going Bankrupt - advised to pay-off sygma CCj/charging order

[john]

I had a credit card from sygma on which I owe £2335.

 

they obtained a ccj on 1 April and interim charging order on 17th May.

 

I am in the process of declaring bankruptcy and have now received a notice of a full charging application to be heard in court on 14th July.

 

I have been receiving financial advice re: bankruptcy, and have been advised to pay this before the bankruptcy.

 

I have the £700 for the bankruptcy.

 

Should I write now and offer £700 and the rest instalments?

 

Also should I ask them to accept my offer in writing and put that when it is paid they will fully remove the charge from the land registry

and clear the debt from my file?

 

Is there anything else I should specify?

 

Thank you.

[dx100uk]

why did you not defend the case?

 

was this sigma or a DCA that got the CCJ/CO?

 

tell us more

 

dx

[john]

I did not defend because I had my head in the sand re: mydebts as I did not have any money as I haven't worked for a year. I hadn't evenbeen opening my post, just throwing it into a pile. The property in questionbelongs to my daughter and I was supposed to be guarantor for the mortgage butat the last minute the building society said I would have to go on as a jointmortgagee, and the solicitor would document that I only owned 1% of theequity. When I realised that I needed togo bankrupt my daughter contacted the solicitor, who said they had no record ofthis as they have lost the documents. During this process we both received aletter from the land reg. saying ascent had a charging order and we could agreeor defend it by June 20th. We both wrote to object due to a) my daughter notbeing liable, and b) my bankruptcy which was due to be declared on Monday. Obviously the charging order is my firstworry as it is my daughters property, the debt is very small really.

They (Ascent)obtained a CCJ on 1st April and an Interim Charging Order in the County Courton 17th May.

Land Registry willbe registering this interim order against the property.

The Full Chargingapplication is being heard in the County Court on 14th July.

My advice from accountant was to pay all money saved forbankruptcy to settling the charge, but he has today alerted me to thisarticle:-

http://www.lawgazette.co.uk/law/charging-orders-and-their-impact-on-creditors-and-debtors/53640.article

which refers to several cases whereby the Full ChargingOrder petition has been DECELINED by the Court because the creditor hasobtained a Bankruptcy Order between the Interim Charging Order and the FullCharging Order Court application. (i.e. if I were to get a Bankruptcy Order BEFORE 14th July then there could bea good chance that the Charging Order will be thrown out by the Court)

I am even more confused than ever, now, as the accountanthas quite rightly stated that he is not a solicitor and it is just advice. My bankruptcy appointment is at 10am mondayand I have only got the fee to my name. So do I pay bankruptcy fee or debtcollector?????

[dx100uk]

who was asent legals client the claimant

[john]

yes, sygma is their client

[dx100uk]

ok the w/end can be quiet with those that can help

 

I've moved you to the legal forum

 

you should get help here

 

dx

[john]

Thanks a lot

[Bandit127]

When you go bankrupt, do you want to stay in your home by buying the beneficial interest from the official receiver (OR)? Is that why you have been advised to pay Sigma before bankruptcy.

 

I hope you are aware that preferential treatment of creditors could get you in to trouble with the OR.

 

I think that there may be weighty consequences at stake here. If you haven't already, I would post up on the MSE Bankruptcy And Living With It forum for additional advice. I am not knocking the experts here on CAG, but in this case I would be casting my net as wide as possible. If you do go bankrupt it will be a good forum for general advice and support as well.

[john]

The property is in negative equity so there is no financial benefit from selling it but my daughter would potentially purchase my share. This debt is included with the bankruptcy but I thought the potential charging order would take precedence.

[Old Cogger]

If you are a joint owner on the deeds, therefore only a restriction on the deeds, read up about restriction and charging orders, you may be panicking for nothing? the restriction would be on the deeds until one day property sold then if a decent solicitor knew the rule they would notify the O.C. after payments have been given out ! I am sure others will advise soonest, see what they state???