Charging order England and Wales
Charging order England and Wales, the court allows a creditor to attach debt to your property when the creditor obtains a county court judgment order against you
Your creditor has to obtain a county court judgment (CCJ) or other court order against you before they can apply for a charging order against your home.
If a CCJ was made before 1 October 2012, the creditor can only apply for a charging order provided the CCJ states you must pay the whole debt immediately or by a specified date, called a forthwith judgment, and you have not done this; or by instalments and you have missed payments.
However, if the order to pay by instalments was made on or after 1 October, the creditor may argue that they can apply for a charging order straight away. Some judges may accept this argument even though the original judgment was made before 1 October.
If a CCJ was made on or after the 1 October, the creditor can apply for a charging order straight away. This applies even if you are up to date with payments under the CCJ.
The application for a charging order has two stages, interim order and a final order.
An interim charging order is usually granted by the court to stop you from selling your property.
A charging order secures the debt against your home or other property you own. You could lose your home if you do not pay back what you owe.
Once a court grants your creditor a final charging order, this means that if you sell your property, you must pay your creditor in full for the funds available from the sale of the property.
Once a charging order has been made, your creditor can either wait until you sell your property or can apply to the court for another order to force you to sell your home. This is called an order for sale.
You can dispute for giving final charging order for sale and can ask for conditions to be attached to a final charging order which make it harder for the creditor to force a sale.
If a CCJ was made before 1 October 2012, the creditor can only apply for a charging order provided the CCJ states you must pay the whole debt immediately or by a specified date, called a forthwith judgment, and you have not done this; or by instalments and you have missed payments.
However, if the order to pay by instalments was made on or after 1 October, the creditor may argue that they can apply for a charging order straight away. Some judges may accept this argument even though the original judgment was made before 1 October.
If a CCJ was made on or after the 1 October, the creditor can apply for a charging order straight away. This applies even if you are up to date with payments under the CCJ.
The application for a charging order has two stages, interim order and a final order.
An interim charging order is usually granted by the court to stop you from selling your property.
A charging order secures the debt against your home or other property you own. You could lose your home if you do not pay back what you owe.
Once a court grants your creditor a final charging order, this means that if you sell your property, you must pay your creditor in full for the funds available from the sale of the property.
Once a charging order has been made, your creditor can either wait until you sell your property or can apply to the court for another order to force you to sell your home. This is called an order for sale.
You can dispute for giving final charging order for sale and can ask for conditions to be attached to a final charging order which make it harder for the creditor to force a sale.
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