| T O P I C R E V I E W |
| beermonster |
Posted - 14 September 2009 : 18:25:09
Hi
Does a charging order literally mean that if you sell your house or remortgage you have to pay it off? I've just found out that a charging order was put on my house in 2007, I didn't receive any information (mind you at that stage I was being very stupid and not opening my post hoping it would all go away!) I have very little disposable income, my husband's business is bankrupt and he is unemployed and I'm now looking into the possibility of either going bankrupt myself or selling endowments and offering final settlements. When all this is sorted and my husband hopefully finds a job should we then contact the company who took out the charging order and arrange repayments or do we just leave it and wait till we remortgage or sell the house. There is no equity in the house at the moment so I would hope no danger of reposession. |
| 7 L A T E S T R E P L I E S (Newest First) |
| RHB |
Posted - 16 September 2009 : 07:24:54
Plus if you went bankrupt your endowments would be seen as assets. |
| Reviva UK |
Posted - 15 September 2009 : 22:22:03
Hi
in Bankruptcy the contribution towards the debts is based solely on a percentage of disposable income. so that is where you would start for what br would cost.
with regard to "paying someone" to act for you. Most decent companies would work on a success fee based on a percentage of monies saved and would be need to be able to structure the solution to the ammount available.
in the first instance try the standard letters and see how you get on.
As I think I have said before it is the overall solution that is important rather than the individual settlement with each creditor
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
Real People ..... Real Debt Solutions |
| beermonster |
Posted - 15 September 2009 : 21:16:54
I am doing it myself as I can't afford to pay anyone. Someone on here gave me a link which had a letter template and how to work out how much to give each debtor. So for each debtor I need to give my income and expenditure and a list of other debtors showing they have a fair share of what money I have? Are you suggesting I offer less then go up to 35%? beginning to think might be too much hassle and should just go bankrupt But thought would be better to offer something at least before doing that. I know if I go bankrupt I have to make payments but surely it will be less than 35%? |
| Reviva UK |
Posted - 15 September 2009 : 19:44:40
There is a procedure to follow if you wish to pursue a settlement arrangement.
you will need to produce an I&E , a list of creditors and the pro rata payments in a debt management plan.
deoending upon your age and your particular situation you can then make appropriate offers.
If you are doing this yourself and go in at a starting offer of 35% it is likely that the creditor - or their agent - will advise you that they NEVER settle for less than &%, 85, 90% etc etc etc .
depending upon the household situation settlements of 30 - 35% are achievable.
Last month our negotiator wiped off over £185,000 of dept for a couple of clients so it is possible
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
Real People ..... Real Debt Solutions |
| beermonster |
Posted - 15 September 2009 : 19:16:08
Hi
Thanks for your replies. The charging order is with Lowell Portfolio Ltd. I was thinking of using the endowments to offer final settlements to my unsecured creditors as you suggested Reviva and then concentrating on the chrging order. We can manage fine with the mortgage etc and are not behind on it. I would probably be able to offer around 35% of the total debt which my sister, who is an accountant, said they would probably go for. Especially if I tell them our circumstances and say I'm thinking of going bankrupt. |
| Reviva UK |
Posted - 14 September 2009 : 21:14:35
Hi
I don't want to contradict RHB but I would suggest a different path.
Let me go through the options.
1. If you clear the "charging ordr debt" and then go bankrupt you will invariable have increased the equity in the house and therefore if you then go Br are much more likely to lose it. At the point of Br the Official receiver will own your share of the equity so that seems like a waste of money to me.
2. You could petition for bankruptcy not. At this point your endowment policy becomes the property of the official receiver. Again no intrinsic benefit for yourself.
3. Look at cashing in the endowment and try to come to a negotiated settlement with your creditors. If succesful this would avoid bankruptcy and allow you to focus on the second charge and mortgage.
Couple of questions which you need to understand before you move down any track.
If the unsecured debts can be eliminated can you manage with the mortgage?
which company has the second charge? many of these charges are happy to sit there until you sell or remortgage.
I would really suggest you get offline advice and go over all your options carefully to make sure you have all the information .
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
Real People ..... Real Debt Solutions |
| RHB |
Posted - 14 September 2009 : 20:39:32
I would contact whoever put the charging order on asap & see if you can pay the debt of via your endowments perhaps? Do you know how much it is for?
|
