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A Second charge on the home does it affect sale and credit rating |
I have an unpaid solicitor's bill due to divorce and can't pay it until I sell my home. I have been awarded no maintenance or child maintenance and have barely enough money to feed the children. They are charging me 2% a month on the debt of approx £63,000 and they are saying they will sue me for that amount or I can pay £14,000 straight away and they take a charge on my family home.
How does a second charge affect the sale of the house which is going on the market in a month and does it affect my credit rating. If they sue me will this affect my credit rating and for how long. At the moment I have a very good credit rating and want to keep it this way.
Because I now have very little income I am unable to borrow any money from a bank.
What is the best rout to take. If they sue me then I will pay 8% on the debt which is the court rate. How long will it take for them to get the case to court?
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Re: A Second charge on the home does it affect sale and ...
You need to take independent legal advice on this - if you have no money you may qualify for help from the Community Legal Service
http://www.communitylegaladvice.org.uk/
A charge on the property would secure the debt - so that your solicitor would be obliged to settle the debt before any further equity was passed on to you.
Accepting a voluntary charge on your property shouldn't affect your credit rating - but you might want to check with the credit ratings agencies www.experian.co.uk or www.equifax.co.uk.
If you are sued and receive a county court judgment this can have a serious effect on your credit file if it is not paid off within 28 days.
However experian and equifax can give more definitive answers on credit rating and a solicitor or legal advisor would be better placed to give an opinon on the likelihood of a court judgment being made against you and the fairness of the interest charges which are being added.
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