CCJ and IVA

[S2004]

my husband is in a DMP but Northern Rock are going for a CCJ which is a debt of £20,000.

Im in an IVA if northern rock get a charging order on our house will this affect my 4th year equitity releases clause.

[Adam Davies]

Hi
Yes it will and may work in your favour.
The loan to value of your property will be higher,meaning less can be released from it.
Regards

[MelanieGiles]

The charging order will go against your husband's share of the property only, however it may affect your ability to raise equity during the final year, as a mortgage company will take that debt into account when calculating the loan to value ratio upon which it is prepared to lend.

You should advise your IP of this, however just so they are kept in the loop - but at the end of the day this out outside your control.

[S2004]

to be honest i only think there's about £5000 equitiy in the house anyway.

so if NR get a charging order and we remortgage do they come 1st in getting paid from any equitiy

[S2004]

thanks melaine that makes things clearer for me now i was abit worried but as it's out of my control now we have done are best with NR they rejected IVA twice now they want a CCJ and won't agree to DMP anymore so not much else we can do we tried are best.

[David Mond]

If you would like to send me all of your details and financial position I could have a look at your situation and maybe persuade NR otherwise. You can email me direct.No charge by the way!