# interest on judgement?



## newlife (6 Feb 2012)

Hi,
 I have posted here already about going bankrupt in UK, but just want to check out first and clarify a few questions.
1- Does a judgement still incrue interest? Even if it is a registered judgement mortgage? 
2- What are the chances of my house being taken ( being forced to sell) if my house eventually came into profit again? Would a judge rule against me even if I had been paying a court order for a number of years?
Thanks in advance for any advice


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## Wipetheslate (7 Feb 2012)

I think it accrues 8% per year 
No sure about second question .


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## Time (7 Feb 2012)

If a court order was being complied with there would be little chance of a judge allowing a well charging order. There would have to be significant equity before a judge would even consider it.


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## newlife (7 Feb 2012)

Thanks Wipetheslate. So it still incrues interest?? Wow, I thought it was set if a judgement. Crazy. So even if I am paying back a small court order payment, it does not even cover the interest!
 So after 12 years what happens then?
And Time thanks for reply. So what your saying is exactly what I am wondering about. 
Say I paid another 10 years off my mortgage and then there was enough equity in the house to pay back a judgement, would a sale be forced on me, even if I had been paying repayments for all that time??


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## Time (7 Feb 2012)

Highly unlikely. Generally instalment orders fizzle out after a few years.


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## Time (7 Feb 2012)

> Thanks Wipetheslate. So it still incrues interest?? Wow, I thought it was set if a judgement. Crazy. So even if I am paying back a small court order payment, it does not even cover the interest!
> So after 12 years what happens then?


The judgement dies. Nothing further can happen. You can simply stop paying and there is nothing that they can do.


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## newlife (7 Feb 2012)

Thanks Time,
What do you mean by 'fizzle' out? How does that happen, if I have a monthly direct debit ?
Also, sorry to stress the point, just trying to get total clarity on my situation so as to help me decide what to do.
What you are saying is, ' if I pay court orders, if house becomes turns to anything worthwhile 
In next 12 years, I would not be forced to sell and then at 12 years the debt will be written off?'


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## Time (7 Feb 2012)

After 12 years the debt is written off. 

There would have to be serious equity to bother seeking a well charging order. Remember there has to be enough to pay everyone before the JM holder first. 

Instalment orders tend to get forgotten about after a few years. I know of a few cases where someone stopped paying after a few years and nothing happened. The debt died  12 years after the judgement.


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## ClaireM (7 Feb 2012)

Does a debt still die after 12 years if it is registered as a judgement mortgage? Does it not last as a charge on the property until it is discharged?

Eg if a judgement is obtained against someone and registered as a judgement mortgage, not discharged, person dies 20 years later and leaves house to children who want to sell it, the judgement mortgage would still be there and would have to be paid out of the proceeds?


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## Time (7 Feb 2012)

No. A JM is unenforceable after 12 years.


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## ClaireM (7 Feb 2012)

Time said:


> No. A JM is unenforceable after 12 years.




The creditor can't seek to enforce it does that mean the charge disappears or is it still a registered as a charge on the property?


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## Time (7 Feb 2012)

It can be removed by the land owner once 12 years are up.


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## ClaireM (7 Feb 2012)

Thanks


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## newlife (7 Feb 2012)

Time said:


> There would have to be serious equity to bother seeking a well charging order. Remember there has to be enough to pay everyone before the JM holder first.



Thanks again Time for your helpfull replies and once again apologies for my ignorance on the subject! But what exactly do you mean by serious equity?
In 10 years time say, let's imagine there is enough equity to pay off a judgement mortgage, would I be forced to sell? And who do you mean by 'everyone' ? I understand the mortgage would have to be covered first, who else? 
Thanks in advance for your time, help and patience!


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## Time (8 Feb 2012)

All charges on the property prior to the JM being lodged would need to be satisfied first before the JM holder will get a cent. Anyways these things are rarer than a rare thing when it comes to a family home. The main reason a JM exists is if you sell the house they get their money. It is not often they go to court looking to force a person out.


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