Charging order for £3k, is this good or bad news?

[Exclus]

Re: Charging order for £3k, is this good or bad news?

Is the property in your name only, or in joint names (see the notes above from Cit Advice)? It makes a difference in so far that if it is in joint names the charging order will be noted down as a charging restriction at the Land Reg. ie. It's your debt only and it's highly unlikely that any judge would order a sale - particularly for the relatively small amount you owe if the property is in joint names. Just a word of warning, Restons are a particularly nasty bunch, and I would not trust them one bit. You are in good hands with PlanB advising.

[mike'y]

Re: Charging order for £3k, is this good or bad news?

Hello and thank you for the replies. I am single and the house is registered in my name. Another creditor who is owed 3 times as much doesn't want a charge and is happy for nominal payments. In principle I don't mind if Restons have a charge so long as a forced sale isn't looming over my head. I think there's a template letter somewhere that may help. I'll reply to Restons in writing and see if I can either agree slightly increased payments or a charge but not both.

ETA I've sent a polite letter indicating I would't oppose a CO if I have an assurance that an order for sale won't be applied for in the future or that the debt wouldn't be sold to another DCA. I've also pointed out I feel a CO is excessive given the small amount owed and mentioned that my other creditors aren't pressing for a CO. I've offerred to either pay monthly affordable payments or accept a CO with nil monthly payments. I've made references to costs and administration being kept to a minimum. Guess I'll sit back and wait now.

I've had a good result on another matter so all in all I'm fairly happy.

[PlanB]

Re: Charging order for £3k, is this good or bad news?

I've sent a polite letter indicating I would't oppose a CO if I have an assurance that an order for sale won't be applied for in the future or that the debt wouldn't be sold to another DCA. . . .

. . . . I've offerred to either pay monthly affordable payments or accept a CO with nil monthly payments. I've made references to costs and administration being kept to a minimum.

I would probably have handled that a bit differently. Having said that I think it was wise of you to enter into negotiations (my suggestion) but maybe it wasn't wise to admit in writing that you don't oppose a charging order.

You've told them that this (a voluntary CO) would be dependant on them not selling the debt to another debt purchaser which is a big 'ask' since that commercial decision is unlikely to be in the hands of the minion you are dealing with. These debt purchasers buy/sell whole portfolios which include thousands of accounts, and at the same time these companies are involved in mergers, acquisitions and takeovers not to mention the possibility of the business going into liquidation etc. The promise not to sell you on is unlikely to be agreed as part of your negotiation.

I expect you will get a letter back with a counter-offer which I hope is acceptable. Post up on here when you hear from them.

On a more positive note I'm impressed to see that you sent them a polite letter which must have been difficult when you and me both know it would have been great to have said


PlanB x

[mike'y]

Re: Charging order for £3k, is this good or bad news?

He he, look at the interest that I'm saving. They'll have to administer my account for 3 years and I write a lot of letters or wait until I sell my house. I think it's a win win for me They've already said that the CO is only for security and not for the intention of looking for a forced sale. I want them to clarify this again and/or accept monthly payments. My logic is that if they have a CO (with no forced sale) why would I want to make monthly payments? Like you said, they can fuck off. I'm happy to pay a little for 3 years or accept a charge that may take 10 years to come into force. What will 3k be worth in 10 years? I've no idea but it'll be less then it was.

[mike'y]

Re: Charging order for £3k, is this good or bad news?

Well, I've had a pretty unhelpful reply from Restons. I'm minded to ask for a restriction to be placed on the CO to the effect that the sale of the house can't be forced. Or I could oppose the CO and inform the CT that I'm willing to make £10 per month payments so why the need for a CO. I've attached a copy of my 'polite' letter to Restons and their reply to myself.

I actually want to tell them to f**k off and that I'll object to the CO but in reality it's not such a bad solution if they don't pursue me for monthly payments as well as obtaining a CO. Hmm, can I have your comments please? Thanks.

Restons reply 12th jan 2015.pdf
Letter to Restons 080115.pdf

[PlanB]

Re: Charging order for £3k, is this good or bad news?

That letter from Restons doesn't actually say that they have or are going to apply for a Charging Order.

If they do then you can object to it at the hearing if you've got a good reason.

If a CO application is made you should be sent a copy by the court with a hearing date.

At the moment you are making no payments towards the CCJ and haven't made any since it was granted three years ago. Maybe they are simply putting pressure on you to get some money flowing?

[mike'y]

Re: Charging order for £3k, is this good or bad news?

Hello PlanB, thanks for your reply. It was their letter at the start of the thread which said they intended to make an application. I think you're correct, they are being pushy. I guess I'll have to wait and see if an interim CO arrives. I'd still like to send them back a feisty reply though, lol

[Still Waving]

Re: Charging order for £3k, is this good or bad news?

Hi mike'y
You haven't properly obliterated your personal details in the attachements. You should remove the attachments immediately, and substitute with a properly redacted version.

[PlanB]

Re: Charging order for £3k, is this good or bad news?

It was their letter at the start of the thread which said they intended to make an application. I think you're correct, they are being pushy. I guess I'll have to wait and see if an interim CO arrives. I'd still like to send them back a feisty reply though

It's your choice how you handle this. It seems you're wrestling with your emotional response to tell them to 'stick it' and your intuition which is telling you that's not the right thing to do.

I write loads of feisty letters but I never send them. It feels good to get it off my chest but common sense kicks in at the right moment. That's why I never email creditors because I'm impulsive.

You're right they are "intending" to get a CO and from everything you've said so far they're probably in with a chance if this goes to court. Why wait for the interim CO to happen if you can fend it off with an offer?

[mike'y]

Re: Charging order for £3k, is this good or bad news?

PlanB. Would it not be better if they have a CO but have to wait until I sell up before they get paid? They initially say that their client just wants the security and doesn't intend to force a sale. I could point this out to the Court and ask for a restriction or amendment to the CO to this effect?

[PlanB]

Re: Charging order for £3k, is this good or bad news?

Would it not be better if they have a CO but have to wait until I sell up before they get paid? They initially say that their client just wants the security and doesn't intend to force a sale.

Better for whom? Obviously it would be better for Restons to secure a debt which a court has decided that you owe and rightly or wrongly you can never argue against that decision. You have a CCJ which sadly will never go SB

I have no idea what's going on in Restons' mind at this point. Maybe you need a psychic to answer that one


We could go round and round in circles for ever on this one.

[mike'y]

Re: Charging order for £3k, is this good or bad news?

Yes we could. I'd be happy enough paying in full when I sell my house. I'm not in a position to offer very much in the way of monthly payments at the moment. I'll wait for the interim order and make a decision then. Thanks Plan B

[PlanB]

Re: Charging order for £3k, is this good or bad news?

I'd be happy enough paying in full when I sell my house. I'm not in a position to offer very much in the way of monthly payments at the moment. I'll wait for the interim order

There you go. You've made a decision.

You're comfortable with a CO which means the CCJ will be paid off when you sell. You've got at least two letters from Restons confirming their client won't go for an Order for Sale. You've got your paper trail sorted.

In which case I see no need to volunteer a charge since they can get one if they want. Why make it easy for them.

They'll probably go on asking for payments but what can they threaten you with once they've got their CO? If push comes to shove pay one pound a month into their bank account. That'll total £36 by the time you come to sell the property in three years time.

Enjoy your weekend in a more relaxed frame of mind

[mike'y]

Re: Charging order for £3k, is this good or bad news?

Lol, by the time I sell my house I'd hope that 3k is worth a sack of peanuts . It could be many years before I sell. I'm not planning to sell in 3 years time. Thanks PlanB, I hope you have a nice weekend to.

[PlanB]

Re: Charging order for £3k, is this good or bad news?

It could be many years before I sell. I'm not planning to sell in 3 years time.

Have you checked your CCJ doesn't allow for interest to be added?

If you're employed Restons may decide to go for an Attachment of Earnings Order instead of the CO if you don't start to make payments.

I'm not saying that to spook you, I'm saying it because as much as you hate the idea you still need to 'play nicely' in correspondence as a precaution.