charging order on the property

[gjp]

I have over £130,000 debt and have been on a debt management programme for 2 years. recently one of our creditors has decided they want to place a charging order on the property for the sake of £4,000 and have told me they will press for a sale as they are not prepared to wait longer than 5 years to have the debt paid off. I have decided to look into IVAs and was worried to find out that I will have to surrender my endownment policy as my mortgage is interest only how am I going to cover my mortgage in the future should either my husband or I die.

If I go bankrupt I will loose my job as I work for local government. Am I doing the right thing or should I just stay on the debt management plan and allow the creditor to go for the charging order

[Storm]

It is rare that a court will order a forced sale if you are upto date with the first charge lender / Mortgage

First question - does the creditor have a County Court Judgement for the £4000 debt ?

Have they started the proceedings with an interim charging order ??

[mondaynight]

Hi Storm no they havent started proceedings yet but my guess is they will any day now my main question is am I doing the right thing proceeding with an IVA or do I stay on a debt management plan where no one will get there money for up to 30 years and hope that all the other creditors do not go for charging orders?

[Storm]

If they haven't started proceedings and you are already in the process of proposing an IVA your IP can resist any attempts to seek an order.

The outline process is:

1. Creditor applies for CCJ - if you have no defence then you can complete the documentation pack with an offer to pay. This offer should be documented in the forms and should not give preference to the creditor.

The reason for doing this is that it is easier to resist a charging order if the court made a payment order and you are making the payments.

This will take upto 28 days

2. If summary judgment (CCJ) is granted to the creditor after 7 days they can apply to the court for an Interim Charging Order (this is registered at the Land Registry). This is granted 99% of the time where the creditor has judgement for the debt / can prove the debt.

3. 28+ days later a hearing is held to make the order final.

In essence - don't ignore the paperwork.....time is of the essence. If you proceed down the IVA route and your IP has called the meeting any attempts to apply for a charging order can be resisted.

[mondaynight]

Thanks for this. Going through this debt process has been long hard slog. If I choose to go down the IVA route then from looking at the postings on this site I know it isnt going to be any easier but at least it looks as though there will be some light at the end of the tunnel. I will keep yhou posted on how I get on I have a call expected from my case worker tomorrow and he is going to advise on best way forward for me. thanks again

[MelanieGiles]

Hi mondaynight

Can I just enquire why you entered into a DMP rather than an IVA in the first place? How much are you paying to your DMP company each month?


Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[mondaynight]

Hi - I was advised by the CCCS that this would be the most appropriate way forward. after 2/3 years of creditors hounding me and not discussing with cccs I sometimes found that I was given conflicting advice. following another letter from another creditor (I HAVE 19 in total) this one wanting the charging order I had 3 different opinions from 3 different advisors and I had seen IVAs on TV I turned to another company (they dont have up fromt charges) I have not comitted a yet to an IVA I am really confused and was just looking for some good advice

[MelanieGiles]

How much are you paying each month?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[mondaynight]

I forgot to say I am paying 729 per month to the CCCS

[MelanieGiles]

I cannot quite believe that anyone would recommend a DMP to you over an IVA, if you can afford payments at that level. A DMP will take forever to pay off, with no certainty and interest probably continuing to accrue, whereas an IVA will last for five years maximum.

I suggest that you contact an insolvency practitioner for further advice, and you might want to question CCCS on their reasons for suggesting a DMP over an IVA in the first place. They may have their reasons, although it is difficult to see any advantage from where I am sitting.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[mondaynight]

Thanks Melanine I will contact them. I guess I have known for sometime that either an IVA or bankruptcy should be the way I go but I cannot afford the latter as I will loose my job (I work for local government)sometimes you get stuck in s rut and cant see the woods for the trees and sometimes you rely on the advice of "proffesionals" but its when you realise the same company gives you conflicting advice you begin to worry. I will contact CCCS after I recive the call tomorow from the new company when they advise me which way I should go it has been a scary ride and one which I could have been half way through if I had recived the right advice in the first place

[MelanieGiles]

Put it behind you, choose an alternative insolvency practitioner if you feel you have received bad advice, and move forward, You have the makings of an IVA in there, but if you have no assets of material value then you may see bankruptcy as an alternative. How much equity do you have in your property?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[thebear29uk]

Hi Mondaynight

Just be careful of the companies who advertise on TV. They look very slick and don't charge up front but you are committing to an IVA for 5 years and a number of posters on here report how impossible it is to speak directly to their IP.

There are lots of good IPs out there and I would recommend Melanie personally as, through my own dealings with her, and the posts of other members who have her as their IP, I know she really looks at the "Individual" in the IVA.

Regards

Dave

[hara]

They may be able to get a charging order but as for as I know force you to make a sale.
Hara

[hara]

can not force you to make a sale
Hara.