hi, we are currently getting divorced and i have moved out of the marital home. she is still there with the 2 kids. In a few weeks there will be a charging order going on the property from one of my creditors from my debt in my name. if it does go on can this effect things for her if she wants to take on the mortgage in her name and/or try to buy me out? is it common for a creditor to force sale? I could just about pay off the creditor but it would mean me using all my life savings! any thoughts? thanks
The charging order will be registered on the property and will be your responsibility. Whilst this remains you cannot sign away your interest in the property as you will not have power over the portion of the property that is Charged.
The Charge will have an effect on your ex''s ability to obtain a mortgage. The loan to value ratio will be altered for a start.
hi, thanks. what does concern me is a letter she has recived from my creditor which states;
"...The charging order would remain registered against the property until such a time the debt is cleared in full. We (the creditor) will force you to sell the property and would look to recover the debt if there was any equity following completion of sale from your ex-husbands share only."
So, even though they have written to me to say there will be no force of sale on the house, it sounds like they can force sale if I get equity?
That''s over simplifying it somewhat. If the Charge is registered it cannot be removed easily. Even if you were to sign away you beneficial interest in the property, this could be challenged at a later date. The court can make an order dividing the finances but all assets and liabilities will be taken into account which will include the Charge.
This is very interesting, do I take it that when the trustee in my husbands bankruptcy offered to sell me what had then become his (the trustee) interest in the property, he didn''t in fact have the right to sell it to me because the creditors with the charging orders had first dibs anyway? I must confess that I do feel something was very wrong with that process and needs looking into. One thing that strikes me now is that the official receiver and myself used the same solicitor, I had to send a cheque for £211, £1 to buy husbands beneficial interest, and £210 legal fees. I now realise that was quite possibly a conflict of interest.
Not happy at all!