What is a Charging Order?
Application for charging order (PDF, 1.33MB)
Final Charging Order (PDF, 494k)
A Charging Order is a court order that can follow a County Court Judgment (CCJ).
If you have a CCJ against you and are unable to maintain payments - or missed one - the creditor is able to apply for a Charging Order against you.
This means the creditor wants to secure the debt to your property, usually your house. As and when your property or land is sold and your mortgage is cleared, the debt plus any court fees must be repaid.
What should I do?
Don't panic - you can contact Clear Financial Solutions immediately for advice. Just fill in the form on the right of this page or scroll to the bottom for more details.
Can I stop a Charging Order?
Yes. Before a Charging Order can be made there must be a court hearing which you must attend. Here you can argue your case to prevent the order from being enforced.
Under The Charging Orders Act 1979 the court has to take into consideration all the circumstances of the case including:
- Your personal circumstances
- Whether any other creditor would be 'unduly prejudiced' - or at a disadvantage to the creditor who has placed the order
If you need to re-arrange the hearing to a nearby court you must apply using an N244 application form. You will need to state the reasons for this - for example work, distance, childcare or other means.
Interim Charging Order
Firstly the creditor must apply for an Interim Charging order, which must demonstrate its client is in arrears. The creditor must prove your interest in the property to be charged and details of other creditors (if known). A copy of the Interim Charging order will be sent to you at least 21 days before the hearing date.
The creditor can also register a 'caution' or 'restriction' on the property with the land registry. This prevents you from selling the property before the hearing.
Final Charging Order
The next stage is the court hearing in front of the district judge, who decides whether to make a permanent charge on the property or to discharge it. The judge will take all the evidence into account including your circumstances and whether a Charging Order would cause other creditors to be unduly prejudiced.
If you want to object the order you should apply to the court beforehand and transfer it to your local court. You should also provide any relevant documents and evidence including a financial statement - we can help you with this.
What next?
Get professional debt advice from Clear Financial Solutions
Just contact us by either:
- Calling 0845 1120 570
- Filling in our contact form and we will call you back.
