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.
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.
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.
What is the 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 Interim Order
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 know how to remove a charging order from a property.
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.
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.
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.