How to apply for a charging order
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8 February 2010
There is a two-stage process for obtaining charging orders.
(Civil Practice (Blackstone's):
Stage I
The first stage is to apply for an interim charging order by
issuing an application notice using form N379 containing the information
prescribed by PD 73, para. 1.2.
The required information includes details of the judgment
debtor, the judgment, and the property which it is intended to charge. The
application is considered, without a hearing, by a judge who will consider
making an interim order and fixing a hearing to consider making a final charging
order (CPR, r. 73.4).
If the interim order relates to land, it is usual, as a
precaution, to register it as a pending action under the Land Registration Act
1925 or the Land Charges Act 1972 before it is served on the debtor. At least 21
days before the final hearing (which is the second stage) the judgment debtor,
such other creditors as the court may direct, and certain other specified
persons must be served with the interim charging order, application notice and
any supporting documents (CPR, r. 73.5(1)).
Service of an interim charging order effectively prevents
dealings with the assets charged pending the final hearing (r. 73.6).
Stage II
The second stage is the hearing to consider making the order
final. If service of the interim order was effected by the judgment creditor, a
certificate of service must be filed at least two days before the final hearing,
or produced at the hearing (r. 73.5(2)). Any person objecting to the
order being made final must file and serve written evidence setting out the
grounds of the objection not less than seven days before the hearing (r. 73.8).
At the hearing the court may make a final charging order, discharge the interim
order, decide any issues or direct a trial of any issues (r. 73.8(2)).
For more information please contact us on 023 8023
5979 or email us on solicitors@lawdit.co.uk.
Riyaz Jariwalla is a solicitor who specialises in
intellectual property law and civil litigation.
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