Clarification

[Soulgrowth]

I wonder whether one of the experts might be able clarify something for me. You may remember I mentioned a few weeks ago about a Unilateral Notice being placed on my property by a creditor falling emerging post IVA.

I have now successfully re-mortgaged and the funds are sitting with my solicitor to offer a F&F ... and have accpeted that I will have to pay the amount of £12,000 fully in respect of the cahrage on my property ... otherwise the rest of the funds cannot be released. The court hearing for the charge is scheduled for 26th Sept, the charge will be paid in full by 17th at the latest.

This evening however I have noticed that the court hearing notification states;

"and the court orders that ... the debtor stands charged with payment of £12,327.69 together with any further interest becoming due and the costs of the application."

Does this mean that payment of the charge in the next few days will not actually clear the charge, that amounts (this would be in relation to ongoing lease payment liabilities) will automatically continue to be added to the charge? Or will having paid the charge the creditor have to re-apply for another charge?

Also, is a charge like a secured loan i.e that even in the event of bankruptcy I will still have to pay for the accumulating charges? i.e can bankruptcy override a charge on a property.

I am bit confused[V]

[MelanieGiles]

As this debt is now secured, interest will continue to accrue on a daily basis until it is paid off in full. Whether you are responsible for any ongoing liability under the lease, is a matter to determine with the landlord, as the liability can continue following the crystallisation of an arrears sum by way of charging order.

Bankruptcy will bring an end to the lease, as your Trustee in likely to disclaim it. You may need to take specilist legal advice on this area - and from memory aren't you using a new good IP who ought to be advising you on this matter.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[mikebdomain]

Soulgrowth

I am sorry to say that it seems as though the £12,000 will not be enough to cover the charge and the possible accumulated interest. You have the obvious 327.69 as mentioned in the charge + any interest that they are entitled to charge on the outstanding amount from the date of the charge being applied (there are limits to the interest that can be charged) + the cost of the administrating the charge application and removal.

It is however, worth offering/negotiating the £12,000 as a full and final settlement for the charge, I have known such offerings to be accepted before.

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[Soulgrowth]

As I feared ... thanks folks.

I am a little "at sea" at the moment ... McCambridge Duffy don't seem to want to let me go even though I have now missed four IVA payments under their direction and written to ask that they terminate my agreement with them ... as they advised. Until they let me go my new IP, rightly so will not proceed due to a conflict of professional interests!

Debbie

[MelanieGiles]

But your new IP is not going to be acting for you in a formal capacity - so he should crack on with whatever it is he is going to do for you! McCambridge Duffy will not mind or complain I am sure!

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp