"Surprise" Inhibition order being enforced, unless payment made today? - SCOTLAND

[Jambo Piper]

Hi All.

Apologies if posting in wrong forum, couldnt find anything similar elsewhere. I am basically looking for some advice to make sure I dont leave myself open to further issues.

For the record, I am, and all action, is Scottish based.

Following my divorce back in 2004, it was decided that the legal expenses were deemed payable by me. The Scottish Legal Aid board then demanded payment (£3447.21) and I explained at the time I was in no position to pay, with barely enough income to allow me to eat at the time. They sent a chap to my house, who filled out a form with me, pretty much confirming my position at that time. I have never heard anything since from the Scottish Legal Aid Board.

Since then, I have spent the last 6 years desperately trying to clean up my credit records, pay off all my debts, and try to return my life back to some sort of normallity, which for the main part, I have managed to do. I was even able to eventually get myself a mortgage (albeit from a "fringe" broker with higher than normal interest rates), and bought a small 1 bedroomed property, perfect for me.

 

Then the bombshell! It would appear that a schedule of inhibition was granted on the 4/06/2005, which would prevent me from selling any property or land unless this legal aid debt was paid.

I had no idea whatsoever this inhibition schedule had been granted until last week and even when I did eventually sell my small property back in 2009, nothing was brought up, mentioned, or apparant then.

 

Last week, completely out the blue, a Sheriffs officer appeared at my current property and posted through the door a copy of this very inhibition notice. He then chapped both my neighbours doors asking where I worked, what vehicle I drove, when was I likely to be home etc etc. All pretty embarressing for me. Natuarally I called the number on the attached letter, and was surprised to find it was for the expenses awarded against me back in 2005. I explained I had no idea this inhibition had been granted, and asked why they simply hadnt written to me? They said they had written to me back in 2010, and the letter was signed for by (an ex girlfriend who lived briefly at this new property whilst I was working up North for a few months). I genuinely knew nothing about this. I can only assume the letter was set aside, and was perhaps accidently disposed of before I had a chance to read?

 

Despite explaining this, I have been told to pay the full amount by close of business today, or this order will be enforced - affecting my credit rating etc. The total amount is £3672.37 which is the original charge, + serving fees of £114.48, + charge fees of £110.68.

 

This will all but wipe out my entire savings which I have managed to accrue over the last two years or so (after finally paying off all my debts) through hard work and being extremey careful with my money. I just feel I am back to square one again, and wish I had known about this from the start - and was given a chance to come to some agreement in terms of paying this up. At very worst, a fair portion of it may have been paid by now.

 

Should I, (indeed can I?) challange the order and risk my credit status all over again, or should I simply pay the lot and be left with nothing again? Or should I pay the expenses and challange the fees? Im not sure what to do here - but not thinking clearly due to the shock of it all.

Any advice would be appreciated.

 

Thanks in advance.

[sequenci]

Hello there. I don't know what they mean by 'enforcing' the inhibition. They cannot force the sale of the property. I think they are just bullying you.

[caledfwlch]

Just done some googling and picked this up from CAB.

 

A creditor must send you a Debt Advice and Information Package and if this was not done the inhibition is not valid. You are likely to need help from an adviser to argue this point. - Was this done?

 

The creditor cannot take over the ownership of your property but as long as this power is in force it does mean that you can’t sell it and keep any profit from the sale. An inhibition can be in force for up to 5 years.

 

You say its been 6 years since it was imposed? If that info is correct, then it is entirely possible the Inhibition Order has actually expired! That could well be why you have a Sherrif's officer sniffing around, hoping to trick you into a payment as its run out.

 

From what I can see though, it is very similar to a charging order, except it is placed on a person rather than a specific property, and thus there is nothing the Sherrif can do.

[wonkeydonkey]

This needs to be seen by Idain fife I will flag the site team.

 

WD

[caledfwlch]

This website too

 

http://www.aib.gov.uk/services/inhibition

 

Says that an Inhibition Order lasts only for 5 years.

[Jambo Piper]

Wow!

You guys are good.

I have looked closely at the actual wording - I have it here in front of me. It looks like its the actual Sheriff Officer who carries out the inhibition rather than the court/creditor?

I will write word for word as I dont have a scanner to copy it;

 

SCHEDULE OF INHIBITION

Date of Service; 16/05/12

To MR JAMBO PIPER of BLAH BLAH

 

In her majestys name and authority and in the name and authority of the sheriff, I ******, sheriff officer, by virtue of a decree by the sheriff Court at ******* granted on the fourth day of June, Two Thousand and Five, inhibit you from selling, disposing of, burdening or otherwise affecting all land and heritable property in which you have an interest to the prejudice of (ex wifes name), (ex wifes address).

 

This I do in the presence of ********, Officers Assistant, Witness (address of Sheriff officer office)

 

We are instructed in this action by Scottish Legal Aid Board, Drumsheugh Gardens, Edinburgh to whom all payments and correspondance should be directed, quoting ref ****

 

(A copy of debt advice and info package accompanies this Schedule)

 

 

After speaking with the Scottish legal aid board, I was given three peices of information, with a load of spraff in between!

1) After asking why they simply hadnt written to me - "We do not like issuing inhibition notices, however it is the only tool we have to recover tax payers money"

 

2) "The inhibition will be enforced if full payment isnt received today". (By enforcement I think she meant attachment to my property? Im guessing since the order was granted back in 2005 it has simply been hanging in limbo waiting to be attached to something?)

 

3) "it will effect your credit rating enormously"

 

Having looked at the paperwork again, is the 5 year expiry date from the date of service, ie when the Sheriffs Officer decides to inhibit, or from the day the initial inhibition was granted in court?

[caledfwlch]

According to the info:

 

Generally the inhibition takes effect from the day it is registered in the Register of Inhibitions and Adjudications following service of the schedule of inhibition in accordance with section 155 of the Titles to Land Consolidation (Scotland) Act 1868

 

Thus, I would say that your friendly Sheriff's Officer is hot out of luck The order was granted in 2005, it is now 2012, thus the order has expired!

 

Just to be clear, this Order was not made against any specific property you owned, but against you personally, and thus, it applied to any property you owned. In effect it is like a Charging Order, but allows them to take their cut, from any property you own, rather than attaching a debt to a specific building.

 

I wonder if there is a defence against them applying for another order, based on the fact they don't seem to have properly served it in 7 years!

 

If you do not currently own a property, then a new inhibition order would be a little pointless. The only sticky thing is you had a house which you sold, however, since they did not serve the Order on you, how could you have known.....

 

There is also absolutely nothing the Sheriff can "enforce" and I would say that attempting to trash your credit file 7 years after the action would be a big No No!

[Jambo Piper]

Hmm. I just had a look at the "titles to land consolidation (Scotland) act 1868" as above and found this;

149Date on which inhibition takes effect

 

 

In the Titles to Land Consolidation (Scotland) Act 1868 (c. 101) (in this Chapter, the 1868 Act), for section 155 (date on which inhibitions take effect) substitute

 

155Date on which inhibition takes effect

 

 

(1)An inhibition has effect from the beginning of the day on which it is registered unless the circumstances referred to in subsection (2) below apply.

 

(2)Those circumstances are:

 

(a)a notice of inhibition is registered in the Register of Inhibitions;

 

(b)the schedule of inhibition is served on the debtor after that notice is registered; and

 

©the inhibition is registered before the expiry of the period of 21 days beginning with the day on which the notice is registered.

 

(3)In those circumstances the inhibition has effect from the beginning of the day on which the schedule of inhibition is served.

 

(4)A notice of inhibition must be in (or as nearly as may be in) the form prescribed.”.

 

As this notice wasnt served on me until 16/05/12, then I think they might be within the law. However, I have no idea if schedule had already been registered in the Register of Inhibitions, indeed if it has even been registered yet? Which begs the question of how long a creditor can hold onto a decree granted in a court before using it to issue an inhibition notice?

[caledfwlch]

Hmm. I just had a look at the "titles to land consolidation (Scotland) act 1868" as above and found this;

149Date on which inhibition takes effect

 

 

In the Titles to Land Consolidation (Scotland) Act 1868 (c. 101) (in this Chapter, the 1868 Act), for section 155 (date on which inhibitions take effect) substitute

 

155Date on which inhibition takes effect

 

 

(1)An inhibition has effect from the beginning of the day on which it is registered unless the circumstances referred to in subsection (2) below apply.

 

(2)Those circumstances are:

 

(a)a notice of inhibition is registered in the Register of Inhibitions;

 

(b)the schedule of inhibition is served on the debtor after that notice is registered; and

 

©the inhibition is registered before the expiry of the period of 21 days beginning with the day on which the notice is registered.

 

(3)In those circumstances the inhibition has effect from the beginning of the day on which the schedule of inhibition is served.

 

(4)A notice of inhibition must be in (or as nearly as may be in) the form prescribed.”.

 

As this notice wasnt served on me until 16/05/12, then I think they might be within the law. However, I have no idea if schedule had already been registered in the Register of Inhibitions, indeed if it has even been registered yet? Which begs the question of how long a creditor can hold onto a decree granted in a court before using it to issue an inhibition notice?

 

I think it is extremely unlikely they can wait 7 years to serve it, and keep it legal!

 

Is there a typo there?

 

the inhibition is registered before the expiry of the period of 21 days beginning with the day on which the notice is registered.

[caledfwlch]

Just saw this:

 

prior to 22 April 2009, the general rule was that the inhibition took effect only when it was

recorded - unless a notice of inhibition was recorded, served, and then recorded

again within 21 days in which case the inhibition was effective from the date the

notice was first recorded. This became the common practice as a means of bringing

forward the effective date and to prohibit land disposal as soon as possible.

 

If I am understanding it correctly, the rules you refer to are actually designed to make the Judgement apply AS SOON AS POSSIBLE from the granting of the Inhibition Order! So, waiting 7 years to serve, and register is NOT the intention, this purely means that instead of having to wait 3 weeks, say to make it fully effective (the creditor might believe the debtor is attempting to quickly dispose of an asset) the order becomes effective much sooner, as it is applied from the start rather than in 3 weeks time, if that makes any sense - its to cover the Debtor trying to sell property in those weeks leading to full registration.

[Jambo Piper]

Just spoken with a Lawyer over this.

In Scotland, a creditor can hold a court decree up to 20 years without any further action. Any expiry dates come into effect 5 years (depending on course of action), after the date of service of said action - so in my case, the schedule of inhibition will expire 5 years after it was served - which was only last week. Further to that, the creditor is free to apply for another schedule of inhibition immediatly after the original has expired.

 

Boo. Looks like Im going to have to pay.

[caledfwlch]

Just spoken with a Lawyer over this.

In Scotland, a creditor can hold a court decree up to 20 years without any further action. Any expiry dates come into effect 5 years (depending on course of action), after the date of service of said action - so in my case, the schedule of inhibition will expire 5 years after it was served - which was only last week. Further to that, the creditor is free to apply for another schedule of inhibition immediatly after the original has expired.

 

Boo. Looks like Im going to have to pay.

 

Any onus on the creditor to prove they DID NOT serve?

 

Otherwise you could just set up an affordable repayment plan - there is little they can do to you with this order.

[citizenB]

I suspect there is little that can be done now until Wednesday because of the long Bank Holiday Weekend.. but it might be worth contacting the following.. I know they are in Glasgow.. but that is in Scotland as well

 

http://www.gain4u.org.uk/document.aspx?cid=2

 

govan law centre website might also throw up some help.

[IdaInFife]

Hiya inhibition orders are rolling meaning yes they expire after 5years biut then the so's can reapply after this to continue it.

 

It means you cannot sell the dwelling without the balance being paid or an arrangement I place for proceeds of sale being paid direct to them.

 

Some of your posts are slightly misleading

 

Do you currently own the property that is on the inhibition order details?

 

You previously had an inhibition order for csa arrears a. What happened to that?

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?127098-Inhibition%20Order%20on%20property...%20??