Increased Protection for Debtors from Charging Orders

Written by Becky on Tuesday 9 February 2010

Greater Protection Given to Those Who May Lose Their Homes

A recent consultation by The Ministry of Justice is considering setting a minimum amount of debt before a court can order the sale of a debtor’s home.

People who face losing their homes because of debts on credit cards or loans could get greater protection from charging orders if the amount is agreed.

Current Law allows a lender to force debtors, in extreme cases, to sell their homes if they fall behind on payments, this is known as a ‘charging order‘ against a person’s property.

Justice Minister Bridget Prentice Said:

‘We know that only a small proportion of charging orders result in the property being sold, so it’s rare for a debtor to lose their home because of things such as unpaid credit cards…But it’s important that the government consider whether there is a risk that the numbers will increase due to the current situation, and whether this could result in more people losing their homes because of relatively low levels of debt which they are unable to pay.’

The consultation which closes on 30th April 2010, asks whether a minimum level of consumer credit debt should be set in law before an order for sale can be issued.

Payplan

If you are worried about charging orders or falling behind on your monthly payments, contact Payplan today for free, confidential debt advice.

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Comments

One Response to “ Increased Protection for Debtors from Charging Orders ”

  1. bradley on February 9th, 2010 9:25 pm

    I have a charging order against my house for a credit card debt ,i have no chance of ever paying it off as they are still charging me 8 percent APR,My marrage has broken down and we are now forced to sell the family home .I think the card sharks should be held accountable for lending people like me too much money in the first place.

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