|Charging order - sarah Gould 2019-03-01 19:53:02|
Need some advice on a charging order.
I obtained a ccj which is due to drop off my credit file in November this year.
I had been paying the ccj through attachment of earnings. I stopped paying 2 years ago due to I'll health and not being able to work.
An intermin charging order was granted. I have been onto the land registry and there is no full charging order it's still down as an interim.
The company who obtained the ccj and charging order have now sold on my debt. However the intermin charging order and the ccj are still in the old debt collectors name.
I am going to leave the ccj to drop off my file and the debt will be staue barred too.
My question is how to get the intermin charging order removed as the company who requested it no longer own the debt or will I be opening a can of worms.
I am not looking to sell my home but I will be looking to remortgage in a few years time.
Thanks for your help
|Re: Charging order - Jane 2019-03-03 17:05:58|
I am going to do some more investigation on this one. The debt will not become statute barred as the creditor obtained a county court judgment - although this falls off the credit record after 6 years, the fact that it has been granted means the debt is still live. If a creditor wishes to enforce this, they have to return to court to explain why they had not done so before but they had by going for a charging order which although interim still remains on the credit report.
I have not seen one that has been sold on before so will need to get further advice on this.
|[No Subject] - sarah Gould 2019-03-04 10:37:01|
|Thank you so much. It's such a worry and haven't a clue what is best to do. Thanks again for your help|
|Re: Charging order - Jane 2019-03-07 18:32:51|
|Am still waiting for a response but have not forgotten!|
|Re: Charging order - Jane 2019-03-12 18:59:33|
I contacted the specialist support unit at Shelter for advice on this and this was their response:
Where the debt has been purchased, we would assume there has been an assignment of rights in accordance with s.136 of the Law of Property Act 1925.
I have explored our internal legal resource Lexis Nexis for information on whether an assignment of rights, means the third party purchase can continue with the charging order process. Unfortunately, their response in relation to this issue is as follows:
'Transfer of judgment debt to a third party
We have been unable to find any specific authority on whether or not the benefit of the interim charging order can be transferred to a third party who acquires the judgment debt.'
Information on Lexis Nexis about assignment of rights goes on further to state:
If there has been a valid legal assignment of the cause of action, the assignor no longer has an interest in the action and cannot sue in his own name (Read and Bovis).
Accordingly, post-assignment, the assignee is entitled to bring proceedings in their own name (Marchant). The assignor does not have to be joined as a party (LPA 1925, s 136).'
This seems to suggest that the assignee should bring the charging order proceedings in their own name but again, this does not clarify the position where proceedings have already begun.
In general, where an assignee has taken over a claim and proceedings have already been issued, they would have to file for permission to amend the statement of case. In light of this, we believe that the assignee may be able to apply to request permission from the court to amend the details of the interim charge, however there is no authority to confirm this.
Your client could contact Land Registry to inform them of the situation and attempt to argue proceedings must be brought by the new creditor, but we cannot comment on the likelihood of this being successful.
Ultimately, even if the assignee cannot continue with the original charging order process, there is nothing to stop them issuing new proceedings and obtaining a charging order in their own name.
As a side note, you have not mentioned when the interim order was obtained. It is usually the case that if there are no objections raised after 28 days, there will be a hearing where the judge will decide whether to make the charging order final. It may be worth contacting the court to see if this has taken place.
As you can see the lines are blurred. Sorry I cannot be more precise. The CCJ cannot be reinstated though.