CCJ 6 years old - Charging Order remains, debt balance repayment option?

[DKEDS66]

Hi there, apologies as I am new to forums in general so hopefully I am doing this correctly.

Ok so to cut a very, very long story short, in April of 2008, a CCJ was awarded against me and this included a £32K Charging Order to cover a sum owed to RBS for a combination of a defaulted unsecured loan & unpaid overdraft.

The original debt with RBS was actually much, much less, somewhere in the region of £18K, but while I had my head in the sand back in 05/06, the debt rose exponentially to £32k with ridiculous charges / interest being added monthly.

Prior to the CCJ, I had already been paying off the debt directly to RBS at a rate initially in the region of £35 per week but this was raised to £50 per week after the CCJ was awarded. Incasso were dealing with this on behalf of RBS.

So...... 6 years later and where am I, well, having not missed one single payment, I have paid back somewhere in the region of £16K (in total).

Having read through like a million forums (seriously at least a million), I know that the CCJ will very shortly disappear from my credit file (woooo hoooo be nice to have a decent credit score again) but in reality, the debt balance remains.

So what's my question.... well it's more advice really. I know the CO remains in place (I think for 12 years, so 6 more years) so am guessing I have a couple of options:-

1) Carry on paying £50 per week for another 6 years (in essence this will clear off the debt and therefore the CO with it) OR
2) See if I can get RBS via Drydens Fairfax (no longer being managed by Incasso) to accept a one off full & final payment (am hoping maybe as little as £500 as I have been a good chap).

My problem is that I have been stuck with a very expensive 7% repayment mortgage for the past 6 years that I was unable to do anything about this because of knackered credit rating and Charge Order.

I just want to ideally re-mortgage as soon as I can after CCJ drops off my file (23rd of this month) as I have quite a big mortgage but although the CCJ will have disappeared and my credit score should zoom (without CCJ), I wont be able to do anything with the flippin CO still in place.

Any thoughts / advice would be really appreciated

cheers
Dave

[wales01man]

Re: CCJ 6 years old - Charging Order remains, debt balance repayment option?

Its likely the CO will stay on until the total debt is paid, If there are still thousands owing why should they remove the CO which is their guarantee that they will get the Money sooner or later

[ncf355]

Re: CCJ 6 years old - Charging Order remains, debt balance repayment option?

I'd agree with Wales, the 6 years may have passed since the CCJ but the CO will stay

[Amethyst]

Re: CCJ 6 years old - Charging Order remains, debt balance repayment option?

If the offer is good enough then it could be accepted, better than having it at £50 a week. It's worth asking.

Also the charging order won't necessarily barr you from a decent mortgage but you may need to have a larger LTV and use the remortgage to pay off the CO.

[FlamingParrot]

Re: CCJ 6 years old - Charging Order remains, debt balance repayment option?

So what's my question.... well it's more advice really. I know the CO remains in place (I think for 12 years, so 6 more years) so am guessing I have a couple of options:-

The CO remains in place until:

• it's paid off, either by lump sum or installments
• the property is sold or remortgaged

http://www.wragge.com/published_articles_3937.asp

In Mulhall, the defendant had guaranteed a company loan by the Bank. The company defaulted and the Bank demanded payment from the defendant under the guarantee. Judgment in default was obtained against her and a charging order in respect of the judgment was secured on her property. The Bank did nothing to enforce its security for 16 years, at which time the defendant applied to set the judgment and charging order aside on the basis of the Bank's delay in enforcement which meant that they had no continuing right under it by reason of the lapse of time. She argued that the charging order was statute barred under s20(1) Limitation Act 1980 which provides for a 12 year limitation period for any action to recover "any principal sum of money secured by a mortgage or other charge on property".

Refusing the defendant's appeal, the Court of Appeal held that S 20(1) does not apply either to the making of the charging order nor to any of the normal steps by way of enforcement of it. The charging order provides security for a judgment debt and judgment debts are, on the whole, outside the scope of the limitation legislation. A charging order gives the judgment creditor the rights of a secured creditor which can not be defeated by a claim to adverse possession.

Different time limits apply in relation to a charging order as opposed to a legal mortgage. With a charging order, the creditor already has a judgment.

The judgment itself can be found here: Yorkshire Bank Finance Ltd v Mulhall

An equitable charge is not extinguished after expiry of the limitation period in s. 20(1) of the Limitation Act 1980. Section 17 of that Act has no application,

2) See if I can get RBS via Drydens Fairfax (no longer being managed by Incasso) to accept a one off full & final payment (am hoping maybe as little as £500 as I have been a good chap).

You can try, but why would they agree when they have secured the debt on you property and can get the full amount when you remortgage or sell it? :noidea:

[strangewayofsavin]

Re: CCJ 6 years old - Charging Order remains, debt balance repayment option?

I refer to a post I wrote in 2008
"According to the woman at Experian, they cannot remove the entry only the Registry trust can, So I asked her, If I wrote to the Registry trust disputing the entry, would they have to remove the entry, she replied yes, until Abbey supplied the Proof of the debt. And if I disputed it through Experian, they would take the senario mentioned earler, Experian would treat the matter as my word against Abbeys, and until forced, the entry would remain albeit, with a 200 word complaint from me if I put it in writting.
So if you write to the Registry trust, the dispute will be taken notice of, and the issuer would have to act, to reinstate the entry, according to Experian". This also applies to staute barred entries