Charging Order

A charging order is a way of securing a judgment debt by imposing a charge over a judgment debtor’s property. This prevents a debtor from selling his or her property without paying what is owed to you, provided that there is enough equity in the property after payment of any other creditors including mortgagors or second charge holders.

A charging order is most effective when there is substantial equity in a property and the judgment debtor is the sole owner. A charging order does not of itself realise funds to satisfy a judgment debt, however, it is a means of securing a judgment debt for payment upon the sale of the property.