A Charging Order is an order of the court placing a ‘charge’ on a Debtor’s property, such as a house or a piece of land. The charge will be the amount you are owed plus any accrued interest and costs that may also be due.
A Charging Order may not normally get you your money immediately, but it may safeguard your money for the future.
Obtaining a charge on a property means that when the property is sold, the charge usually has to be paid first before any of the proceeds of the sale can be given to the Debtor. It is important to note that a charging order does not force the Debtor to sell their property. If the Debtor’s property already has prior charges on the property when your charge is registered, for example a mortgage, then those charges will be paid first.
Following an Interim Charging Order being made Final, you may have a third stage where you may apply to the Court for an Order for Sale of the Debtor’s property. This is an expensive phase and is dependent on several key factors including: the size of the judgment debt owed to you, the amount of equity in the property and the number of other prior charges on the property.