Advice Needed on Charging Orders

[skidbum]

Hi there, I'm owed some money by an (ex) friend and eventually resorted to raising a small claims that became a CCJ. I'm yet to receive a penny. I would like advice on my next steps. They own a flat and I would like to discuss charging orders. Which is the best forum?

[atticus]

https://www.justice.gov.uk/courts/pr...l/rules/part73

The process for charging orders is covered in CPR Part 73 and Practice Direction 73.

Does your debtor own the property solely or jointly with someone else? If the latter, a charging order can be easily circumvented and may not give you strong protection.

[skidbum]

Hi Atticus, thanks for responding. The debtor is the sole owner. My question about this is what happens to a charging order if the flat got repossessed?

[atticus]

It depends whether the sale proceeds are sufficient to pay you after clearing all charges ranking ahead of yours in priority.

[CPR007]

Thats very helpful so can somebody pre-empt a charging order being applied for by contacting the courts to suggest why it should not be granted?

[atticus]

Yes. have a look at charging order procedure in the CPR.

[CPR007]

Cheers

[CPR007]

What CPR rule are we looking at?

[CPR007]

I guess I can issue a stop notice and rely upon 73.12

[atticus]

That would be a novel approach.

Have you looked at 73.10/10A?

The point is that notice of an interim charging order must be given to all those with an interest in the property, and they may object to the order being made final. If the objection is successful the interim order will be discharged.

[CPR007]

So at 73.10A (b) the objecting party could issue their objections to the registering creditor prior to them even making an application.

[CPR007]

This would suggest that if a party is the sole registree within the land registery of the said property then a charging order cannot be applied to it?

no disposition of the registered estate, other than by the registered proprietor, or any registered charge registered before the entry of this restriction, is to be registered without a certificate signed by the applicant for registration or their conveyancer that written notice of the disposition was given to (and the name of the debt company)

[CPR007]

Sorry given that they are not connected to the debt!

[atticus]

No. If the property has only one registered proprietor, being the judgement debtor, then an entry will be made in the charges register section of the title. You have quoted the form K restriction entered when the charging order has been made against one of two or more joint owners.

As I asked in your other thread this morning, what is going on here?