Charging order

Charging order

A charging order, in English law, is an order obtained from a court or judge by a judgment creditor, by which the property of the judgment debtor in any stocks or funds or land stands charged with the payment of the amount for which judgment shall have been recovered, with interest and costs.

United Kingdom

The provisions of charging orders in the UK are under the Charging Orders Act 1979 (formerly under the Judgment Acts 1838 and 1840)

A charging order can only be obtained in respect of an ascertained sum, but this would include a sum ordered to be paid at a future date. An order can be made on stock standing in the name of a trustee in trust for the judgment debtor, or on cash in court to the credit of the judgment debtor, but not on stock held by a debtor as a trustee.

The application for a charging order is made to the appropriate court normally without notice and considered by a judge without a hearing who will normally make an interim charging order (formerly a charging order nisi) and after a subsequent hearing on notice a final charging order (formerly a charging order absolute) can be made.

In deciding whether to make a charging order the court shall consider all the circumstances and in particular any evidence as to the personal circumstances of the debtor and whether any other creditor would be likely to be unduly prejudiced.

The charging order may be made subject to conditions.

If necessary, a stop order on the fund and the dividends payable by the debtor can be obtained by the creditor to protect his interest.

A solicitor employed to prosecute any suit, matter or proceeding in any court, is entitled, on declaration of the court, to a charge for his costs upon the property recovered or preserved in such suit or proceeding. (See Rules of the Supreme Court, o. XLIX.)

As to court procedure in England & Wales see CPR73 [1] and PD73 [2]

Increase in charging orders as an enforcement action in England and Wales

The reality of charging orders is that creditors can secure debts that they sold as unsecure, an unsecured debt has higher interest attached to it. Historically charging orders were a last resort for creditors as the Courts were reluctant to grant them. There has been a significant shift recently though with a huge increase in applications for charging orders and the orders being granted by the court. On Saturday 22 March 2008 the Times reported[1] "The Courts Service received a total of 92,933 applications in 2006, compared with only 16,014 in 2000. In 2006 the courts approved 72 per cent of applications from lenders to secure customers' debts against their homes, up from 60 per cent in 2000." On Sunday 13 April 2008 the Sunday Mirror reported[2] "An alarming 97,017 'charging orders' were made in 2007 - up from 66,911 in 2006." §

References

 This article incorporates text from a publication now in the public domainChisholm, Hugh, ed (1911). Encyclopædia Britannica (11th ed.). Cambridge University Press. 


Wikimedia Foundation. 2010.

Игры ⚽ Нужен реферат?

Look at other dictionaries:

  • charging order — An order of court obtained by a judgment creditor charging the interest of a judgment debtor in a general or limited partnership with payment of a judgment against the debtor. This order may be obtained even if the judgment is not against the… …   Glossary of Bankruptcy

  • charging order — an order of the court granting the applicant a charge over property belonging to a debtor of the applicant. Collins dictionary of law. W. J. Stewart. 2001. charging order …   Law dictionary

  • Charging Order — A court authorized right granted to a judgment creditor to attach distributions made from a business entity, such as a limited partnership (LP) or limited liability company (LLC), to a debtor who is a partner of the business entity. The charging… …   Investment dictionary

  • charging order — /ˈtʃadʒɪŋ ɔdə/ (say chahjing awduh) noun Law an order preventing the transfer of the stock, shares, funds or annuities held by one whom the court judges to be a debtor …  

  • charging order — A term of the English practice for a court order subjecting the stock or funds in a public company, belonging to the judgment debtor, to the satisfaction of the judgment …   Ballentine's law dictionary

  • charging order — noun Britain : an order of court making a judgment debt a charge upon the stocks or funds of the debtor …   Useful english dictionary

  • charging order — A statutorily created means for a creditor of a judgment debtor who is a partner of others to reach the debtor s beneficial interest in the partnership, without risking dissolution of the partnership. Uniform Partnership Act, No. 28 …   Black's law dictionary

  • charging order — A statutorily created means for a creditor of a judgment debtor who is a partner of others to reach the debtor s beneficial interest in the partnership, without risking dissolution of the partnership. Uniform Partnership Act, No. 28 …   Black's law dictionary

  • order — or·der 1 n 1: a state of peace, freedom from unruly behavior, and respect for law and proper authority maintain law and order 2: an established mode or state of procedure a call to order 3 a: a mandate from a superior authority see also …   Law dictionary

  • Order of Attorneys of Brazil — Logo of the Order of Attorneys of Brazil Formation November 18, 1930 Type Legal Society Headquarters Brasília, Federal District …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”