Final Court Order - what next?

[tjsgifan]

Hello,
I have a friend who has been dealing with a difficult break up and 12 months ago the father of their only child stopped paying the agreed rate of Child Support. After several court hearings she has recently (after October 1st if it makes a difference) been awarded a Final Charging Order against the old family home which he retains. The question is, although this is a good thing, it seems to be a long term solution only - no time limit is set for him to pay outstanding payments and potentially he could stop paying anything and just let the FCO accrue?

What is considered to be the next step to get payment of the balance recovered? Is it to apply for an Order for Sale? This seems harsh but for financial reasons she really needs to try and get back some of the not insubstantial underpayments to help with rent payments and the child's welfare.

I've looked at http://www.adviceguide.org.uk/englan...ing_orders.htm and it doesn't mention anything like a Statutory Demand, but is this a feasible option?

I appreciate this forum usually operates on consumers tackling with FCO's received from creditors, but any advice is appreciated as she's a good friend and we want to help her if possible.

Thanks.

[Nikolai]

Re: Final Court Order - what next?

A Charging Order gives security for the money owed - the debt is secured against the property. Before doing anything by way of enforcement check that there is sufficient equity in the property to cover the amount owed. If the matter went through court your friend will have a good idea of (a) how much the property is worth and (b) the amount outstanding on any prior mortgages / secured loans.
Applying for an order for sale is the only practical way of enforcing the charging order. This requires your friend to make another application to the court (this time for sale of the property). I would not go down the statutory demand route - your friend has security, so enforce that, the SD is not the correct remedy in this case.
I often found that the prospect of losing their property made them pay up in advance of any hearing, so applying for sale may be a sound tactical move anyway.

[labman]

Re: Final Court Order - what next?

Nikolai clearly has experience of this, and I make no claims to. However, it was always my understanding that courts are reluctant to grant an Order of Sale when a Charging Order has been awarded.

It might be worth getting advice from a legal professional to find out your options. Clearly applying for an order of sale is one, and pursuing via a Statutory Demand is another if the amount owed to you exceeds £750. There may be other options.

[tjsgifan]

Re: Final Court Order - what next?

Thank you Nikolai and labman, the charging order is reassuring in the long term but it is beginning to look like the Order for Sale is next course of action to take as so far the ex has shown reluctance to make up on any of the debt owed. Unfortunately time is against our friend due to things like rent to a private landlord being due soon and various other expenses building up.

I will investigate that procedure some more.

Thanks again for the feedback.

[Nikolai]

Re: Final Court Order - what next?

Labman is right, the courts are generally reluctant to make an order for sale if there is any chance of settling the matter another way. A statutory demand is not one of those ways. If you issue the SD, the opponent could apply to set it aside on the grounds that there is security for the debt, and a legal method of enforcing that security (by applying for sale), so if you're not careful, you could end up with an order for costs against you.
You should regard the application for an order for sale as a device to enforce what is due. Although the judge will be reluctant and may try to get the parties to negotiate, ultimately the judge will have no option but to order sale if the opponent doesn't budge. Bear in mind that in granting a final charging order, a district judge has already appreciated that there may come a time when it is necessary to enforce the order by way of sale.
Taking professional advice is always a good idea - show them what I've said.

[Celestine]

Re: Final Court Order - what next?

Does the father live alone in the property? Are there other children resident there?

Yes, Judges are often reluctant to grant a sale, and rarely grant one when other solutions are available, especially when dealing with a large finance company.

However in this instance, the Judge may be more sympathetic as it is causing direct impact on children and will resolve matters permanently (hopefully)