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Does the judgment debtor own property, land or shares?

A Charging Order is an effective way to secure a debt that cannot necessarily be paid immediately. Although creditors would like their money to be paid to them as soon as possible, they have the comfort of knowing that interest of 8% per annum accrues on charging orders.

Once a Charging Order is obtained, creditors do have the option to make an application to force the sale of the property in an effort to obtain the funds without waiting years until the property has been sold.

Frequently asked questions

What is a Charging Order?
An order obtained from the Court by a Judgment Creditor which charges the property, land, stocks or shares of the Judgment Debtor.

Can a Charging Order be obtained against a jointly owned property where one of the proprietors is not a party to the judgment debt?
Yes, the Charging Order will create an equitable charge over the judgment debtor’s beneficial interest only, the beneficial interest of the co-owner who is not a party to the Judgment will not be affected.

How can I obtain a Charging Order?
Once a money judgment has been obtained you can make an application to the Court for a Charging Order.

If I instruct a lawyer, can I recover my legal costs?
The court will allow fixed costs pursuant to CPR 45.

Will interest accrue on the debt owed?
Yes, interest will accrue at 8% per annum.

Do I have to wait for the owner to decide to sell the property before I will recover my money?
No, you have the option to apply to obtain an Order for Sale if the Judgment Debt is over £1,000.00.

If the Judgment is being paid by instalments, can I still obtain a Charging Order so the debt is secured?
Yes, The Tribunals, Courts & Enforcement Act 2007 introduced a change in 2012 to allow a Judgment Creditor to secure the debt owed to them even if there has not been a default on instalments.

Does the Judgment debt need to be a certain amount?

What happens if there are other charges already registered on the property?
You can still obtain a Charging Order but you should note that charges are paid in order of the date they are obtained. If there are five prior charges, your debt will be settled subject to there being sufficient equity in the property.

This article was written by Sophie Taylor, a legal assistant in our debt recovery team. For more information, contact slt@debenhamsottaway.co.uk or call 01727 735632.


The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.