Enforcing a judgment by way of a charging order:

If you have obtained a judgment in your favour, but the defendant or debtor isn’t cooperating, a the process known as ‘Enforcement’ enables the Court to intervene and assist you in obtaining any damages or legal costs that you are owed by the defendant. The most common way of enforcing an order is by way of a Charging Order. A charging order is an order whereby the Court places a ‘charge’ up to the amount that you are owed. This is then registered over the defendant’s assets, ensuring you a level of protection in respect of your debt (provided there is sufficient equity in the property).

A charging order prevents the defendant or debtor from selling their assets without paying what they owe you. Such assets include real property, land or wider investments. A charging order over assets does not require the defendant to sell the assets, but your money is protected if they do. Note that you can only apply after obtaining a judgment.

The Process of Obtaining a Charging Order:

First, an Interim Charging Order is sought.

A Court Application must be issued, a court fee must be paid, and the relevant documents must be served on the defendant in preparation for a potential hearing.

The defendant has an allocated time period to consider your application, and potentially challenge and defend your application. This may result in further court hearings.

Only once the interim application has been approved and any objections denied, will the Court grant a Final Charging Order over the defendant’s assets and your judgement is protected.

There are additional steps to take. These include serving the interim orders on the defendants and sending relevant documentation to relevant institutions. This will include the land registry, third party banks and other individuals. In order to be valid, this needs to be done timely and accurately.

Once the Final Charging Order has been obtained, creditors will often push for an Order of Sale of the asset. Upon application, the court will consider forcing a sale of the asset to release the equity to distribute to the creditors.

Potential Hurdles Taylor Hampton can assist you with:

There are several potential barriers that may deter the court from granting you your charging order.

Firstly, the debtor, or other interested parties, may object to the order. Common grounds for objection include disputes about the debt amount, claims that the debt is already paid, or arguments that the charging order would be unfair or inappropriate.

Therefore, it is vital that an application is thoroughly prepared. Additionally, a trained professional must oversee the process with the knowledge and the know-how to guide you to success. Our lawyers can help you with the application, any objections and ensure everything is done accurately and efficiently.

Why choose Taylor Hampton?

Our team are experts in successfully obtaining both interim and final charging orders for a number of clients.

Taylor Hampton has significant expertise in not only getting you the judgment itself, but ensuring you receive what you are entitled to, often intervening at advanced stages to rectify situations gone awry. Our highly experienced solicitors can offer clear, sensible, and effective assistance to assess the merits of your circumstances and provide the best advice to guide you through the process of obtaining a charging order or other enforcement procedures.