www.iva.co.uk

Hi all

just a quick question.
If i had a charging order put on my jointly owned property and i decided to go bankrupt,would i be forced to sell the property?

Does anyone know what will happen if i decide to do this?

Thanks

jue.x

It will depend on the amount of equity available in the house. If there is little or none you may be able to purchase the house back from the court for a nominal fee and then pay whatever amount you have agreed to through the charging order, or nothing at all.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

So if my share of the equity was say 11K i would need someone to buy this back for me?

If possible could you explain what charging orders are please?

Thanks

Jue.x

Yes that's correct, someone could buy your share back to prevent the court selling your property. Whether this would have to be the full amount would potentially be negotiable.

A charging order is a Court appointed order securing a debt to your property. You can then either agree to pay a monthly amount, leave the charging order on the property and repay the creditor when you sell the house, or sell the house immediately paying off the creditor.


Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

Thank you very much.

Can one of the creditors go straight into putting a charging order on your property or do they have to go down different channels first? For example: issue you with a CCJ first etc

Thanks

jue.x

The creditor would have to apply for a charging order through the court and this would generally come after a ccj.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

Thanks.

You say i can agree to pay a monthly amount while the charging order stays on my property,who works out what i should pay? and if this is done does this creditor withdraw from the DMP that i am paying into?

Sorry for so many questions!

jue.x

Hi
I believe that the amount you pay is determined by the court and that you would pay the creditor outside of your debt management plan,as it would be deemed as a secured debt.However I am not sure on this point so I may be corrected.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

This can only be arranged through the creditor. If agreed the amount needs to be paid either through a dmp payment (if enough) or seperately.

Contact the creditor and see if they require a monthly amount or if they are happy to just have the charge sit on your house.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

It is better to make an Application to the court to pay an amount rather than try to negociate this with the creditor.

Firstly the court will consider and Income & Expenditure statement and set a reasonable amount.(what the court consider reasonable and what your creditor consider reasonable may be very different)

Secondly if the court makes the order providing the agreed amount is paid the creditor will not be able to take any further action whereas an agreement with the creditor direct is subject to change at any time by the creditor.

Thats interesting thank you storm!

i havent been issued yet with a charging order,its just that ive received a letter off one of my creditors saying my account is pending legal action,so im thinking they are going to do the worse to me!

jue.x

If you feel a charging order is imminent then you should pre-empt this move and seek advice on debt solution immediately so that you can stop this from happening.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

Im thinking of going bankrupt but its finding someone to buy my share of the property,i spoke to my partner last night and he said he doesnt think he would be able to get 11k(equity is 22k by the way)so now im thinking we should sell the house and rent somewhere,but god knows how long the house would take to be sold!
Im in an absolute mess,having a nervous breakdown and ive got a 3 year old to look after!

jue.x

Bankruptcy would at least take the stress of the debts away from you and if you sold the house at market value you could maybe use your partner's share of the equity as a deposit for a new property.

Have you discussed the possibility of proposing an IVA with anyone? (Apologies if you have already posted about this I find it so hard to remember what has been said on different threads sometimes).

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

Hi - I went through a charging order on my property whilst I WAS on a DMP. The order was put on 2 years ago and I still continue to pay the DMP and the original amount (so my payment never goes up)event though my other creditors get a raise.