Debt Questions forum. General questions on debt issues.

Moderators: TalbotWoods, JaneClack

By indeepdoodoo
#3415 Only just found this site - probably too late!

Wragge & Co (on behalf of Bradford & Bingley) were awarded a 40k
mortgage shortfall debt against me in Nov 2004, relating to a property
re-possessed in 1990.
I sent a budget sheet in within the week, showing I could only pay 130 per month.
(My home only has approx 25k equity if sold at full price & I have other debts totaling 30k)
But relatives clubbed together so I could offer a 10k one off lump payment.
They didn't respond, instead they applied for an interim charging order for
weds 2nd Feb.
After several phone calls chasing a reply to my offer, they finally declined it yesterday 27th Jan, by phone.
There is now so little time to sort anything out.
Can I postpone the court date?
Would consider Bankruptcy / IVA anything its just I don't want to be in negative equity with the interest charges increasing daily.

User avatar
By JaneClack
#3421 No, it's not too late but you need specific and not general advice so I would suggest you ring FCL/Payplan on 0800 716239. I am suggesting this number as it is urgent and they can turn things around quickly. Also try National Debt Line who have a specific leaflet on charging orders.

You have obviously been able to buy another property which is why Bradford and Bingley are able to take this action as they will have found this out from your credit file.

You should have been sent an interim charging order but it seems this has now expired and I do have to say that district judges very rarely overturn interim charging orders. Whne the debt is secured on the new property it could not be included in an IVA or bankruptcy.

Give them a ring quick
User avatar
By JaneClack
#3440 I should also add that this debt should be added to all your other debts and so you are really looking at £75K worth of debt.

This could have been overturned by something like an IVA before any final charging order is made. Once it is then I am afraid the debt will be secured on the property. You are talking about an interim charging order though so do keep trying.

The creditor was never going to accept £10K when they knew you had a property which is only going to increase in value. In bankruptcy if the debt was still unsecured (ie before charging order on property) and the house is jointly owned with a partner you could have written off all the debt for about £12.5K which would have been the money you would have needed to pay the OR for your interest in the property. If it is in your sole name it would have been the whole £25K.