www.iva.co.uk

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

[:0]

Hi
Mmmmmmmmm that is a bit concerning
Should ALL borrowing carry the warning that you may lose your house if you do not keep up with the repayments ?
So when the sales girl at Debenhams offers you a 10% discount today if you open a store card are they going to add that your house is at risk if you do not keep up the repayments ??

you see the Banks are more ruthless,as Armageddon in debts takes its toll...in question time they are on the case now....in theory one is giving bits of your house away in taking credit if one defaults.....not good. I have lost faith in credit.....a nail in ones potential coffin

I can only add to this that the most aggressive creditor re charging orders currently is Nat West.

Regards.

Interesting point Andy

I have only managed it once ( and I suspect the judge didn't like to solicitor or bank ) But at the time of a final charging order the judge gave me an additional 90 days so that I could contest with the bank re the fact that the wealth warning was not clearly advertised on the credit card agreement.

"your home is at risk if you buy anything at all on credit"!

Scary stuff. I was terrified enough at the prospect of buying a home again..even more so now.

full artical here http://www.guardian.co.uk/money/2008/se ... reditcards interesting stuff

Reviva UK wrote:

Interesting point Andy

I have only managed it once ( and I suspect the judge didn't like to solicitor or bank ) But at the time of a final charging order the judge gave me an additional 90 days so that I could contest with the bank re the fact that the wealth warning was not clearly advertised on the credit card agreement.

"your home is at risk if you buy anything at all on credit"!

Hi

Surely if a law like this was too be put into play it would more of the debtors as seeing bankrupcy as a better way out more so in cases where negative equity is involved.

What sort of help are they suppossed to be bringing to debtors on this law if any.

Thanks