Your views and questions.

Moderators: TalbotWoods, JaneClack

By DaZ
#255743 I haven't been on here for a long time, as you can probably see from the ticker below!

Unfortunately I'm here for advice as opposed to happy reunions! :(

I've been living with my girlfriend for a year now and lost my job in October. She had some debt from a previous relationship which we've lumped into joint outgoings and have managed to scrape by paying them until now.

As it stands, there's a loan for approx £9k, and cards totalling £6k. All of these are in her name along with a mortgage, currently at interest only, on a property with approximately £10k equity.

With todays market we don't want to lose the house but especially as it holds significant sentimental value.

Her wages are covering the essentials, including the mortgage but there's no room left for the unsecured debt.

We are looking at a DMP until I can find more permanent work (joining the RAF in about 6 months) but are worried how charging orders work, how quickly they can be applied and if this is an instant forcing of house sale or would that only be if we didn't make payments on the newly 'secured' charging order loan?

Thanks for any help, a much older than that picture Daz!
By nigpet
#255753 To start with the end bit, charging orders are not usually turned into forced sales, in fact I haven't seen any posts here saying they have (now someone will prove me wrong!!). When I had one, this was one of the things the judge was clear on, as well as the DCA. They want to go secured as they can recover the money this way in extreme circumstances but normally like to load interest & charges so they can "claim" it back when the house is sold. Your post doesn't say whether you are in arrears yet, if not then time is on your side if you have a job lined up, the CO process takes a few months & you might be able to delay it & sweet talk a judge into declining a request if you know you have extra income in the nearish term. It also depends on how much equity you have relative to the size of the security being requested, being interest only helps in this case as you are relying on an increasing property value to give more "security", if this makes sense, & upwards isn't the way property values are heading!
I would talk to payplan or CCCS soon about your options, they are the experts in the field.
By DaZ
#255763 Thanks for your reply mate.

We're hoping that we'll be well back onto the road to stability within 3-6 months so even a DMP would only be a temporary measure.

Even pulling in £1000 extra a month, i.e myself getting a job would be more than enough for us to live comfortably but as it stands things are fairly desperate currently.

There's no arrears as of yet, but will ring the CCCS tomorrow and report back, thanks again :)
User avatar
By DuffNCustard
#255843 Your priority debt is the mortgage - I'd sacrifice the unsecured debt and only pay them a pro-rata amount. A DMP run by either Payplan or the CCCs would 'shelter you'

a charging order is only a B if you want to sell your house soon. Creditors have to get a CCJ first - so doing a DMP would be a 'good thing' - checks the right boxes.

Your a long long way from a CCJ
By DaZ
#255863 Thanks Duff, we intend to continue paying the mortgage and all the priorities. The unsecured stuff is what's tipping us over the edge currently.

In good news I passed the recruiting exam for the RAF today so will definitely be in within the next 6 months, which leads me onto my next question.

Say we take on a DMP with the intention of breaking free of it in 6 months and resuming full payments, is this an option or is it a case of once you're in a DMP you're in until completion or BR?

Thanks again guys and gals