Update on Charging Order Applications

The Tribunals, Courts and Enforcement Act 2007 (TCEA) amends the procedures for various methods of enforcement of money judgments.  On 17 May 2012 Section 94 amended the Charging Order Act giving the Lord Chancellor power by regulations to set financial thresholds for the making of charging orders, and for the enforcement of those orders by an order for sale. 

Also, on 1 October 2012 Section 93 will be brought into force which means that where a debtor is discharging a debt by making instalment payments a charging order application may now be made even though there has been no default in payment, whereas before this was not allowed.  Noting however, that even if an order is made, where there has been no default, the court would not entertain an application for an order for sale. 

Therefore if you have a debtor who is discharging a debt by way of instalment payments, if the amount outstanding is still therefore a sizeable amount, you may wish to protect your position further, if your debtor has beneficial interest in a property, by applying for a charging order.