When you have debts and have to visit the court, it means that your creditors have applied for the court orders against you. Furthermore, they might have the County Court Judgements as well. If this entire situation occurs then you have basically two things to do — One is the continuation of the regular payments and the other is paying all the debts at a time. 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. Removing a charging order means you have to pay the creditors in installments. Or, pay the entire amount on a fixed date.
On receiving the orders from the court, your assets also get involved and this is called the Charging order. On the other hand, if you own any property jointly, then the charging order will be shared jointly.
It’s important to know how to remove a charging order from a property. This will not only help you to eliminate the debts but also safeguard your assets as well. So, let’s see how.
What is the Charging Order? Getting a Charging Order
The process of charging orders from the County Court involves two main methods — One is the Interim Charging Order, and the other is the Final Charging Order. Let’s get to know about them. 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.
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.
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.
The Creditors Application for the CCJ
With the help of the orders from the CCJ, you have to pay off the remaining debts. Now, it’s all up to you whether you are going to pay the debts in instalments or all at once. Before making the payments, be sure about your entire financial situation. After the order is being charged, you will be given a certain day time of day to prepare for the payments. If you violate the deadline, then you might be asked to pay an additional fine or charges.
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.
Making the application regarding the charging order is the initial phase. The interim order is generally made without hearing your side of the story by the court. After you get the order, you have 2 weeks of time. In between this time, you can take the necessary steps. But, there are also some conditions regarding that, too.
Your application will only be granted by the judge if you are up-to-date with the debt repayment. On the other hand, if the reason for countering the charging order application is legitimate, then the judge may take your application into consideration. Furthermore, in the case of the Interim order, if the decision is taken by the court officer, then you will get 21 days to reply to the order.
The Final Charging Order
Once the Interim order is being issued, you will receive the Final Charging order within 28 days. If you want to make any objections or take countermeasures, then you must act as fast as you can. State that in written format and address to the court as well as the creditors.
After you submit the application, the court will initiate a hearing process from you. In the United Kingdom, there are hearing centres. After the hearing is done, the judge will decide whether to initialise the final charging order or not. If your provided circumstances are logical, the court’s decision will come to a halt. So, now you Call Stepchange Number know how to remove a charging order from a property.
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 or how to remove charge on property 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.
Are the Court Fees Mandatory?
When you are not paying off the debts correctly, then only the creditors make an approach to the court. Yes, there is a certain fee that the creditors have to pay to the court. Later on, they add it to your unpaid debt amount.
Are you Eligible to Stop the Final Charging Order?
Actually, it will depend on certain circumstances. The court must consider those circumstances, according to the Charging Orders Act 1979. First, the court must know the details and then the court has to pay some extra attention to the matter if you have other creditors.
Now, coming to the structural circumstances, the court will only accept the creditor’s approach after the first date of October. Previously, if the court has already ordered you to pay the instalments, then hopefully, it will not issue the Final Charging Order.
On the other hand, if you are keeping a perfect pace with the payments, then the court will take some time to think before issuing the final charging order 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.
The Best Possible Arguments
Before the court makes the Final Charging order, you can state your arguments to the court, and the arguments are — the details of your financial condition, details of previous debts, are there any equity on assets or not, etc. On the other hand, the court will also look into the matter of the creditors, and investigate whether the Charging Order is going to affect the other creditors or not.
When one creditor is approaching the court, it may happen that you are somehow late in arranging that creditor’s repayable money and the remaining creditor’s money you have already arranged. In such cases, the Final Charging order will get affected. If the other creditors who want to object to the Final Charging order don’t receive the notice, then they might not be able to participate in the hearing.
Before approaching the County Court, the creditor must make a list of all the other creditors. If some of your debts are unsecured and don’t involve any assets, the Charging Order will be affected. You won’t be able to remove the Charging Order from the property.
A few more Ideas?
Further, while answering the question on how to remove a charging order from a property, there are also some additional ideas. If your total debts are less than 5,000 pounds, then the County Court will look forward to shifting the matter to the Administrative Order from the Charging Order. The residence where you live is generally the main asset that you have. If you own it jointly, then you can arguably tell the court not to make the Charging Order.
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In case you have a mortgage, it is known as negative equity, and then the County Court cannot issue the Charging Order against you. The creditors can be forced to sell your home and then get their payments back. Lastly, if the debt is smaller than the value of your assets, then there is no point in issuing the Charging Orders.
It’s better to act properly rather than dealing with how to remove a charging order from a property. When you have debts, try to make the payments on time and within the deadline. If you don’t do so, then apart from the Charging Orders, your debt amount might increase, and you have to pay it, no matter what.
If there is no equity in your assets, then there is no question involving them in the mortgage. As a result, the creditors cannot sell your property and take away their debts. Make sure that the Charging Orders don’t affect your family members.
If you have enough equity in your home and you move house, the charging order will usually be paid off as part of the sale process. If you own the property jointly with someone else, but the CCJ is in your sole name, this may not happen automatically. Contact us for national debtline uk.