A Charging Order is an order that is placed on a debtor’s property by a court for debt owed. If you have unpaid unsecured debt a creditor can request a UK court to place a charging order on your property if you do not keep up with the repayments. Basically this means that when your home is sold, the funds from the sale will go to pay your debt first.
A creditor cannot request a Charging Order if they have yet to issue you with a County Court Judgement (CCJ) first.
Once the court has considered the application from the creditor and is satisfied with the application, you will receive the order on an N86 form. The form will include information regarding the time and date of the hearing when the judge will decide whether to make a final charging order.
If the judgement is put in place, you will receive an N87 form (Final Charging Order). This form will also be sent to the creditor. The creditor will then need to inform the Land Registry of the order.
If you are worried about Charging Orders and have found yourself struggling with debt, the advice is not to panic but to address the situation as soon as possible. There are many solutions to help you manage your debts, we at DFH can help you to determine the best solution for your circumstances and help you regain control of your finances.
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