Interim charging order,

[Lordexmoor]

Hi I have a ccj on a couple who are due to sell there house due to the mortgage now being to expensive, the mortgage company has indicated that if it is not sold they
will consider court action , the ccj was to protect my money loaned to them, from the ccj I now have a interim charging order, 2 day after the charging order one of the couple was made bankrupt
the trustee now wants to take my money from me , I did use the civic national business Center, every thing took a very long time, question is although the court granted a ccj and then a interim order ,
has he the right to take my money, I am a 72 yeah old pensioner with terminal cancer ( Myloma) this is my life savings involved, I need to make sure the wife is ok when I am not around,
any help or guidance would be very much appreciated,

[atticus]

Bankruptcy is a collective remedy, designed to ensure that all creditors are treated equally and fairly. As a bankruptcy order has been made against one of your debtors the court will not allow you to get ahead of other creditors, and will therefore not make the charging order final.

You can, however, ask the court to make a final charging order in respect of the interest in the property of the debtor who has not been made bankrupt. This gives you a more limited level of protection.

You say that the trustee in bankruptcy wants to take money from you. Please explain in more detail. I am guessing that he is saying that you have received payments that put you in a better position than other creditors and are therefore a 'preference', but please confirm.

[JK2054]

I disagree with atticus here, if you had the interim charing order, then the full charging order then tehy were made bankrupt you would still be able to get your money and so he cant take anything because it was finalised first.

[atticus]

The point I made is that if there has been only an interim charging order, then if a bankruptcy order is made against the debtor before the hearing to consider whether the charging order is made final the interim charging order will be discharged. The OP has said that he has an interim charging order, but can no doubt clarify.

JK makes the fair point that if the charging order has been made final before the making of a bankruptcy order, then it will stand to secure the debt, notwithstanding the subsequent bankruptcy.

[JK2054]

oh wait nevermind then i dont disagree atticus is right. I thought where he said "2 day after the charging order one of the couple was made bankrupt" he had a final charging order, didnt realise it was still the interim

apologies atticus

[atticus]

Accepted.

[JK2054]

atticus is this the same charing order thread as the one with a hearing on 16th or are there 2?

[atticus]

This is the OP's only thread.

[JK2054]

Yes thank you for clarifying

[Lordexmoor]

Thank you all for the assorted responses, I will try to make it clearer, the couple who owe me the money we’re to remortgage in September, and pay back the loan but due to interest rate issues and one of the couple off work with heart issues, and could not afford to pay the mortgage, the loan company did say if the mortgage was not paid on time they would consider repossession, because of this I was advised to apply for a ccj to cover the £92 k owed just in case , I was also advised to apply for a charging order , the ccj was given 15 Dec 23 the interim was given 23 Apr 24, papers sent of to make it final, as far as I know the court looked at that 2 August, had no word from that as yet,
re the bankruptcy, one of the couple was declined bankrupt on the 24 Apr 24 one day after the interim, 12 week after the bankruptcy a new trustee has taken over, he sent me an email saying he did not think my ccj and interim order was valid, so he will oppose it , and use half of the amount I have the order for to go towards the bankruptcy, , I thought I had a legal charge in my favour for all of the money owed to me, are they able to over ride thr ccj and interim, ?

[atticus]

As I said in post 2 -

Bankruptcy is a collective remedy, designed to ensure that all creditors are treated equally and fairly. As a bankruptcy order has been made against one of your debtors the court will not allow you to get ahead of other creditors, and will therefore not make the charging order final.

You can, however, ask the court to make a final charging order in respect of the interest in the property of the debtor who has not been made bankrupt. This gives you a more limited level of protection.

To continue, if you wanted security, you really should have taken a charge when making the loan. For £92,000 not doing so was unwise.