Charging Order Question

[drowning-mummy]

Hiya,

What is the earliest amount of time that a creditor can get a charging order? Or that you have heard of a CO being placed?
We have not paid creditors for about 4-6 weeks now. We are planning BR, which naturally will take some time. What if a charging order is placed on property and then BR is declared? can they place a CO on a home that is in negative equity?

Many thanks.

[Reviva UK]

Hi there

let me try to answer the question in bullet point form

1. Time Line for a Charging Order.
This process starts with a County Court Summons ( Blue & White court form usually from Northampton County Court.) If one arrived on Monday morning ( any you ask for time to defend) it won't go before a judge for 28 days. Then you get judgement against you but have an opportunity ( 28 days) to pay in full or make repayment arrangements.

2 months till then.
At this point he creditor could go for a payment order, charging order or ask for bailiffs.

If it is a charging order then the need to get a court date ( at least 2 weeks time) and apply for an INTERIM CHARGING ORDER. Then then need to go back to court ( couple of weeks at least ) and applu for a final charging order.


If they are really fast then 3 1/2 months is the bare minimum. In reality if you slow the process down it can take 4 - 8 months.

If you are going Br and go to court the day before the FINAL charging order then the charge doesn't get applied to the house. ( this went to the high court and I have had several clients go Br the day before the final charging order).

2. If the debt is unsecured whe you go Br it can no longer be charged against the house.

3. Creditors don'r really mind if you are in negative equity because it gives them more protection than being unsecured and in theory they could refuse permission to sell the house unless all their debt is repaid at time of sale / remortgage etc.

[Viki.W]

Hey DM, looks like you'll be ok then. Thinking of you. X

[drowning-mummy]

Thanks Paul,
So can a charging order be placed if all of my debt is unsecured? We've never secured anything against our home. We'd only have more debts if forced to sell certainly could not pay anyone back. Think I understand COs a bit better now. Sorry for being dense.

[drowning-mummy]

Thanks Viki, looks like we posted at the same time. Should be okay as no letters recieved yet and I think BR takes about 8 weeks (thats if we are granted it).

[Viki.W]

I'm sure you will be. You should go over to the sister site and read the posts on there, very informative. But don't leave us!!!![:I] X

[drowning-mummy]

Is that IVA.com?

[Viki.W]

http://www.bankruptcyhelp.org.uk/

Or you can click on "bankruptcy help" in the top left of this page. They are great on there and Melanie and Paul post on there aswell. Lots of people been through or going through BR will be able to help you. X

[Reviva UK]

If you are going to court in 8 weeks and haven't have a county court claim then there is not enough time fro a creditor to get one.

Have you fully checked out the equity in the house and what happens with the beneficial interest etc

[drowning-mummy]

Hi Paul,
Yes Melanie has explained that bit to us. I believe we are selling our share to my step-mum for £1 and will incur about £200 costs? Just the stuff like Lifa assurance being handed over that I dont understand etc, or how to work out my tax to send to the OR/IPA

[drowning-mummy]

Hi Viki, I had no idea that the site existed! Its great over there. I'll be disappearing there for the time being, and doing my posting there, but still writing my blog and checking in to see how you lovely people are. Ciao for now xxxxxxxxxxx

[jane.l]

Just a warning, make sure you tell the creditor going for the charging order when you are made bankrupt, we had a charging order granted after the bankruptcy date as the court obviously did not get informed that we were bankrupt in time

[drowning-mummy]

Thanks jane, fingers crossed we wont recieve one. Did that make the CO nul and void or was it still placed on your home?

[michael.t47]

drowning mummy, i would like to be able to contact you privately for some advice please

[jane.l]

we did eventually get the CO overturned and they removed it, it was a lot of hassle, I should not really have bothered as we were not keeping the house, but if you plan to keep your house, its important they don't slap a CO on it!