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How to Remove a Charging Order from a Property?

charging order

The charging order is mainly issued by the CCJ, where CCJ stands for the County Court Judgement. The main intention of the order is to make you pay back the money that you owe from the creditors. The Charging Order means you have to pay the creditors in installments. Or, pay the entire amount on a fixed date. 

When you make much delay in making the payments, the creditors have every right to report against you to the court. After the necessary investigation, the Charging Order will be issued against you. If you are having assets of your own, then selling them can repay the creditors. 

Getting a Charging Order

The creditors are the only person that can get the Charging Order. After that, they can send it to you. Basically, the Charging Orders can be of two types—- Interim and Final. In critical consequences, the process of selling property is known as the Order for Sale. 

The Interim Charging Orders

The County Court Judgement grants the interim charging orders so that you don’t sell the assets you have without informing the creditors. This order takes place without any type of hearing apart from the judge. Now, the decision must be taken either by the judge or by the court officer. 

If the court officer takes the decision to grant the Interim Order, then after granting it, your creditors will send it to you within 21 days. Else, regardless of the decision made by the judge, the creditors might refuse to accept the order. This can happen just because a hearing date will be set afterwards and no creditors want this type of delay in getting payments.

The Final Charging Orders 

After the interim charging orders, comes the Final Charging orders. When your creditors get the final charging orders and then send them to you, it means that under the supervision of the creditors you are allowed to sell the assets. On having queries, you can report directly to the court. If they find your queries legitimate, then a hearing date will be scheduled by the court. 

During the process of hearing, the judge of the CCJ will look at all the details of the evidence that is being sent by you. The pieces of evidence indicate that you don’t want any charging orders against you. After that, the judge will further look into the arguments created by the creditor. After investigating the entire matter by going through the facts submitted by both sides, the judge will decide whether he/she will grant the Charging Order against you or not. 

How to Remove a Charging Order from a Property?

Removing the Charging Order from your property will only be effective when you stop the final charging order to be granted by the County Court Judgement. Here are some of the vital arguments that you might show the court to stop the final charging order or prevent it from being created at its early stages. They are here as follows: 

Never miss any Instalments 

You need to maintain the flow of the desired monthly payments of the creditors. Not all creditors have the ability to compromise. Missing a single payment can lead to the arrival of the creditors to the Court. After that, the charging orders will be issued against you. 

Own Assets of Equity Value

The equity of your assets comes as a profit when you sell it to pay off any debts or mortgages. If there is no equity value in your assets, then you will not be able to pay the creditors after selling it. That is why you have to look out for the equity value of your assets. 

Convince Other Creditors 

It’s well and good when you are having more than one or more creditors. If you are able to convince most of them, then the other will eventually follow. As a result, there will be no Charging Order against you. Just pay the monthly instalments accordingly. 

Living with Others 

When some other people are living with you, somehow they can face the same critical situation of Charging Order. They might not have to give the money but psychologically they are also being harassed. So, tell the court about this matter, the Judge will understand the situation.

What if the Charging Order is still granted?

If the Charging Order is still being granted by the Court, then you might not be able to do much. The things that you can do are here as follows:

  • Apply for another order which is known as set aside.
  • Ask for attachment of necessary papers that reflect the conditions of the charging order.
  • Request the court to change the charging order entirely.

After hearing all this, the court might take some time to think. The decision can turn out to be positive, as well as negative depending upon the circumstances. 

Is the Charging Order visible in your Credit File?

No, the Charging Orders are not visible on your credit file separately. But, the matter of County Court judgement is clearly visible. This helps in degrading the credit points that might create a barrier in future credit purchase and sales. 

Is the Time-span of the Charging Order 12 years?

No, there is no fixed time span of the Charging Order. The order will remain active and will also be recorded on the land registry unless and until you are paying off the full debts. After the payment is done, the order will automatically be removed by the land registry. If you are a citizen of Scotland, then the expiry date of the charging order is 12 years from the date of initiation. 

Types of Charging Order

Hopefully, you have understood that the Charging Orders is directly related to the assets. Now, there are also some other Charging Orders that might be used in some cases, such as – Legal Aid, Bankruptcy, Council tax, and others. 

What is the Statutory Interest on Charging Orders?

The statutory interest on the Charging Orders will be near about 8% if the main debt amount is over 5000 pounds. It’s mandatory that you have to pay this rate of interest with the principal debt amount. This case is also being applied on the other charging orders like Legal Aids, Council Tax Arrears, Bankruptcy and others.