Shoosmiths 'Order of Sale' court date

[2cats]

Hi everyone,
This week my husband and I received a court date of 15th December for an order of sale of our house from Shoosmiths for a debt that was originally approx £6500, it is now around £8500. This is our family home and although 3 of our children have now left compulsory education, 1 is at university and the other 2 still live at home, we have 1 daughter who is 14 and goes to a local school.

Please give any advice on how we go about dealing with this as we feel like we are drowning

Thanks

[2cats]

Re: Shoosmiths 'Order of Sale' court date

Just phoned the courts as thought date was a bit close, and they are currently waiting for word from the judge as to whether he wants it re-scheduled. Even Shoosmiths had contacted them!!

[Kafka]

Re: Shoosmiths 'Order of Sale' court date

Hello and welcome

Can you provide a timeline of developments for this account please?

What was the original account?
Was the debt in one name?
Is the mortgage in joint names?

[2cats]

Re: Shoosmiths 'Order of Sale' court date

Hi Kafka,

The original account is still Moneybarn (formally Dunstans) and Shoosmiths are acting for them.
The debt is in joint names and so is the mortgage and house.

Any other information needed let me know

[Kafka]

Re: Shoosmiths 'Order of Sale' court date

When was the original agreement taken out?

Was it secured against the house as a second charge after the mortgage?

For an Order of Sale to be in process they must have secured a CCJ. When was that and what were the terms for settlement ordered by that court?

[2cats]

Re: Shoosmiths 'Order of Sale' court date

the original agreement was for a car lease in 2008, my husband lost his job and we had to return the car and they got a final charging order on the house in 2010. The terms were that when/if we sell the house they get their money. We have been contacted a number of times and try to make payments when my husband is working (not as much as we would like).

[Kafka]

Re: Shoosmiths 'Order of Sale' court date

OK, so the CO has sat there since 2010 and the judgment must have been 'forthwith', where its granted but without any stipulation to make regular payments. Is that correct?

Why are they pushing for an Order of Sale now?
If you didn't have a specific repayment arrangement you won't have been able to default on it, and Orders for Sale of ten arise if an agreement has not been kept.
I'm trying to work out what grounds they would have to ask a court for an Order of Sale, as they are unusual where they are only a second charge on the property.

Can you also comment on equity? If you sold the house would there be sufficient to pay off both the mortgage and the CO? The mortgage would get paid first as the first charge on the house.

[Kafka]

Re: Shoosmiths 'Order of Sale' court date

You haven't talked about the mortgage. Is this in order or are there arrears there?

[2cats]

Re: Shoosmiths 'Order of Sale' court date

You haven't talked about the mortgage. Is this in order or are there arrears there?

Mortgage is up to date and there would be sufficient equity in the house if it were sold and enough to give us a small sum too

[FlamingParrot]

Re: Shoosmiths 'Order of Sale' court date

This week my husband and I received a court date of 15th December for an order of sale of our house from Shoosmiths for a debt that was originally approx £6500, it is now around £8500. This is our family home and although 3 of our children have now left compulsory education, 1 is at university and the other 2 still live at home, we have 1 daughter who is 14 and goes to a local school.

I posted on another thread where an order for sale application had been received. You may want to look at it here: http://www.legalbeagles.info/forums/...169#post496169. Although your circumstances are slightly different, the basic principles of it being a family home where at least one minor child lives, still apply. :thumb:

In that case, no payments had been made towards the CCJ that was secured on the property. Orders for sale are seldom granted by the courts for consumer credit debts of this size, however, creditors apply for them to force people to make payments rather than having to wait till the property is sold.

[FlamingParrot]

Re: Shoosmiths 'Order of Sale' court date

the original agreement was for a car lease in 2008, my husband lost his job and we had to return the car and they got a final charging order on the house in 2010. The terms were that when/if we sell the house they get their money. We have been contacted a number of times and try to make payments when my husband is working (not as much as we would like).

A charging order secures the debt on your property so that the creditor gets paid from the proceeds of the sale, however, it's not a substitute for repayments. You'd still be expected to make regular monthly payments towards the CCJ that was secured on the property. When you get a CCJ you'd either get a forthwith order (the whole amount payable immediately) or an order to pay a certain amount every month. When the court makes a forthwith order, it is possible to apply for a redetermination of the order or a variation later on. There has to be a monthly installment in place at a level that can be sustained. This is determined via an income and expenditure form. Some people with CCJs secured on charging orders pay just £1/month but they have agreed this with the court after showing it's all they can afford.

You will have to make an installment offer to the court backed with an income and expenditure form to support the offer and explain why no payments have been made, for example, due to unemployment, ill health, if employed or self-employed, lack of disposable income, etc.