OK, quick update on this one. Solicitor has advised me to go ahead with a forced sale of the property (Im a creditor, not debtor). Have gained possession of the property and forced sale is going through. No need to worry about other creditors putting charges on as Im in line after the mortgage lender. Only concern is to ensure the debtor dosnt go bankrupt while selling the property, or other creditors force the debtor to go bankrupt as my solicitor has informed me there is nothing that can be done that can prevent the property from being classed as the debtors asset in the event of bankruptcy, although I heard that in some bankruptcy cases, property is not always necessarily added into the pot. Anyone clarify this ?

ok, thanks

Creditor issued CCJ for full loan amount (10K) then interim charging order placed on property pending court hearing October. Today recieved letter from creditor with amount the account is in arrears (£600) along with an office of fair trading arrears fact sheet. There is mention to ignore the letter if the arrangement has already been made to clear the arrears. I guess this is an automated letter, but could we take advantage of it to simply pay off the arrears and it stops court proceedings ?

Hi A creditor has applied an interim charging order on a property. It was an un-secured loan for 10K, and now they are seeking to finalise the charging order to a secured one via a county court hearing in October. my question is - is it at all possible to still negotiate with the creditor to resolve the issue without going to court ? They issued a CCJ for immediate payment of 10K, which ofcourse, could not be paid, so they went straight to an interim order. Im wondering if the creditor is willing to accept payment to cover the arrears, and an agreement to continue the monthly payments as normal, with the view that they would have the interim charge removed. Would this be a possible course of action ? Or even negotiating a settlement figure in one lump sum, say 6-7K ?

How satisfied does a bank have to be when they are contacting creditors who have charging orders / interim charges on a property. I am 2nd in line with my final charge of 17K, where there is just enough equity to cover it, but this other creditor has popped an interim charge on the property amidst the sale of the property, but there isnt enough equity to pay this interim charge and it hasnt been finalised. Does a bank have only to contact the creditor and inform them that there is no equity and continue with the sale as normal or does the bank have to wait to hear what the creditor has to say ?

Thanks. Out of interest, is it possible to bring a court hearing date forward ? Thats a court hearing date specifically to see if an interim charging order can be made final or not. The court date is 2 months off, Id rather bring it forward.

Thanks. The insolvency helpline website is gives very useful and interesting information on charging orders. Im particularly interested in the following entry on there: "If you are likely to be made bankrupt, you can argue that a charging order would give the creditor an unfair advantage over other unsecured creditors." As I know for a fact that the debtor is going to make himself bankrupt before long. Im just hoping that if he does, the pending sale of the property can still go through as it will be being used to clear of whatever debts he has anyway, the equity just wont clear all of it (maybe about 50% of his debts)

Hi An interim charging order has been placed on a property that is in the process of being sold. The court hearing date is towards the end of October. The company that issued the interim charging order do not yet know that there is no equity in the property to cover their charge. Can the house still be sold ? Would the bank who hold the mortgage on the property notify the purchasers solicitors and refrain from continuing with the sale of the property until any disputes with the interim charge have been settled ? Would it be a case of the bank contacting the creditor and saying "look, its pointless having an interim charge on the property as you wont get paid so you are wasting your time" and continue with the sale as normal ?

What happens to interim charging orders applied via CCJ and noted on the land registry in the event that the interim charge was applied whilst the property was in the going through the early stages of a sale to new owners? Im guessing the banks would contact all creditors listed and go through the pecking order and only clear what creditors can be cleared ? The courts who have put an interim charge on the property at this moment in time, are not aware of no equity in the property for them to pursue finalising the charge at a court hearing. Would it be advisable to contact such creditors so the interim charge can be removed and therefore not delay the sale of the property to the new owners ?

Here is another update: Ive been sent notification from his creditors solicitors, who have said that I dont need to respond to their letter unless I intend of going to the hearing. I understand my brother can object to the 2nd charge being made and perhaps I could also if I felt the charge would put my interest at a disadvantage. However, there isnt enough equity in the property to cover my charging order let alone further orders. Current house value = 70K. Mortgage gets paid off first (55K) = 15K Im left with a 2K short fall. What would happen if my brother declared himself bankrupt - Would the official receiver would take the property as an asset, and any equity would then be shared fairly amongst creditors? My question is, just how fairly would the equity get shared ? Im owed 17K, one of his creditors is owed 11K and another creditor is owed 1.4K (but the 3rd creditor hasnt got as far as putting an interim charge on the property, yet - they could do in due course, only time will tell) Would the distribution be as a proportionate % or split 50/50, ie. myself and the 2nd creditor get 7.5K each ? If, the outcome at the court hearing was that the charge isnt granted, could his creditor force him to go bankrupt ? If so, how would my charging order be affected ? Can my brother object to the Interim Charge Order that his creditor has placed with the land registry, by calling the lang registry and simply stating the reasons why he objects ? Will the interim charge order prevent sale of the property before the court hearing ? Any advice much appreciated as Im really at loose ends with all this. The stress its causing to me and my partner is getting unbearable.

Hi again I just wanted to update this thread a little. My brother has received a letter from the Land Registry 'B132 Notice to a registered proprietor of an application to enter an agreed notice' The application was lodged by his creditors solicitor company. On the letter it says: "As a result of this application the following entry has been made in the Charges Register of the above title number" "Equitable charge created by an interim charging order of the Gateshead County Court dated 1 August 2009 in favour of " As far as I am aware, my brother has not yet filed for bankruptcy. Im assuming that this recent charging order goes 3rd in line after my own charging order as per our previous discussions in this thread (the pecking order) ? In the event of a sale of the property, once the mortgage has been paid off in full, Im next in line, and therefore I would receive 100% of my entitlement or would the remaining equity be split a certain % between each individual who has a charging order on the property ?

Yes thanks, that clears everything up. Many thanks for all your help.

The charging order was put on the property by means of inheritance, and I have the death certificate to prove it all happened within months of the passing of my mother, as well as solicitor documentation. I will be speaking with my brother again to see what advice he has been given. Thanks again and have a great weekend

The house is a small terraced worth 70K. My brothers mortgage is 55K. My share is a minimum value of 17K or 25% whichever is the greater at the time of sale. Looking at the figures, its safe to say that what equity in the property wont even pay my 17K minimum which was agreed when the charging order was made. Ive had the charging order for 2.5 years. The agreement I made was that my brother could not borrow any loans secured on the property that would jeopardise my 25%, which he has adhered to as all is debt was taken out unsecured. I guess in the event of a sale, the mortgage gets paid off in full then whats left goes down the pecking order.

Thanks for the info. Just want to clarify that a pecking order exists whether or not my brother declares himself bankrupt? All his creditors are unsecured, but Ive heard that once a debt agreement is cancelled due to lack of payments, the money owed can be turned into a secured one in the form of a charging order on the property, if thats the case, would a pecking order continue to exist ?