Legal issues
CPR Part 73 governs charging orders. The creditor must identify the relevant asset and the debtor's interest. Existing mortgages or earlier charges rank ahead and can determine whether the order has meaningful security value.
A charging order and an order for sale are distinct steps. Whether a later sale application is available and proportionate depends on the facts, value, competing interests and court's discretion.
Evidence that matters
Useful material includes the judgment, current balance, Land Registry title, ownership details, mortgage or charge information, company filings where relevant and valuations or equity information.
Reasonable lines of enquiry
Before applying, estimate the debtor's actual equity after prior secured claims and check whether the asset is jointly owned. A charge over an asset with little or no net equity may offer limited practical value.
What happens next
An application is made for a charging order. Depending on the procedure, an interim order may be made and served before the court considers whether the charge should become final. The charge then needs to be protected or registered appropriately against the asset.
Immediate steps
Obtain current title and charge information rather than relying on the debtor simply being described as a property owner. Calculate the unpaid judgment balance and likely net equity.
What should you send us?
Send the judgment, balance, property or asset details, Land Registry information, known mortgages or charges, ownership information and earlier enforcement documents.