Nationwide credit card CCJ and CO (Restriction k) going to sell soon **RESOLVED BY REDUCED SETTLEMENT**

[Andyorch]

Since the Land Registry Rules 2003 took effect in October 2003, a charging order is registered as either an ‘agreed notice’ (shown on the register as an ‘equitable charge’) or a ‘restriction’. Prior to October 2003 where only one of the owners / registered proprietors was the judgment debtor, the order was registered as a ‘caution’. A caution served much the same purpose as a restriction. Any cautions registered before October 2003 will remain on the register.

A notice or restriction does not impose an obligation to make payment when the property is sold. However if the judgment debtor (or any one of the co-proprietors) attempts to dispose of the property, the District Land Registry will advise the claimant of the interest in the property. Prospective purchasers will be wary of buying a property subject to a notice or restriction and, more often than not, will want the notice or restriction removed before completing the sale.

 

The effect of the restriction The debtor and his joint owner’s freedom to sell the property is not affected by such a restriction. They could sell the property as if there was no charging order against the debtor. All that was required was that the new buyers or their solicitor write to the creditor informing them that they now owned the property and then confirm to the Land Registry that they had given that

notice.

 

Then the buyers could register the property with no further complications. The creditor, who is sitting back, waiting to get paid, instead just receives a letter confirming that a sale has already taken place, typically a week or two after the sale so there is little they can do to get the debt paid. In theory the creditor could apply for a freezing order against the debtor to try and obtain the cash from the sale proceeds.

 

However, most creditors will never make such an application: The cost of applying for such a freezing order would run into thousands of pounds. The debtor might have spent the cash from the sale of the property before the freezing order was obtained so there is little, if anything, for the freezing order to bite on.

 

Regards

 

Andy

[Andyorch]

Its really dependant on how both Solicitors approach it...but if you do not want to complicate the sale probably best to pay it...assuming you agree you owe the debt ?

[Andyorch]

Simply tell your Solicitor to pay it from the proceeds and then deduct from your share of the balance.