Charging order is the one of the form enforcing court order which let to make judgment debtors to give money back. Under the charging order court “freeze” procedure of selling or realizing debtors property. Depends on what debtor owns court may issue charge order on a house, shares, assets and money.
Charging order on property doesn’t enforce a debtors to sell it. But in case of selling house, judgment creditor will get his money back first. If property had another charges such as mortgage before enforcing court order, the it payment will be done in the first place.
Procedure of issuing, stopping of charging order is governed by CPR part 73 and practice direction.
Charging order will not be issued for property which is jointly owned and co-owner is not a debtors under CCJ.
Land registry and charging order
If debtor is individual and address is known, then any person may request land registry data about owned house, land and other property online or by post.
Cost of online request land registry data is £3 per document. Land registry provide information for charging order such as name of owner, date of purchase or selling house, price, the mortgage lenders and other restriction of property including other restraining orders.
If the dept was paid out then property owner would have to apply for the restriction to be removed by completing land registry form RX3 and provide evidence why restriction is no longer required.
Cost of charging order is provided in Guide of county court fee EX50. It is £110 for each application of charging order.
How to apply for charging order?
If judgment creditor want to apply for charging order against property or house then form N379 is need to be completed and filed to the court. If you want apply for charging order against stocks, shares or money the use court form N380.
You need to provide in application details such as information about CCJ, debtors details, details of owned property and debtor’s interest in this property, whether it is sole or joined ownership. Each application for enforcing CCJ must contain statement of truth.
Interim charging order
All charging order against property is processed in The County Court Money Claims Centre (CCMCC) in Salford.
Under the CPR 73.4 application of order against land initially be dealt without hearing and interim charging order will be issued by court officer. Parties may ask within 14 days the judge will consider to issue charging order under CPR 73.5
Charging order against assets, investments and money is always considered by the judge.
Copies of the interim charging order, notice and any related documents with the date of final hearing must be served by the judgment creditor on within 21 days of the date of the order.
If creditor has got a interim order he should register it at Land registry. It is obligation of creditors to apply for restriction to be made against house, land or property. Land registry form RX1 is need to be completed to enter a restriction.
Final charging order hearing
Judgment creditor must file the court certificate of service confirming that all debtors has been notified at least 2 day before hearing.
Parties may object final charging order hearing at least 7 days before hearing.
Any objection will be considered by the judge before hearing and where it is necessary direction will be given.
At the hearing if final charging order has been issued and drawn in form N87 interim order usually is discharged.
If final hearing is successful, debtor has to sell his property or land to cover a debt. In some circumstances, debtor may ask the court to attach conditions and don’t make debtor to sell a house or land straightaway. Conditions could be related with children or other valuable person who live in house or use a land. Or debtors could suggest a repayment plan.