In message , Ronald
Raygun writes
>Mike_B wrote:
>
>> In message <1YednUUx6b200HvanZ2dneKdnZydnZ2d@bt.com>, Tim
>> writes
>>>"Lord Turkey Cough" wrote
>>>> No point in offering him one as he doesn't want one...
>>>
>>>Then how would the borrower intend on paying off the
>>>loan that he's just defaulted on, before the court makes
>>>him bankrupt -- and the house (and other assets) are all
>>>sold off to pay his creditors (including the unsecured loan) ?
>>
>> Why would the court make someone bankrupt? Its none of their business
>> unless a creditor makes a petition.
>
>That's the whole point. The lender whose loan the borrower has
>defaulted on would only be able to stand a good chance of getting
>their money back by petitioning the court to make the borrower
>bankrupt. The option of charging orders to turn the unsecured
>debt into a secured one is *better* for everyone concerned
>because it avoids the need to go down that road.
>
With the average dividend on bankruptcy being just a few pennies in the
pound, its not a route they would likely wish to take anyway in most
cases, and indeed it never has been a route that has been a popular one.
The danger in a Charging Order lies in the potential enforcement of that
by an Order for Sale and while they are uncommon at the moment, a
charging order was uncommon 10 years ago so we clearly can see that
things change.
--
Mike_B |