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The Charging Orders in the UK — Effective Methods to Deal with it

The Charging Orders are only issued against you when the creditors go to the County Court for the debts that you haven’t paid yet. The Court will eventually issue judgments against you to pay back the entire amount as quickly as possible. 

The court order generally indicates two things — One is making regular payments under strict restrictions, not a single skipping of payments must occur. And, the other is paying off the entire amount at once. When the Charging Order is issued against you, then your assets will also be included in the list. Thus, there is a high possibility of selling those assets. 

The Time for Applying for the Charging Order

Your creditors can only apply for the Charging Order when they get the County Court Judgement against you. There are several rules regarding the application of the Charging Order. The date of applying for the original County Court Judgement should be correct. On the other hand, the date of issuing the judgement must be correct, too. Last but not least, the notice must be filled with all the necessary details regarding the County Court judgements. Thus, you need to know everything about removing a charging order.

Details of the Charging Order, in a month

The month of October is generally considered one of the most important months for the Creditors. If your creditors get the County Court Judgement before the first date in the month of October, then they are very much eligible to apply for the Charging Order. This happens when you miss a certain deadline of payment for a month. Or, you have accidentally missed an instalment. 

In such conditions, you might have to visit the court for hearings. On missing any monthly payment, make sure you meet the creditors as soon as possible to manage the entire situation before they make an approach to the County Court. When your creditors have already got the Charging Order after the month of October, then the judgement against you will be inevitable, even if you are paying the instalments accurately. 

Getting a Charging Order

Receiving the Charging Order by the creditors consist of two vital stages. One is the Interim Order and the other is the Final Order. Let’s learn about them, one by one. 

The Interim Order

The court will only grant the creditors the Interim order when the creditors restrict you from selling your assets, without their permission. Generally, this order is made without any type of hearing. If you want to say something against the Interim Order, the judge will definitely hear you, but there are several conditions that you need to qualify for that. 

You must be updated with every instalment along with its papers. And, the other is, there must be a vital reason which can convince the court officer that you are in some serious trouble. In case the Judge comes to a decision, then from the court officer, within 21 days of the time, you will get a copy of the Interim Orders. 

If the judge has already made the Interim orders, then he/she might refuse to change it. Other than that, the judge will eventually make the Interim Order and then set a hiring date. In this case, the local court will hear all of your thoughts and suggestions. After that, decisions will be made by the judge whether he/she is going to make the final Interim Order or not. 

The Final Charging Order 

After receiving the Interim Charging Order, the Final Charging Order will be made. You will have 28 days of the time to send any objections before receiving the Final Charging Order. The objection must be in writing, as it will be sent to the court. On sending the objection, the court will take some time and think whether they will send you the Final Order or not. 

The objection from you generally acts as a type of hearing. If they don’t get any type of hearings from you, then the making of the Final Order is just inevitable. Now, in the case of the Interim Order, if the judge has already made a decision of arranging the hearing, then you will be having a week’s time to send the objection regarding the making of the Final Charging Order. 

When the hearing takes place, the judge will scrutinize all the shreds of evidence that you have provided. After that, he/she will turn the attention to the creditors and listen to them. After that, the judge will come to a decision on whether to make the Final Charging Order or not. If the Final Charging Order is made, the creditor has to wait until you sell the assets and gather the debt amount. 

Convincing the judge not to make the Final Charging Order

There are certain arguments that you can make to stop the issue of the Final Charging Order. Some of them are given below. Now, these arguments will reflect the critical condition which you are going through. 

Missing the Monthly Payment

In case you are going through a tough situation, you might miss a monthly payment. Holding the reason upfront, you can inform the judge about the entire situation — why you have missed the payment. Hopefully, the judge will understand the situation and might not issue the Final Charging Order. 

No Equity Value on your Assets 

If your assets have no equity value, then to some extent you will never get the good price and repay the debt. Tell this fact to the court and make them understand that seizing the value of the assets will not help the creditors to get their desired debt amount. 

The Voting

If you are having more than one creditors, then maybe someone might not be interested in charging any orders against you. If a voting poll is done and most of the creditors show the least interest in issuing a charge, then the other creditor’s decisions will not be valid. Inform the judge and he/she might not issue the Charging Order against you. 

On the other hand, it might pose a negative impact on the other creditors as well. It’s obvious that some of them might not want this type of troublesome situation. In addition to that, the process of the court can affect the flow of work. This will play an advantageous role in eliminating the Charging Order against you. 

Final Charging Order is made, what can you do?

It is not much you can do when the court has already made the Final Charging Order. Only three things can be done — First, you can apply for the order Set Aside. Second, ask for the conditions that are attached, as well as related to the Charging Order. Last but not least, request the court to make some changes in the Charging Order. 

Where can I find debt advice and get help dealing with a charging order?

A charging order can be a difficult thing to deal with. It puts you under pressure to keep up with creditor payments in order to keep your home. For you and your family, that is not a comfortable living arrangement.

That’s where IVA advice Plan come in. We work in partnership with some of the leading debt management companies in the United Kingdom, and we specialise in debt solutions for all kinds of debt.

Our team can offer you free debt advice, and give you all the information you need to take control of your debt. For free, confidential debt help, reach out to IVA Plan today.

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