If you've missed payments, they're more likely to make a charging order against you. If you have more than one creditor, the others might have agreed to let you pay back their debts by installments, instead of asking for a charging order.
You might be able to argue that you shouldn't have to grant one creditor a charging order if none of the others think it's necessary — especially if you owe the other creditors more money. You might be able to argue that other people who live with you would be severely affected if you had to sell your home. For example, think about the effect it might have on any children, older people or disabled people you live with.
If you have other creditors, you could ask them to object to a final charging order because it would be unfair on them. These are other people you owe money to but who don't have a clear way to get it back.
For example, unsecured creditors can't make you sell your house to pay them back. If a final charging order has been made, you might be able to apply to the court to have it set aside. This means the debt goes back to the judgment stage and your creditor will have to reapply to the court if they want to take further action. This can give you more time to repay your debt. You can only do this if you think the court didn't consider your circumstances properly.
You must make this application as soon as possible after the charging order is made final. Download the N court application form on GOV. It can be very difficult to get the charging order set aside. To get advice on what to do, including help to fill in the court form, contact your nearest CAB. You might be able to ask the judge to stop your creditor from forcing you to sell your property straight away. For example, you can ask for either:.
To get specialist help to put your arguments to the court and to ask for conditions to be attached to the charging order, contact your nearest CAB. If the charging order has conditions attached, you might be able to ask the court to change them if your financial circumstances change.
For example, the charging order may say you have to pay back your creditor in installments. You can ask the court to change the amount of the installments or the date the final installment has to be paid. Get more information about changing a court order for debt. To get advice about how to get a charging order changed, including help filling in the court form, contact your nearest Citizens Advice. They could start the court process to repossess your home before then.
If they try to evict you from your home before 20 September , get help from your nearest Citizens Advice. When your creditor has been granted a final charging order, they can apply for an order for sale. This is a court order that forces you to sell your property and use the money you make from the sale to pay your charging order debt.
The court will decide whether to make an order for sale or not. An order for sale is very serious and legally complicated. You should contact your nearest Citizens Advice as soon as possible if your creditor tries to get an order for sale against you. If you missed any payments, try to pay them before you have to go to court - this will stop your creditor getting an order for sale.
After they've got a charging order, your creditor might agree to wait for you to sell your home when you're ready. Other creditors might apply for an order for sale straight away. They can do this even if you owe them a fairly small amount of money compared to the value of your home. Whether or not a creditor is prepared to wait depends on how quickly they want their money back.
They might also take one or more of the following things into consideration:. If you can, take a legal representative with you, like a specialist adviser.
You might be able to get help with your legal costs. Everything occurs under Court supervision. Statutory safeguards prevent the property from selling for scraps, but it will likely sell at a substantial discount.
To ensure that the property brings a decent price at the auction, it is very important to market the property prior to the auction.
Work with a real estate attorney and a real estate agent who understand the partition process. Otherwise, you may end up with an undervalued property, or you may have no bidders at the auction. If you want to sell the property, you win by pressuring a voluntary sale or by obtaining a court order for sale.
If you want to STOP a sale, you win through a buyout or by convincing the other owners to halt the partition action. In my opinion, winning means preventing or ending the lawsuit altogether. Dragging the property through a full partition process can drain the equity from the property and drain the energy from its owners. That does not mean everyone will get everything they want.
It means everyone will compromise. And how do you convince your co-owners to compromise? You prove to them that a partition lawsuit is a lose-lose scenario. Show them through legal citations and financial calculations that fighting a court battle will leave everyone worse off. Make them choose the lesser of two evils.
A buyout or voluntary sale might be less than ideal. But it sure beats paying thousands in attorney fees while the property sits tied up in a court proceeding for months or even years. The law generally allows any co-owner to force a sale, and it is difficult or impossible to prevent that from happening. So, if your goal is to prevent the sale altogether, a buyout or a voluntary agreement may be your only option.
The short answer is no, a partition action cannot be stopped. This is difficult or impossible to overcome. As explained above, partition law allows the minority to rule by tyranny. Keep in mind, however, that forcing the sale does not equate to keeping the money. Just because you get an order for sale does not mean you will walk away with lots of money. Many people prefer to hire an attorney for a partition action, and rightly so. But there are also advantages to handling the partition yourself with appropriate legal forms, tools, and education.
To learn more about legal tools that might replace an expensive lawyer, submit your question below. Below are a few reasons you may NOT want to hire an attorney. And you may not realize that you are signing up this, because attorneys often charge on an hourly basis. Often, attorney fees can be paid from the proceeds when the property sells.
However, this assumes that the property will indeed sell at some point. If for any reason the sale does not occur, you may still be liable for the attorney fees incurred. By handling the partition action yourself, with appropriate guidance and legal tools, you can save significant attorney fees. A forced sale or partition action can take months on average. In some states, the partition could technically be completed faster, but due to inevitable complications and roadblocks, you should not expect to be done any sooner than 6 months.
When you hire an attorney, you give up control over the timeline of your partition. You cannot control how busy the attorney might be, or whether they have personal emergencies, which can extend the timeframe for completion.
Even after a partition lawsuit is filed, you should always be looking for a voluntary solution. When you handle the partition action yourself, you are very familiar with the details, rules, and financial factors at play. If you need financial advice and you live in the UK then you could contact the Money Advice service over the phone or via chat for impartial advice.
John has 22 years of experience in financial services. This spans across financial research, financial services As a qualified mortgage broker and underwriter , financial trading and sales at global investment banks. While working as a publishing research analyst, he covered European bank credit and advised institutional clients on investment strategies at both JP Morgan and Societe Generale.
It is usually about 70 percent of the property's fair market value. Forced sale value is the total proceeds of the assets' sale, which are then used to pay the owner's debts.
It represents the amount that an individual or business will receive if the sale or auction takes place right away. This value is a means to calculate an estimate of a company's financial position, if it were to face its worst circumstances.
It assumes that the assets will be sold as soon as possible. If time is not an issue, owners can hold out for a higher price, but quick sales typically result in low prices. This estimate, calculated by a professional appraiser, can help individuals or business owners decide how to proceed with their current situation.
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