Debt recovery by charging order

Where more than £1,000 is outstanding under court order(s) and the debtor has a legal interest in a property, we may apply to the County Court for a charging order on the property.

Under the order, the proceeds from selling the property, or other legal interest, will go towards the outstanding debt. The debt must be paid off before you receive the proceeds of the sale.

When we can apply for a charging order

Before a court will consider an application for a charging order, we must have obtained a Liability Order from the Magistrates’ Court for unpaid Council Tax or a County Court Judgment for other debts owed.

The application process

An initial application is made to the County Court ‘without notice’ to the debtor. We will then apply to the County Court for a charging order.

Once the court has considered the application and is satisfied, they will make an interim charging order. The court will then fix a date when consideration will be given to the making of a final charging order.

Sale of your house or land

You are not under any obligation to sell your property once the final charging order is in place; however, there are some circumstances where we may apply to a court for force of sale. This is, however, rare and the Court would have to agree to the application before such an order would be served.

When the house or land is in joint names

If a charging order is made by the court then it will only apply to your share of the property.

Interest charges 

If we have taken the debt to the County Court, we are able to add interest once a charging order is made.

If you pay the debt after a charging order is granted

If you pay off the amount you owe under the charging order, the order will then be discharged. The amount you must pay will include the debt, court fees and any applicable interest that have been incurred.

This is a guide only and you are advised to seek independent legal advice