Questions and Info relating to Property Issues inc, Charging Orders and Repossession

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Byroyston
#194095 This is just a random thought I had today.

As I have mentioned previously in other posts, my wife and I are in our 60's, our plans have always been to eventually release some equity from our home to give us some financial help when we are older.

My query is, should we at some stage be unlucky enough to have a charging order put on the house, what would my options be then?

It's a worrying thought because without that equity our monetary future would be very bleak.
Byred24
#194096 Would it not be an option to do it now and put the money into a high interest account until the day comes when you need it.

We were going to do the same a few years ago but NR beat us to it. Hindsight is a wonderful thing.
Byroyston
#194099
red24 wrote:Would it not be an option to do it now and put the money into a high interest account until the day comes when you need it.

We were going to do the same a few years ago but NR beat us to it. Hindsight is a wonderful thing.


As we're in a DMP wouldn't full disclosure of a lump sum be required? I had given that idea a thought but I was wary of falling foul of my DMP should it come to light.
Byred24
#194100 Wouldn't like to be responsible for giving you incorrect information on that one.

We sold our property last year, whilst on a DMP, paid off 1st/2nd mortgage and a CO and after renting/moving costs had some equity left.
Payplan are aware of this and our repayments have remained the same, our situation a year on is unfortunately just as dire as it was then so the equity that we did try to save has all gone, ill health of OH, no 2nd salary for a year, I could go on!

I think unless you were in a position to pay off or do F & F with the equity its not worth just making bigger payments.
I don't think Payplan ever asks if you have savings at the beginning of a DMP and its not a legal and binding contract.

I am not saying that you have to be deceitful either, but unless the payments change dramatically the creditors wouldn't have a problem.........please don't quote me, only my thoughts!
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ByYogi Bear
#194102 You need to be a little bit careful here, I think. If for instance you wanted to raise money from an equity release to replace something like a broken-down central heating system, then I don't see that would be incompatible with remaining on a DMP.

But if on the other hand you do it and stash the money away in a savings account, then the danger is that if any of the creditors took Court action it would come to light when you made a payment offer: on the response form you have to put what the balances are in all your bank and savings accounts. :(
Byred24
#194107
Yogi Bear wrote: if any of the creditors took Court action it would come to light when you made a payment offer: on the response form you have to put what the balances are in all your bank and savings accounts. :(


Yes Yogi, fair comment, never been in that situation as to completing court forms and having savings, like I say, just my thoughts.

Payplan were fine with the sale, the same repayments etc and as it turned out with us a year later we now actually have a negative balance to offer creditors but have kept it the same as it was. Payplan are in favour of this also!
Byroyston
#194149
Yogi Bear wrote:You need to be a little bit careful here, I think. If for instance you wanted to raise money from an equity release to replace something like a broken-down central heating system, then I don't see that would be incompatible with remaining on a DMP.

But if on the other hand you do it and stash the money away in a savings account, then the danger is that if any of the creditors took Court action it would come to light when you made a payment offer: on the response form you have to put what the balances are in all your bank and savings accounts. :(



This is what my thoughts were as well Yogi.

I try to stay positive and would like to think that we won't be in the position of having a charging order on the house at some time in the future. That being said, I'm also not going to ignore the possibility. I suppose I'll have to wait and see how things unfold like others. We've put ourselves in this position so we'll have to live with it.
Byroyston
#194223
nomlas wrote:royston - Are you both on a DMP?


Yes, we are. My wife owes a lot less than I do, but we also have a joint debt. If it hadn't of been for that particular debt I would have been able to do a DMP on my own.
Bynomlas
#194225 I was just thinking if you could transfer the house over to one of you, but as your both on a DMP dont think it would work.
Byroyston
#194298 Thanks for all the advice.

I do have another query along similar lines.

If in future years we wanted to go for equity release which we would be eligible to do given our ages, would our credit rating be a factor to the company we approached?

I'm looking not so much at the fact that we will need the money, which we would, but more in regard to being able to clear off the remainder of our debts with that money. We'd be left with no savings, but given that my earning power will diminsh over the years, it would at least leave us debt free. Obviously this scenario would be dependant of having avoided a charging order at any time.

It's not something I would want to do at this time because the longer you wait the more equity is available to be released.

I don't know if anyone has any information, but it would be appreciated.
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