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F E Smith
F E Smith, Advocate
Category: Law
Satisfied Customers: 10855
Experience:  I have been practising for 30 years.
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A charging order was placed on our property, but the debt

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hi, a charging order was placed on our property, but the debt was included in my bankruptcy. I need to get this removed,.Can you advise please
Assistant: Where are you located? It matters because laws vary by location.
Customer: portsmouth
Assistant: Has anything been filed or reported?
Customer: an iterim order was made
Assistant: Anything else you want the solicitor to know before I connect you?
Customer: not at this moment

I’m sorry to tell you that even if it was included in your bankruptcy petition, once there is a charge against the property, bankruptcy does not remove the charge which remains in place.

Although you may not owe the money, they will want a chunk of money to remove the charge and that amount of money will be the amount of the debt.

I’m afraid the debts secured by a legal charge should not have been included in the bankruptcy and therefore, it’s of no effect. Sorry, I know it’s not the answer you wanted.

Can I clarify anything else for you?

I’m happy to answer any specific points arising from this.

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If you still need any point clarifying, I will still reply because the thread does not close.

Best wishes.

FES.

Customer: replied 6 months ago.
it is only an interim charge. this was made against me only, and not my partner. the judge stated that she cannot be affected in any way

If it’s an interim charge against your equitable (financial) share what you have been told by the judge is absolutely correct, will not affect your partner share. Even if the creditor applies to court to sell the house, they cannot touch her half of the property (or whatever proportion she owns) UNLESS the property was put into joint names within the last 5 years except in the case if it was purchased within the last five years. You can’t transfer the property into joint names or someone else’s name so that it escapes creditors.

Assuming that’s not the case, the only time they would get an order for sale is if there was a fantastic amount of equity in the property. If arguments sake the house was worth £1 million with no mortgage it would be unfair to you to sit on such an asset while your creditors go begging.

The interim charging order as provisional and you would have to object to the creditors application to make the order final on the basis that it was included in your bankruptcy. It depends whether that inclusion was before the interim order or after.

There is plenty of case law on this and here is an article on exactly this subject: https://www.lawgazette.co.uk/law/charging-orders-and-their-impact-on-creditors-and-debtors/53640.article

So you can see, it depends on a whole load of different circumstances as to whether it will be made final or not.

F E Smith and 2 other Law Specialists are ready to help you
Customer: replied 6 months ago.
the issue is that we have split up and i have agreed to give up my claim on the property.There is little or no equity in property