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Posted: Wed Oct 29, 2008 7:24 pm
by M.N
Hello everyone.I have got a question please.Sometimes ago,I have received a letter of after determination from the County court asking me to pay a large amount of sum to my creditors.However,I have made an appeal by using form N245.I have been requested to attend court in two weeks time for a re determination.Kindly tell me if whether my creditor can apply for a charging order at this stage.Many thanks
Posted: Wed Oct 29, 2008 7:28 pm
by MelanieGiles
Your creditor can apply for a charging order so long as they have obtained a County Court Judgement against you, which by its nature implies that you have accepted that a debt is due.
Posted: Wed Oct 29, 2008 9:09 pm
by go_4_broke
Melanie is right, but I think for the order to be effected you would have had to have missed at least one instalment on whatever agreement is made under the determination (unless the rules have changed recently), so you probably don't need to worry just yet.
However if the offer of payment is unrealistically low relative to the debt the Court may request immediate payment on behalf of the creditor, making a Charging Order more likely.
Posted: Wed Oct 29, 2008 9:31 pm
by MelanieGiles
I have it in mind that there have to be three missed payments, but I could be wrong.
Posted: Thu Oct 30, 2008 8:34 pm
by David Mond
I thought as soon as any judgement has been obtained any holder of the judgement can apply for a charging order
Posted: Mon Nov 03, 2008 12:46 pm
by go_4_broke
I think where a judgement is given, default or otherwise, and no payment is offered or made, this is probably correct.
However if a determination/redetermination is made as per MN's case(which basically means instalments) then the debtor is given protection from further enforcement unless instalments are missed.
Seems sensible really. There's no point in going into an arrangement if the creditor can simply override it. It would be like a creditor taking action whilst under the terms of an IVA, which is why the proposed changes on CO's seems very unfair.
Best Regards, Simon
Posted: Mon Nov 03, 2008 12:57 pm
by David Mond
Thanks for that. This is from HM Court Services which I have just looked at:
When can I apply for a charging order?
You can apply at any time after you have obtained judgment. However, the judge who considers your application will not make an order unless the judgment debtor:
• has failed to pay the amount of the judgment when it was due; or
• has failed to pay one or more of the instalments due under the terms of the judgment.
So in the particular case you are spot on - thanks.