I am currently on a dmp and all have played ball except rbs who is currently taking us to court to try and overturn a installment order into a fourthwith allowing them to put a charge on which I am informed by CCCS that they will get it. All my other creditors have frozen interest and accepting payment. I am hoping to try for an Iva next year when I find out the security of my job as I am in the building trade. So for those people that an iva is not currently suitable it may be worth trying a dmp in the interim as creditors do seem a bit more amenable to them and they get far more back than in bankrupcy.
The DMP gives you no protection against ongoing legal action from creditors, as opposed to an IVA which would prevent this. What effect will having a charging order over your property have on the overall scheme of things?
thanks for your quck reply as we are already in negative equity it would make remortgaging etc a lot more difficult. we do want to do an Iva but I can't see the sense in setting one up while I cannot guarantee my income although I suppose I am not alone.
I suppose one benefit of the charging order is if we have to go bankrupt this will keep our house in negative equity therefore hopefully allowing us too keep our house.
Very sensible not to be entering into a long-term commitment when your income is uncertain, and as you rightly point out the charging order will have little effect if you already have negative equity.
Thanks again for your quick response. If they do get the charging order if the judge decides to overrulr the installments order that has been maintained is there much chance of a judge ordering a forced sale when the house as equity or is this very rare of which I am lead to believe.
No - I cannot see that at all. It would serve no purpose whatsoever as far as this creditor is concerned, and judges are not in the habit of ordering sales of properties unless there are very good grounds.
Hi
This won't happen.
As long as you show your income and expenditure as it is and the payments offered in your DMP the judge will almost certainly agree to the payment made under the DMP.RBS will probably be happy with this, they just want to secure their debt.
You have been very sensible regarding the IVA.
Regards
I would go to Court and ask the Judge why should RBS be put in a preferred position compared to your other creditors? You are making regular payments and the order is only discretionery. Don't let RBS walk over you even though you are in negative equity.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
