Charging Order Solicitors, Liverpool
If your business is chasing money owed by another company, you may be feeling frustrated and worried about the impact on cash flow. Our debt recovery service aims to remove the burden of chasing debt from busy company owners, allowing you to focus on running your business. We use all the tools at our disposal to gain quick and effective recovery of your debt, working hard to preserve business relationships where possible.
If your debtor has failed to comply with a county court judgement, a charging order provides an option for recovery of the debt if the debtor is unable to pay. Here we provide practical information on obtaining a charging order. For advice and services specific to your business circumstances, contact our team.
What is a charging order?
A charging order is used to secure a money judgement over land, securities or other assets. When the court has ordered the debtor to make payment to the creditor to satisfy an outstanding debt, the creditor can apply to the court for a charging order to secure payment.
Just because a charging order has been granted this does not mean that the debtor will have to sell their property. For this to happen, a further order called an ‘order of sale’ must be applied for.
A debtor can challenge a charging order or order of sale, or can ask for conditions to be attached to the order, which could make it harder for the creditor to force them to sell their property.
What is an interim charging order?
There are two stages to the application for a charging order: an interim order and final order. An interim charging order, in most cases, is granted automatically by the court to prevent the debtor from selling a property before a final order can be made.
How to apply for a charging order
The first step is to apply for an interim order. A court officer will consider the application unless specific attention from a judge is required. If approved, you can then register the interim order at the Land Registry and serve the order on anyone with interest in the property. This might include co-owners, a mortgage lender, as well as the debtor themselves.
You will then need to apply for the interim order to be made final. A decision will be made without the need for a hearing unless the debtor or another party raises a formal objection to the application. From the time of applying for an interim charging order, it will generally take six to eight weeks for a final order to be granted if this is uncontested.
Contact Our Debt Recovery Solicitors in Liverpool
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For more legal guidance and support with charging order applications, contact our team today for a FREE no-obligation call, and we will explain your legal rights and options. Call us now on 0151 659 1070 or complete our online enquiry form.