CCJ and Charging Order

[goldygue]

My spouse recently lost his job. I have debts totalling £28,000. The largest creditor MBNA had agreed to monthly payments of £47.73 per month which was their share of my available income. They then stopped taking the direct debits and have now issued an application for judgement. I believe that they will be seeking a charging order. The home is mortgaged with only approximately £20,000 of equity. The property is jointly owned. We have two children aged 6 and 2. I am very worried that they will succeed with both of their aims. Would they then be able to sell the property even though this would not cover the debt after the mortgage is repaid.

 

Is there any point in resisting it or should we simply agree to the CCJ? If we did defend it by trying to ask for repayments to be assesssed by the court will this incur a disproportionate amount of costs. As it is £16,500 it will not be a small claim and the costs can be high.

 

As I have never been in this position before and this is my first post I would be grateful for any advice.

[honeybee13]

Hello there, welcome to CAG.

 

I'm sorry to hear about your problems, what a tough time for you.

 

I've flagged up your thread to the site team in case there's a different forum where you might get more advice. I'm sure people here will be able to help, chin up.

 

My best, HB

[Cadbury1879]

Hi there,

Sorry about your problems, your not alone in facing these issues though.

My first point would be that orders for sale, after C/O are very very rare. Iwould not worry about that scenario.

You can defend the CCJ not in my experence so best left to others to help. You can also defend the C/O.

Have you recieved a claim from the court?

Is the debt in one name only, and the propertyjointly owned? Sure a few others will be able to assist.

All the best

Cad

[goldygue]

Thanks Honeybee. I am really impressed with the speed of your reply.

[goldygue]

So far I have received a claim form from the court. The debt is in only one name but the property is jointly owned.

[Cadbury1879]

Goldydue,

sure you will have some opinions on defending the action.

On the C/O issue I will give you my experience.

If you defend & lose or admit they will almost certainly try to " secure" this debt by a C/o. You can defend this,particularly if you can obtain a installment order.

That mbna cancelled your DD is a disgrace, as you were making a genuine attempt to pay within your means.

In our case, my spouses debt, around 20k.

We did not defend the claim,we defended the C/O& llost.

(Have been more success,s recently though).

A judge ordered a payment of £90 per month, upon redirmination.This was 2007,heard nothing since.

So don't stress to much.

Just obtain as much advice as possible.

 

Cad

[Cadbury1879]

http://www.consumeractiongroup.co.uk/forum/showthread.php?203298-A-guide-to-Charging-Orders-amp-Orders-for-Sale

info to help

cad

[seen this before]

Hi there,

My first point would be that orders for sale, after C/O are very very rare.

Is the debt in one name only, and the property jointly owned?

Cad

 

you need to watch these charging orders thy can and do result in the loss of your home,this may not be the case here as there are dependents,but these are very serious especially for people who own property.really it should be stated that both unsecured as well as secured debts can and will lead to the loss of your home.

[Cadbury1879]

you need to watch these charging orders thy can and do result in the loss of your home,this may not be the case here as there are dependents,but these are very serious especially for people who own property.really it should be stated that both unsecured as well as secured debts can and will lead to the loss of your home.

The recent review of Charging Orders by the goverment, give very detailed statistics.

The numberof C/o have risen dramatically.

The number of Orders for sale, remain extreamly low in comparison.IMO Dj,s only grant these in very exceptional circumstances.

[rebel11]

Thread moved.

[AndyOrch]

Goldy

 

You need to forget about Co,s for now and deal with the claim firstly.Is it an N1 from Northampton.

If so can you type out the particulars of the claim (less any identifiable details)

Date of the Summons and the Claimants Sols?

 

Regards

 

Andy

[goldygue]

Thanks for all the help. The current situation is that I have received the initial Claim Form. I have been advised by a debt agency to complete the acknoledgement of service indicating that I am defending part of the claim. This is because the claim form refers to the agreement being "on or about a date in february 2001". This I hope means that they do not have the Credit Agreement to hand otherwise they would have stated the correct date. I have sent them my poun and asked for a copy of the agreement. Just need to see what happens now. I will keep you posted.

 

GoldyGue

[AndyOrch]

"I have been advised by a debt agency to complete the acknowledgment of service indicating that I am defending part of the claim. "

Do that and you will end up with a CCJ for 6 years, defend it all.

Keep an eye on the dates you have (14 plus 5 to AoS) and a further 14 if you do defend to submit your defence.

Also use the CPR to request information to the documentation pertaining to their claim this will form part

of your defence along with your CCA request later.

 

Regards

 

Andy

[Undercover-Elsa]

Hi,

I totally agree with Andy. You need to get focused and defend this fully.

 

Start by reading here: http://www.consumeractiongroup.co.uk/forum/showthread.php?241827-Legal-Action-how-to-start-off.-IMPORTANT-IF-YOURE-BEING-SUED(1-Viewing)-nbsp

There you'll find all the info you need to start off, plus a template for the CPR 31.14 template you need to send them.

 

 

In respect of the comments regarding charging orders....if you jointly own the property you cannot get a Charging Order as such. IF you got a CCJ and IF you didn't keep up with instalments, the best they could do is get a Restriction. This means you are free to sell your property as you wish. Technically they could force a sale, but this is rare and even more so in your circumstances where young children are in residence.

 

 

kind regards,

 

Elsa x

Edited June 11, 2011 by Undercover-Elsa
Correction of information!

[Undercover-Elsa]

More info on restrictions:

 

http://www.bllaw.co.uk/pdf/financeandrecoveries_0806_charging%20orders%20on%20property.pdf

[Ganymede]

Hi,

I totally agree with Andy. You need to get focused and defend this fully.

 

Start by reading here: http://www.consumeractiongroup.co.uk/forum/showthread.php?241827-Legal-Action-how-to-start-off.-IMPORTANT-IF-YOURE-BEING-SUED(1-Viewing)-nbsp

There you'll find all the info you need to start off, plus a template for the CPR 31.14 template you need to send them.

 

 

In respect of the comments regarding charging orders....if you jointly own the property you cannot get a Charging Order as such. IF you got a CCJ and IF you didn't keep up with instalments, the best they could do is get a Restriction. This means they cannot force a sale, and you are free to sell your property as you wish. There's a requirement that they are informed of the sale. That's it.

Hope this eases your mind somewhat after the earlier comments.

 

kind regards,

 

Elsa x

 

 

 

You're not quite right there, you can apply for an Order For Sale off the back of a Restriction.

[sanders112]

Hi – I have just finished work to find a letter from my local county court notifying me in a judgment on behalf of the CSA for £13000.!!

For the past four years I have battled with the CSA on the fact that I have been paying my ex wife via direct debit a weekly sum of monies that we had agreed. I also tried to explain to them that I had re married and have children. This has not been taken into consideration. After my divorce over 9 years ago I was forced to go into bankruptcy, I have obviously over come that and been very careful with monies trying to rebuild my credit history, now without any correspondence from the CSA I find myself in the same position that I was all those years ago. I am now 43 years old hoping to buy a get a mortgage and start again – the CSA has now basically stopped me from doing that due to their incompetence. I will now be unable to borrow money for at lest 6 years which means not being able to pay for my daughters wedding or anything like that. No wonder dads commit suicide because of this unapproachable defective hostile group of people.

This is my first post so sorry if its not applicable to your thread perhaps you could direct me. Regards

[seen this before]

not wanting to detract from the main thread but people do need to watch these charging orders, the problem also is that local housing departments at the council are pointing to being intentionally homeless as a reason not to rehouse.really its best pay a few pounds a month and be without one of these then having to pay the same with an order in place,while there has to be a default on a judgment this can happen without leaving the room if its a forthwith judgment

[Undercover-Elsa]

You're not quite right there, you can apply for an Order For Sale off the back of a Restriction.

 

Hi Gannymede,

Thanks for bringing this to my attention

I've just had a trawl round, and you are absolutely right, technically they can order a sale. Thankfully though it seems it rarely happens, and the fact that the OP has 2 young children makes it even less likely. I believe the OFT are also very disapproving of the indiscriminate use of CO's as debt collection tools.

 

Back to business..they haven't even got a CCJ yet so hopefully Goldy will come back on today to discuss the way forward.

[goldygue]

Blimey, I know what I will be doing this weekend. Thanks for all the info. I will need time to digest all of this.

 

Goldy