Question

Help! I received a CCJ and now I have been informed I have a charging order against my property. What can I do? Are they going to repossess my home?

Karen

Answer

Karen,

Charing Orders are serious, and a part of the enforcement process of having a CCJ/County Court Judgment.

A couple of questions to give me a better understanding of your situation.

Were you in a repayment plan with the account prior to the CCJ?

Do you owe any other accounts, and are you in arrears with them?

When you were first notified of being taken to court to have the creditor get a CCJ against you, did you notify the court, and complete an income and expense form to show what you can afford to pay?

Did you default on any repayment plans?

Usually as long as you and the lender agree to a repayment plan, the matter stays out of the courts.

A Charging Order against a property in essence makes an unsecured debt now secured, secured by the property. It is rare a creditor would force the sale of a property, and rare the courts would allow it. How much do you owe, and what is the value of your property?

In most instances, the Charging Order sits against the property until it is sold, or remortgaged, then the debt is paid out of the sale of the property.

Regards,

Jon

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