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Specialist legal advice to creditors from our team of experts for the enforcement of Charging Orders by Order for Sale.

A fresh look at enforcement

The increase of personal debt has meant that enforcement of judgments by application for Charging Orders has become common place. Once the Charging Order is granted many creditors simply sit on their security in the hope that it may come to fruition at some point in the future.

In these days where cash flow is vital, having money locked up in a Charging Order is not ideal. It may be many years before the Charge is redeemed.

Applying to the court for an Order for Sale is a procedure for enforcing a Charging Order. Effectively, it pressurises the debtor to settle the debt due, come to agreed terms of repayment or face the probability that the Court may grant the creditor an Order to sell the debtor’s property in order that they receive payment of their debt.

How does it work?

A Charging Order is enforceable by an application to the Court for an Order for Sale. A creditor must first obtain a Judgment against a debtor and then apply to the Court for an Order securing that Judgment against the debtor’s property by way of a Charging Order application.

Once the Final Charging Order has been obtained, a claim form to commence the Order for Sale proceedings is sent to the Court. Various items of information must be produced to the Court as part of the application. We aim to present the application within three weeks of instruction. Information required includes, a valuation of the property, details of existing mortgages and details of all occupiers living at the property. If a property is jointly owned then the joint owner will also be joined as a party to the proceedings. There is a distinction between an application to enforce a Charging Order and an Order for Sale under s14 of the Trusts of Land and Appointment of Trustees Act 1996.

The Claim is issued at the Court at which the Charging Order was granted and is served upon the debtor and other property owners. A hearing date is then appointed when the Court will consider the creditor’s claim and any objections. The granting of an Order for Sale is discretionary and may be suspended upon the debtor maintaining monthly payments and in a limited number of cases may be refused altogether.

Once an Order has been granted the debtor must either pay the total sum with costs due to the creditor within a stipulated time scale, alternatively, provide voluntary possession of the property. Should they fail to do either then the creditor will apply for a warrant for possession to evict the debtor from the property and obtain vacant possession. The property will then be marketed for sale and upon a sale being concluded the balance due to the Creditor with costs will be paid from the proceeds of sale.

What will it cost?

At Wilkin Chapman we aim to be innovative on fees. Following our successful insolvency package, we offer our Order for Sale service on a similar “no recovery-no fee” basis. Please contact us for a discussion about how we can tailor our service to your particular requirements.

The Statistics

The vast majority of cases that we advise clients to pursue result in payment without the need for repossession. Last year our team obtained a recovery arte of 93% from the cases issued and only 4.3% of cases reached the repossession stage.

The Law

There is no minimum time that a creditor must wait before an application can be issued nor is there a minimum debt value, but this is a draconian measure and as such consideration must be given to each individual case and the circumstances involved. At Wilkin Chapman specialist advice will be given on any scenario encountered.

There is a widespread belief that an Order for Sale cannot be obtained if a property is jointly owned, or if there are children under the age of 18 in residence. This is incorrect. The current law reaffirms the position that a creditor is entitled to be paid the balance due to them and within good time.

Interactive Debt Recovery

All of our clients may utilise our on-line debt recovery system, without charge. You will be provided with secure access over the internet to track cases on-line and download performance reports.

Why use Wilkin Chapman?

Our lawyers have over 10 years experience in this particular field of enforcement and offer specialist advice on any individual case. In addition, we are confident about our advice and your prospects of recovery, hence, the attractive fees structure. We already represent a number of organisations using this specialist method of enforcement including national utility companies, debt purchasers, major debt collection companies, local authorities and finance companies.

We are happy to look at potential cases without obligation or cost and advise on prospects of success. Cases are dealt with expeditiously and professionally and you can be confident that your best interests are at hand at all times. We share your desire to recover and unlock the cash!