What are the Creditors Rights?
Taking out a charging order effectively gives the lender priority over other unsecured debts. It means this debt will have to be settled in full plus costs and interest when the property is sold. At the moment, a judge will not grant a charging order unless the debtor has had a previous judgment ordering them to pay and defaulted on it. It may be they have failed either to pay the judgment debt in full or, where the court has approved payment in instalments, they have failed to pay one or more of these. To obtain a charging order the creditor first needs to apply to the court for an interim charging order. No notice is required and the judge can grant the interim order without the debtor attending the hearing if he is satisfied that there are grounds for it. The judge will then set a date for the final hearing. The debtor must be given at least 21 days notice. What are my Options At this stage it is vital that you seek professional advice if you have not already done so. If this is you
