Charging Orders can turn the tables on your debtor, and this week, our blog will explore the numerous advantages of acquiring one.
When Is A Creditor Able To Get A Charging Order?
As a creditor, you may only file for a Charging Order if you have a Court Order or a CCJ (County Court Judgment).
Charging Orders: What Are They?
Charging Orders are carried out as two different stages when creditors file for them.
The first step involves what is referred to as an Interim Charging Order. The following step after, the creditor is granted through the Court, something known as a Final Charging Order.
A short hearing is usually conducted before a debtor can make their own submissions of evidence. This hearing is established to consider whether a Final Charging Order should affirmatively get granted. If the Court okays the order, the debtor must repay the money he or she owes you in full at the time of selling his or her property and/or land.
How Do Interim Charging Orders Work?
This is paperwork that is automatically filed and sent directly to your debtor. You and your debtor will both receive an official date and time for the hearing that will ultimately establish whether a Final Charging Order is necessary.
An Interim Charging Order can work in your favor to protect you against the sale of land or property assets by the debtor before a Final Charging Order is granted by the Courts.
All Final Charging Orders are required to go through an official Court hearing. A Judge will ultimately decide whether the outstanding debt is reasonable and is payable to the creditor. If so, a Final Charging Order is granted officially and will need registration at the Land Registry.
What Is The Advantage Of A Charging Order?
A Charging Order offers you plenty of security as the creditor, and neither property nor land are able to get sold by the debtor unless they pay you what you’re owed first. This offers potential protection against debtors walking away from paying their dues.