charging order

[jue]

Thanks monday night!

If this creditor does proceed with a charging order and then i decide to go bankrupt,then i would have no equity in the property is that correct?

So if i continued to pay this creditor after bankruptcy i would still get to keep the house?
They wouldnt be able to touch my partners share of the equity would they?

jue.x

[Storm]

It would depend if the debt was joint ?? but say its your debt and a charging order is put on the property then it would only effect your share of the equity.

Once the order is in place - agree a payment either by application to the court or in writing with the creditor and make sure you maintain these payments as you would your mortgage that way the creditor can't apply for a forced sale.

[jue]

Thank you storm

The debt is in my name only.
If possible could you tell me how long it usually takes the creditor to put a charging order on your property?

Its just that my partner is considering taking out a loan to pay for my share of the equity so i can end this nightmare and go bankrupt.
By the way,my partner is very good with money(not like me!)

jue.x

[Storm]

Depends how agressive they are but the process is -

1. Creditor needs to establish the debt - normally done via County Court Judgement. This takes aprox 35 days from the creditor starting proceedings. When you recieve the paperwork it takes 28 days for the creditor to get Summary Judgement.

2. 7 days after the CCJ is issued - the creditor is permitted to apply for an Interim Charging order. (These are granted 99% of the time when judgement has been given) - note creditors don't normally work this quickly....

3. Once the Interim order is granted a hearing is set by the court (min 28 days later) to make the charging order final.

So it will take aprox 90 days for the process if the creditor is driving it through.

Hope this helps......

[jue]

Thats great thanks.

Sorry,just one last question,would i have to attend the court at all? And how do i make an application to court?

Sorry thats two questions!

jue.x

[Storm]

You don't need to attend court if you don't want to (all hearings would be with a judge in chambers even if you did go)

You can make an application to the court on form N244 (cost £65).

You could do this when the County Court Judgement documents arrive by completing form N9 (part of the pack you will recieve) which asks for time to pay - the problem will be that some creditors are happy when you do this and don't persue the charging order but in your case you want them to go for the order.

[hara]

If the charging order is left as it is, will there be accumilated interest on it?

[jue]

Just a quick update.

My partner as now suggested that he would enquire about remortgaging but in his name only,then he would give me my share of the equity to hand over in bankruptcy.Do you think the OR would be ok about this? Its just that my partner does not like the idea of this creditor having a charge on our property!

jue.x

[Storm]

Two things will make this viable or not -

What is the property worth ?? and what is the current mortgage.

Can you partner support the income multipliers ?? ie does he earn enough to support the mortgage payment ?

[jue]

The property is worth about 95k.outstanding mortgage is 58k. yes my partner does earn enough to afford this.

[Storm]

OK - if you partner was able to remortgage at 85% (£80,000) that would release £22k with your share of the equity being £18.5k

Based on a 3.5 multiplier they would need to be earning aprox £23k

[jue]

yes he earns more than that so i cant see it being a problem.The only trouble now is will he be able to get it through in time before this creditor takes action!

jue.x

[Storm]

Get a good broker to work with you on this and you will be able to get it done in a timely manner.

[jue]

Thank you storm.Can i just say you have been brilliant answering all my questions.i dont know what i would of done without you!

Thanks again

jue.x