What does a charge against your property mean?

What does a charge against your property mean?

A charging order secures a debt you have with a creditor against your property. This means if you sell or remortgage your home before the debt is cleared the charging order will be paid off from the proceeds. A creditor can only get a charging order if they already have a County Court judgment (CCJ) against you.

Can a creditor get a charging order for a property?

This is called a ‘charging order’. If you own your property jointly with someone else but the debt is only in your name, the creditor can only get a charging order for your share of the property – this is known as your ‘interest’. A charging order is very serious – you could lose your home if you don’t pay back what you owe.

What happens if you have debt against your property?

Normally debt goes against the person in debt, however, if large amounts of debt is built up then your property may be at risk. This means if you can not pay the debt, your home can be repossessed and sold to repay the debt.

Who is liable for a debt secured on a property?

The person whose debt was secured on the property is liable for the debt secured on the property, it is secured on their share of the equity in the property. We suggest speaking to a solicitor dealing with the sale of the house about how the funds should be distributed to each of you after the secured debts are paid.

Can a creditor apply to force the sale of your home?

If your CCJ was date 1 October 2012 or later, an instalment order which is up to date also prevents the creditor applying to force the sale of your home. For the second stage of the charging order process, if you’ve not made any written objections, a court officer or sometimes a District Judge will decide whether to make a final charging order.

Can a business debt be charged against property?

Business debts may also be charged against the property, although this is quite unusual. Either way, the formal undertakings described above are likely to be required when you agree with your former spouse as to who has responsibility for the payment of the secured loans.

Who is responsible for ex husband’s or ex wife’s debts?

Ex-spouse Debts : Whether you are responsible for your ex-husband’s or ex-wife’s debts depends on the circumstances surrounding the issue, your state law and perhaps most importantly, who signed the credit contract. For instance, if your name is still on the credit contract then,…

This is called a ‘charging order’. If you own your property jointly with someone else but the debt is only in your name, the creditor can only get a charging order for your share of the property – this is known as your ‘interest’. A charging order is very serious – you could lose your home if you don’t pay back what you owe.

Why is my ex husband not paying my car debt?

The ex-husband claims that the debt is not his because his ex-wife got the car and the payment in the divorce. The collector says it is the ex-husband’s responsibility and will pursue legal action if he does not pay up.