Debt Recovery: Applying for a Charging Order

Year Published: 2021

If you experience that one of your debtors is refusing to pay a sum of money owed to you, and you have a County Court Judgment (CCJ) or Costs Order in your favour, this means that the Court have formally decided that the debtor owes you that sum of money, which you are entitled to enforce if the amount you are owed is not immediately received.

There are many different enforcement methods available. Based on our knowledge and experience, the suitability of each method would be fully considered in order to maximise your prospect of debt recovery. Jodie Sumner, Debt Recovery Executive, explains the process of using Charging Orders and the effectiveness of this method.

How Does a Charging Order Work?

A CCJ or Costs Order can be secured against any property that your debtor owns, whether as a sole, joint or business owner by way of a Charging Order which is then registered with the Land Registry. The property will not then be able to be disposed of without repayment of your charge being addressed, except in the event of repossession.

Unfortunately, a Charging Order or restriction does not guarantee swift settlement of your debt and payment is usually only received if your debtor re-mortgages or the property is sold. You may therefore not receive payment for a number of years.

However, should your debtor wish to avoid a charge being placed on their property at all, it is often the case that an application of this type might just push them towards settlement of the debt.

If you would like further information on making a Charging Order application, or for any other debt recovery matter, please contact Jodie Sumner on 0161 475 7606 or email [email protected].

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