Charging Order

[CYNthesys]

Just noticed the thread "lost to Cabot this morning"

If Im reading this right it says that interest is frozen when a charging order is made.

The circumstances surrounding a charging order in my case appears to be a bit dodgy, can anyone advise please?

An account was personally guaranteed by my husband and myself and bankruptcy was threatened. I was told the alternative was to agree to Judgement by consent, however my husband didnt have capacity to give informed consent to anything. The solicitor I was using said a consent order would be best and interest would be frozen. As my husband lacked capacity and hadnt made an enduring power of attorney he said that I should sign on his behalf as as his next friend??????

I did as I was advised.

It must have been 4 or 5 years later I learnt that shortly after obtaining the order the chargee made a successfull ex parte application for interest to continue to accrue at 8%

Any comments please?

[Guest]

Re: Charging Order

HI

I think the thread you mention concernes a CCA debt.
Debts under £5000 or that are covered by the CCA do not incur post judgement interest.

Peter

[CYNthesys]

Re: Charging Order

No, it wasnt a CCA debt

It was a business debt with our main supplier that was personally guaranteed.

The consent order was in the region of £40,000. This went on to becoming a charging order, but unknown to me an ex parte application was made for interest to run from the date of judgment.

Around £23,000 was repaid from proceeds of sale of the commercial property, but with the application of interest the debt had increased to in excess of £60,000, which left a shortfall of £37,000, with interst continuing to run on the shortfall.

[Guest]

Re: Charging Order

No, it wasnt a CCA debt

It was a business debt with our main supplier that was personally guaranteed.

The consent order was in the region of £40,000. This went on to becoming a charging order, but unknown to me an ex parte application was made for interest to run from the date of judgment.

Around £23,000 was repaid from proceeds of sale of the commercial property, but with the application of interest the debt had increased to in excess of £60,000, which left a shortfall of £37,000, with interst continuing to run on the shortfall.

The thread you refered to in your first post "Lost to Cabot" was i believe a CCA debt and therefore not subject to post judgement interest, unlike yours, unfortunately.

Peter

[charitynjw]

Re: Charging Order

Found these for you

http://www.justice.gov.uk/courts/pro...part70#IDATPA2

http://origin-www.legislation.gov.uk...article/2/made

[Guest]

Re: Charging Order

Hi
Funnily enough, and as a point of interest the fact is that the act does say that interest can be chraged;
Section 130 says that post judgement interet can be charged but only after a notice has been served.
Unfortunately the notice cannot be served untill one month after the judgement and the act also says that no interest can be charged in the interim.

THe problem is made worse because the regualtions governing consumer debts says that all sums due must be included in their liquidated state. it must be a deffinate judjment sum, so a formula for a future interest payment is not possible. The creditor would have to sue sepperately to reclaim it at a later date, and then section 37 of the CPR would prevent them takeing action under the same C of A.

Well I thought it was interesting.
Peter

[labman]

Re: Charging Order

Hi
Fummily enough, and as a point of interest the fact is that the act does say that interest can be chraged;
Section 130 says that post judgement interet can be charged but only after a notice has been served.
Unfortunately the notice cannot be served untill one month after the judgement and the act also says that no interest can be charged in the interim.

THe problem is made worse because the regualtions governing consumer debts says that all sums due must ne included in there liquidated state. it must be a deffinate judjment sum, so a formula for a future interest payment is not possible. The creditor would have to sue sepperately to reclaim it at a later date, and then section 37 of the CPR would prevent them takeing action under the same C of A.

Well I thought it was interesting.
Peter

So do I! Too tired to look into it tonight though, so will look into it tomorrow.