![]() It means that if you sell your home or obtain a remortgage on it before you have cleared your debt to the creditor, then all of the profit you obtain will be paid directly towards your debt. While this may seem troubling, it’s important to keep in mind that a charging order does not always mean that you will lose your home. We’ve already mentioned that this action turns an unsecured debt into a secured debt but what does it secure this debt against? Well yes, it secures it against your home. ![]() It’s an action that basically turns unsecured debt into secured debt. This is something that only applies to court action that has been pursued in England and Wales. Secondly, the creditor can also pursue what is called a ‘ charging order’ against you if you have a CCJ.įor all CCJs that have been issued after the 1st of October 2012, creditors have the right to get a charging order against you even if you’ve been up to date on your payments.įor CCJs issued before that date, creditors can only obtain a charging order against you if you have missed a payment towards your CCJ or if you’ve failed to pay the lump sum amount immediately if it was ordered by the court. Bailiffs are individuals that have the legal right to seize items on your property and sell them in order to pay for the debt you owe. If you fail to make payments towards your CCJ, then this can have extremely severe consequences.įirstly, bailiffs can be sent to your residence if you fail to make payments towards your CCJ. This can be when a creditor decides to get a Country Court Judgment (CCJ) against you.Ī CCJ will then entail a detailed repayment plan for you which you will definitely need to stick to. If you fail to start paying back your debt, your creditor then has the right to pursue court action against you. However, once you start falling behind, according to guidelines authorised and regulated by the Financial Conduct Authority, your creditor has the right to contact you and request you to get back on track and start paying off the money you owe. This means that if you fall behind on your payments, then your creditor has no right to seize your home. Debt on your credit card is, obviously, not secured against your home. However, there are definitely some things you need to keep in mind with credit cards and credit card companies. So, My House is Completely Safe if I have Credit Card Debt? Thus, if you start falling behind on your payments towards the outstanding balance on your credit card account, then your credit card company does not have the right to take away any of your assets to pay off your debt, especially not your house. This is usually a last resort for most creditors and only occurs if they’ve completely exhausted every other avenue of making you pay back the money you owe.Īs you can see, credit cards are one of the prime examples of unsecured debt. They can, however, take court action against you and try to get you to pay the money you owe that way. If you start falling behind on your payments, your creditors have no right to seize any of your assets. Unsecured debts are ones in which no form of assets are included in the form of ‘security’ for your creditors. ![]() Thus, in all of these examples, the creditor has some form of ‘security’ to fall back on in case you are unable to pay back the money you owe.
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