on property
"An new law making it quicker for banks, credit card companies and other lenders to take action against struggling debtors could lead to thousands more people losing their homes, say debt advisers. The rules will make it easier for lenders to use charging orders to convert unsecured borrowing, such as car loans or credit card debts, into loans 'secured' against the home of someone who owes them money. Once a charging order has been used to convert an unsecured loan into a secured loan, the lender can then force the homeowner to sell their home to pay back the debt.
At the moment, creditors can apply for a charging order only where a debtor has incurred a county court judgment and has fallen behind with the repayment instalments agreed when the judgment was made. But under the new rules, lenders will be able to apply for a charging order simply because a county court judgment has been issued, irrespective of whether or not a debtor is sticking to an agreed repayment schedule. If the debtor then falls into arrears with repayments, the creditor can immediately use the charging order to ask the court to force a sale of the debtor's home.
The rule change is contained in the Tribunals, Courts and Enforcement Act 2007, which has passed into law but has yet to be brought into effect. The Ministry of Justice says a timetable for the introduction of secondary legislation giving the act effect will be announced 'in due course'. The Lord Chancellor will set a minimum threshold of debt - expected to be £1,000 - below which a charging order or order for sale may not be issued. This should protect homeowners struggling with small amounts of debt from losing their properties. "
worrying times if your not in an iva and have equity in your property
and struggling with debt.
it would probably affect people on dmp's as well if a creditor chose do push for a charge
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