Do you have a debtor who is refusing to pay, despite having the assets to settle your debt tied up in property? Read on to learn how we can use a Charging Order to recover your funds, without causing further negative impact to your cash-flow. 

What is a Charging Order?

Charging orders can be used against debtors who  own property. A charging order places the value of the debt against the value of that property – If and when the debtor sells said property, the lawyers handling that transaction are obligated to arrange for the settlement of your balance. Essentially, a charging order secures a previously unsecured debt against property.

What are a Debtors rights with a Charging Order?

A charging order can only be implemented if the debtor is in clear breach of a county or sheriff court judgement. If the court, for example, instructs the debtor to pay the debt in instalments and the debtor complies, you cannot proceed for this (or any other) enforcement action.

If the debtor can prove that a charging order will prevent payment of a higher priority debt, such as a tax bill, the court may also refuse to grant one.

How does a charging order resolve my balance?

When the property is sold, you will receive payment in full. The positive side is that it guarantees the resolution of the case, however, this does mean that the balance won’t be settled until a sale occurs – If the debtor has no intention of selling the property in the next 20 years, it will take 20 years to recover the funds! Therefore, a Charging Order is only appropriate in select recovery cases.

How can Piccadilly use a charging order to recover a balance.

As with all cases, we conduct our own bespoke debtor profile prior to recovery action occurring. Should a debtor own property, part of that review will investigate if a Charging Order is the most appropriate course to take. If so, as with every recovery, we will proceed on a completely no-win, no-fee basis, limiting damage to your cash-flow.