Hi, My mother a pensioner obtained a loan from a UK bank for £12000 this was unsecured lending for my half sisters benefit. The loan payments were not met due to other debts tha were accrued over the same period. The bank went to court apparantly and obtained a court order for future payments which was £90 per month. My mother says she never knew about the court order and had in the mean time handed her debt over to a debt management company that contiued to pay the original monthly payment of £46 on the loan. As my mother had not adhered to the court order for £90 per month she is now obviously in arrears and the bank is seekin a CHARGE on the property. Will my mother lose her house and be made homless? My mother does have enough monthly income to meet the payments. Any advice would be appreciated. Thanks

Hi --- An initial charge order does not give the creditor a right to sell the property, it simply lets the court register the charge against the title documents, so if or when the house is sold voluntarily the debt is cleared from the sale proceeds.

If the monthly payments that a court orders are subsequently not paid, then the creditor could return to the court and ask them to force the sale of the property.......but your Mum will be given every opportunity to pay or object to any decision before this situation would be allowed.

Any payments she agrees to make should be easily affordable and paid on time to stop the charge order being enforced. In a way a charge order is like making an unsecured debt into a secured loan against your home.