Claire Sandbrook
 
 
The debtor owns a property – what are my options?
 
If your debtor owns their own home, which is registered at HM Land Registry, or if they own other property, such as a shop, restaurant, factory, or a holiday home, you can apply to the Court for an Order which places a "charge" over the judgment debtor's property.
 
This "charge" acts like a mortgage, and although it will not result in immediate payment of your judgment debt, it will mean that when your debtor sells the property, the outstanding charge must be paid before the sale can be completed.
 
By paying or "discharging" the charge, you will then receive your money. Of course if there are a number of outstanding "charges" including one or more mortgages then these have to be paid off in strict priority i.e. from the date they were entered in the Charges Register to the property.
 
In the meantime it does mean your judgment debt is "secured" against the debtor's property. And it doesn't stop you from transferring a case where the judgment debt is above £600 and isn’t regulated by the Consumer Credit Act 1974. So a Shergroup Enforcement Officer can visit the address you have for the debtor, at the same time as you apply for a charging order over the debtor's property and you can then take legal control of goods which may result in more immediate money being paid.
 
A judgment creditor can ask for a charge on the debtor’s land or property for the amount they owe which is called a “charging order”.
 
The judgment creditor has to pay a court fee to apply for a charging order. If the land or property is sold the debtor will need to pay off the creditor’s charge before getting any of the proceeds.
 
A charging order does not mean the debtor has to sell the land or property but in some cases the creditor may try to force them to sell. This is called an application for an “Order for Sale”.
 
The debtor can defend their land or property at a hearing if that is the case.
 
Further resources to assist you include:
 
Shergroup Enforcement also has a separate legal team who can also advise on all the other court based enforcement options.
 
If you would like more information on any aspect of enforcing your judgment please contact us on all our open channels

 
 
 
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