How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Thomas Your Own Question
Thomas
Thomas, Lawyer
Category: UK Law
Satisfied Customers: 7473
Experience:  BA (Hons), PgDip, Practising Solicitor
28732269
Type Your UK Law Question Here...
Thomas is online now
A new question is answered every 9 seconds

I have a joint morgage with my wife and have been issued with

Customer Question

I have a joint morgage with my wife and have been issued with a ccj for £135000 by HSBC can they force the sale of the house?
Submitted: 6 years ago.
Category: UK Law
Expert:  Thomas replied 6 years ago.

Hi,

 

That's a very large debt, what does it relate to?

 

In whose name is XXXXX XXXXX or does it relate to a debt in joint names?

 

Kind regards,

 

Tom

 

 

Customer: replied 6 years ago.

Hi, I was a director of a company and had a secured overdraft in my name only, the company was wound up in 2008, there is no equity in the house.

 

Expert:  Thomas replied 6 years ago.

Hi,

 

If the guarantee is only in your personal name then HSBC could apply for a charging order against the property in respect of your share; your wife's interest in the property is separate and protected and will remain so.

 

If they obtain a final charging order after having first applied for an interim charging order then they can apply for an order for sale. You will receive notice of the respective hearings of the applications for each order and are entitled make representations. You should see a solicitor specialising in property litigation for this.

 

If there is no equity in the property then you will have to make this argument at the hearing (if one occurs) for the order for sale by producing evidence. If there geuinely is no equity in the property then the Court is unlikely to make an order for sale since it does not discharge the debt in any way and puts you (and your family - who are also entitled to make representations) out of your family home. Orders for sale are considered a last resort by the Courts.

 

HSBC may well take the view that it is better to retain a charge over your house until such time as it recovers it's equity and then apply for an order for sale, so the situation (as I am sure you apprecitate) will not go away so you should consider engaging with HSBC and being open about the lack of value in the property. The reality is that the debt is very large and so a Court would be more likely to make an order for sale if there is equity there at a later date.


If this is useful please kindly click accept so that I may be rewarded for my time. It will e gratefully received and you will be free to ask follow up questions.

Kind regards,

 

Tom

Thomas and other UK Law Specialists are ready to help you
Customer: replied 6 years ago.
Could they make me bankrupt and if so would it be likely the o,r would try and sale the house?
Expert:  Thomas replied 6 years ago.

Thanks for your very kind accept.

 

Yes, the could apply (ie. petition) to have you made bankrupt if you cannot pay the amounts owed I am afraid.

 

The postiion with respect to the sale of the house is not very different in the case of bankrutcy, an order can still be applied for and the OR may very well do this if there is equity there.

 

If you took advice on the guarantee and were not informed of the extent of your liability then you may have a claim against the professional providing that advice.

 

I'm very sorry it could not be better news.

 

Kind regards,

 


Tom

Related UK Law Questions