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Hi

We have the money together for the bankruptcy and have just about completed the forms. I made the appointment at Court for the 12th May, which was the soonest they could do.

However, I received a call from Northern Rock today to advise that they intending to place a charge on the property. What happens now the house is already in negative equity but they said that they don't care and that they will take the risk. Can I do anything to stop this or would it take longer to do this than the 12th????

Trying to stay calm but this is just another hurdle.

Dee

I think they mean they want to apply for a charging order against your property because they have a CCJ against you? They can apply for a charging order but they have to give you 21 days notice of the hearing. It's unlikely they'll get a charge before 12 May, let alone a hearing date! If they do, turn up to the hearing and explain to the Court that you are insolvent and by placing a charge on your property they would be preferring NR over your other creditors by securing their debt! I'm no expert but I am sure one of the experts will confirm.

Thanks Suzanne. They don't have a CCJ at the moment but I assume that this is all part of the same process. If what you say is correct then I should be ok. I think they may not be taking me seriously because first we were looking at an IVA now bankruptcy I get the feeling they think I'm using delay tactics so I can't blame them really.

Dee

They would have to go through the process of issuing proceedings, getting judgment and then applying for the charge. They've not got time to do this before 12/05 and I think they'd be foolish to incur legal costs! Good luck, let us know how you get on with your bankruptcy.

As you say this makes no difference to you if the house is currently in negative equity, so I can see no point in you defending the application at all.

Does this mean that if we sell the house in 10 years time though we would have to pay them any profit up to the balance of the debt. I know that we should be thinking about paying back anything we can but the whole point of going bankrupt is to draw a line under our problems and trying to start again. I just feel that still having this hanging over our heads defeats the object.

I may be completly missing the point but this has really thrown me and I don't think I really understand. Does it mean we cant include them in the bankruptcy?

Dee

Sorry Dee - I assumed that you intended to sell the property. If they do manage to secure, then the debt will have to be paid when you do eventually sell out of the sale proceeds. To avoid this I would go for a quick bankruptcy now - as they will be unable to secure after an order has been made.

We are staying in the property because of the slump in the housing market de valuing our house into a negative equity position. As the 12th was the earliest appointment I'll just have to keep my fingers crossed that this will be soon enough. We I get the letter from NR solicitors I think I'll give them a call to confirm with them that I have the hearing booked for the 12th and maybe ask the court to confirm the appointment in writing.

Thanks Melanie

Dee

It might be worth ringing the court a few times to see if they have any cancellations.

We received a letter today from Gateshaed County Court regarding the NR loan. We have been given until the 16th May to reply, advising whether we admit the claim or not. As the Bankruptcy hearing is on the 12th I'm not sure what to do??
Any advice???

Thanks
Dee

Well assuming that you do file br on the 12th, the loan will fall into the br and the CCJ will be dismissed. It's usually after the date to reply that the case will go to court so they may well cancel it anyhow when they find out that you are br.
Hope this helps,
xx

Thanks Chris that does help.

Thanks Jane. You're right, as we are staying in the house we really dont want a CO applied. Not sure what else I can do though, I've told NR about our hearing date but they just weren't interested. As soon as the bankruptcy goes through perhaps I should call Gateshead County Court to inform them.

Dee

Jane, I know you have had a very complicated br and things haven't gone to script. However, I think the process is that they have to be granted a CCJ before they can apply for a CO. That's the way we had a CO placed on the house, it took around 6 mths from CCJ to CO.
As the br will be filed before the CCJ hearing I should imagine they wouldn't even get as far as applying for a CO as it would show preference to them over the other creditors if it was granted.
Don't think any judge would grant it under those circumstances.
xx

Yeah, Jane, I understand about the OR taking ages....our's is just as bad.
I suppose in that case it will probably be better for Dee to notify NR herself as soon as the br has been filed, giving them her br number to be sure they know.
Dee, I suppose you could put the br hearing date on the CCJ form and return it to Gateshead C/Court. That way you are also notifying them of the br incase the CCJ hearing goes ahead.
xx