In cases where a debtor has not paid the monies it owes to a creditor, the court can impose a Charging Order on any property owed by the debtor.
Charging orders mean that the debt is secured against that property, so that if it is sold, the debt can be paid.
In some cases, a Final Charging Order can be imposed by the court, which forces the sale of the property so that the debt can be paid.
Forcing the sale of a property using a Final Charging Order is not always possible, however – for example, the court may take into account the debtor’s personal circumstances if they should lose a property that is their home, or if they have dependants such as children or vulnerable family members living at the property.
Obtaining a Final Charging Order will secure the debt, however, in case the property is sold or re-mortgaged.
If the property is re-mortgaged or used for the purposes of equity release, the debt can still be paid if there is sufficient equity in the property.
Duncan Lewis civil litigation solicitors can advise on obtaining a Charging Order at any stage of a debt recovery matter – including conducting searches relating to a particular property owned by the debtor to establish ownership and whether there are any outstanding charges, such as a mortgage or secured loan.
Duncan Lewis can also advise on applying to the court for an instalment order to be made – which means the debtor pays the outstanding monies in agreed instalments.
In cases where a debt is being repaid in instalments, it may still be possible to obtain a Charging Order so that the debt is secured against the debtor’s property.
For expert legal advice on debt recovery and enforcement and Charging Orders, call Duncan Lewis Civil Litigation Solicitors on 0333 772 0409.