Charging orders - Credit Union Law Lines
A Charging Order is a court order that can be sought where a customer/member fails to meet their obligations under a credit agreement, which entitles the creditor to a share of the profits from the sale of a property at such time as it is sold, in order to repay the outstanding debt.
A Charging Order can only be applied for once a creditor has obtained a judgment order through the courts. Once a judgment order has been granted, a creditor can apply to the courts for a charge to be placed on a customer’s property.
Such an application can be made irrespective of whether a customer is repaying a sum due under a court order or not. Generally the courts will not be opposed to any creditor securing a charge for a debt value exceeding £1,000 inclusive of any court fees and costs due under the judgment order.
