Charging Orders – A Powerful Tool for Debt Safety

In today’s financially crumbing world, debt safety has become an important issue. One of the ways to ensure security of the debt is through the charging orders. These orders are nothing but a safeguard against the debt which has been provided, that the debtor is liable to pay for what he owes s per his or her debt. In other words, these orders serve the same purpose as a mortgage serves for a loan against house or land. In apparent sense, these orders are filed by creditors to ensure the safety of the credited amount. These orders are required to be filed in a county court. Before these orders are put into action by the court, a hearing is held in the court wherein there are multiple ways for the debtor to avoid these orders to materialise. That is, the court hears both the side involved in the credit exchange and analyses the feasibility of the order.

The charging orders can be incurred on the debtor by the creditor on basically two grounds. If the debtor has a county court decision against him to pay the debt in one single way or the debtor has defaulted over his instalments to relieve his debt; in both conditions the creditor can call for the order. The standard procedure for getting these orders takes place in 2 phases. In first phase, the court issues an interim order on your application and a hearing takes place usually within 3 weeks. The hearing warns the debtor against dealing against the property which has been tagged by the creditor for order application. The second phase issues the final order which can be challenged by the debtor within a week, under certain conditions.

The court takes into account the reasons put forward by the debtor for proposing the halting of the orders and makes the final decision accordingly. If the debtor manages to convince the court that there is no need for the charging orders, the orders might not materialise for the creditor. Also, if the debtor has more than one outstanding debt, then the court may find it inappropriate to issue the orders for just one creditor since this puts the creditor in prejudiced space.

There are various other grounds which the debtor can use to pitch forward his charging orders halting proposal. This includes separation after divorce, jointly owned properties, health issues, etc. Also, the mode of payment is crucial; that is, if the debtor is entitled to relieve his debt in instalments or otherwise. Hence, the creditor is supposed to have taking all these parameters into his consideration while formulating his application to invoke the order on the amount which he has credited to the debtor.