Main Links
Debt Solutions
AdditionalPreventing a Charging Order on Property
What is a charging order?
- If a creditor has a County Court Judgement (CCJ) against you ordering that you to repay a debt, creditors can apply to the court for a charging order to enforce the judgment if you do not pay.
- A charging order gives the creditor security for the debt; in other words, they are “securing” an “unsecured” debt against your property, similar to having another mortage on your house or land.
- There must be a hearing in the county court before a charging order can be made and there are several arguments that can be used to try to stop an order being made.
In general it is notoriously difficult to prevent a charging order being registered against the property.
However, in some cases charging orders can be prevented.
If a charging order is not prevented, it is possible to ask the courts to attached terms to the charging order, such as preventing the creditor from forcing sale of the property.
Here is an example of how an associate company of Debt-Advice-UK managed to prevent a charge being placed against a client’s property providing that they pay £1.00 per month to the creditor.
” General Form of Judgement or Order
Derbyshire Home Loans V XXX
Click to Enlarge
Upon reading a letter from the claimant and hearing the 2nd Defendant in person
IT IS ORDERED THAT
application for an instalment order is refused but enforcement of the judgement except by way of application for a charging order shall be stayed as long as Defendants pay £1.00 per calendar month”
