or Bailiff (If the debt is a over £600 up to £5K).

 

So if you have not even got to litigation yet and you fear the thought of a Charging Order then I suggest you approach the creditor now and come to some arrangement.

 

Regards

 

Andy

Edited April 25, 2012 by Andyorch

[asokn]

This will either be forthwith (pay all in 21 days)

 

execute/enforce the judgment by any way of 3 options

Charging Order/Restriction, AoE (Attachment of Earnings) if you are employed or Bailiff (If the debt is a over £750).

 

Just to clarify a few inaccuracies there:

 

1) An order for payment forthwith, as the name suggests, obliges payment immediately rather than in 21 days.

 

2) There are more than 3 ways to enforce a CCJ. A third party debt order or bankruptcy can also be used (I can't remember if even that is now an exhaustive list but I can't recall any other methods).

[AndyOrch]

You couldn't remember " Receiver for an equitable execution " need to get some sleep asoky and take a break from here.

[asokn]

Pardon me?

[cader]

What's a Third Party Debt Order? And a Receiver for an equitable execution? You've all been really helpful,many thanks.

[AndyOrch]

A third party debt order This is an order that freezes money held in the defendant's bank account. The cash you are owed is then paid to you from the account. You apply through form N349 (and yes, there's another fee) and if the judge is happy, he or she will make an interim third party debt order. And to stop the defendant simply withdrawing their money from their account, he or she won't get a copy of the order until the bank has frozen their account.

 

The timing of your application is crucial. If the court order is received a couple of days before the defendant's salary goes into their account, the "freeze" won't apply to this money – only to what's there at that time.

 

The defendant could also throw a spanner in the works by applying for a "hardship payment order" on the grounds that they can't meet day-to-day living costs as a result of their cash being frozen. Just 8,000 applications were made for third party debt orders in 2008 – 17% more than in 2007.

 

Receiver for an equitable execution

If the creditor can't recover the debt using the methods above, they can apply to the court to approve a receiver - who they have selected - to conduct an equitable execution.

 

This involves the receiver collecting money which the debtor is owed, eg rent, in order to repay the creditor.

 

Regards

 

Andy

Edited April 25, 2012 by Andyorch

[cader]

Thank goodness ignorant people like me can get educated on a site like this by people like you!

[cader]

Presumably then I couldn't recoup the debt from anyone else's bank if say there was money in a wife's account? Because the debt is not in their name.

[asokn]

Oh, are you the creditor in this case?

 

A third party debt order can only be used in relation to the debtor's assets. You cannot take money from an innocent third party who happens to be married to the debtor.

[cader]

Just to clarify,no I'm not the creditor here as my earlier posts show.I was just following Andy's post which, for the purposes of illustrating his point ,took the viewpoint of the creditor.