Topic: Joint mortgage,

[unluckyboy]

Hi, I have a lot of credit card debt, I have been paying a token payment for some time now but some of them are getting more and more threatening, If they take me to court have they got any claim on our house we have a joint mortgage and the credit cards are in my name only.    Any help much appreciated, Regards.

[gordonblair81]

Hi Unluckyboy
 
It really depends on how far the credit card companuies have taken there collection,  eg have you been issued with any court docuemtns ccj, decree, charge for payment etc
 
The companies could pursue bankruptcy which would affect the house (if equity is available) however bankruptcy for a creditor is not something they can do overnight this would take months to get to this stage.
 
My advice would be to contact an insolvency company with an idea of possibly looking into an IVA in england and a trust deed in Scotland.
 

Gordon Blair

 

[Sovereign]

Hello Unluckyboy,
 
Whether a property is jointly owned or not will not prevent a creditor applying for a 'charging order' against that property if they feel that this is the only way that they can recover their debt. Prior to that occuring, the creditor would have to obtain a County Court Judgement if you are in England and Wales. There are many ways that you can prevent this happening and I would urge you to consider debt solutions as opposed to borrowing more money. The latter will doubtless be expensive with high interest rates being charged etc. The former could be interest free and will result in a monthly payment that you can afford.
 
Best wishes.
 
Steve

[reporipoff]

Hi unluckyboy,
 
credit companies can legally put a charge on the property and happily do so. Some are unscrupulous and do this too willingly cos they know the rules and know that most people dont. Debt is always best confronted head on and talking to people on here is a good start.
 
I believe an IVA only covers unsecured debt and I would also suggest you look into help in setting up a debt management plan and/or IVA
 
 

[Steven Jackson]

If you are a home owner and have unsecured debts, in theory these creditors have no claim on your property. However I believe that more and more creditors (especially credit card companies) are seeking to secure their debts using charging orders. This is because if you have problems repaying, the creditors start to worry that they are going to lose out if you press ahead with an IVA or even bankrutpcy.
 
As Sovereign says, a creditor can not apply for a charging unless they have first issued a count court judgement (CCJ) which has hen not been paid. As such, if you receive a CCJ admission form it is vital to properly complete this with a suggest monthly repayment amount that you can afford.
 
It is also important to add that even if you do receive a charging order, it is extremely unlikely that the creditor will be able to force you to sell your house. The court will generally not allow that. However, the creditor is allowed to add statutory interst of 8% a year so it is always best to try and get the debt repaid as soon as possible.

[Jack00]

Credit companies can legally put a charge on the property . I believe that more and more creditors (especially credit card companies) are seeking to secure their debts using charging orders. This is because if you have problems repaying, the creditors start to worry that they are going to lose out if you press ahead with an IVA or even bankrutpcy. Proceed legally.

[Steven Jackson]

But only if they get a CCJ in place first Jack00 and then there has to be non payment of the CCJ for the charging order to be granted. As such, the key to preventing a charging order is get a sensible debt management solution (DMP or IVA) in place which will go a long way to preventing this.

[JennyMacM]

Hi guys,
does anybody know if they can put a charge on the property that is located abroad (an other EU country)?
What about different types of debts: mortgage shortfall, credit cards, unsecured loan?
What do you think, from what amount up a bank or a mortgage company would go through trouble getting a foreign property charged on these types of debts?
Thanks a mil
Jenny

[Steven Jackson]

Hello Jenny
 
I think it would be unlikely that a uk creditor would go to the bother of trying to put a charge on a property owned outside of the UK simply because it is a totally unknown area to most and therefore would cost far more money for their legal teams to investgate and pursue.
 
If you are talking about debts in the UK totalling many thousands, then perhaps the cost would be worth the potential reward. However, i think this would be extremely unlikely unless the debts were substantial and there was clear evidence of extreme value in a property owned overseas.

[JennyMacM]

Thanks Steven.

[Steven Jackson]

No problem at all Jenny. Hope the info has been of some help