Daniel Pidgley
Litigation Executive
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Date Published:11 Mar 2016 Last Updated:14 Apr 2021

Charging Orders: What are they? How do they benefit creditors?

Dispute Resolution

In this week’s enforcement blog, we will be exploring Charging Orders and the benefits of obtaining one against your debtor.

When can a creditor apply for a charging order?

You can only apply for a Charging Order if you have a County Court Judgment (CCJ) or other Court Order against your debtor.

What is a Charging Order?

The application for a Charging Order always has two stages. These are:

  1. An Interim Charging Order; and
  2. A Final Charging Order.

An Interim Charging Order is usually granted by the Court upon receipt.

Of the application and before the debtor has the chance to make any submissions. There will the be a short hearing to decide if a final charging order should be granted. If successful, at such time as your debtor sells its property/land, they must repay you from the proceeds of sale, you could also then consider apply for an order for sale (see next weeks blog).

Interim Charging Orders

An interim charging order is usually made automatically and a copy will be sent to your debtor. The Court will also provide you and your debtor with the date and time for the hearing which will take place to determine if a Final Charging Order will be granted.

The benefit of obtaining an Interim Charging Order is that it can be registered against the Land Registry title for the property/land straight away to avoid the property/land being sold before a Final Charging Order is granted by the Court.

Final Charging Orders

A Final Charging Order is granted at a Court hearing. If the Judge is satisfied that the Judgment debt remains due and payable and the debtor has a beneficial interest in the property in question, then a Final Charging Order will be granted and can be registered at the Land Registry in the same manner as the Interim Charging Order.

What are the benefits of a Charging Order?

The benefits of obtaining a Charging Order are:

  1. You have security over your debt;
  2. The property/land cannot be sold unless the debt has been paid;

To discuss your unpaid debts or enforcing a County Court Judgment, please call Daniel Pidgley on 01202 525333.