Help Understanding Charging Orders

[Akamas]

Hi all, I am trying to find out some information on charging orders and wondered if anyone knows the law in detail on this matter?

 

1. Is there is a limit to the term of a successful charging order? I know that some countries have a limit on the term, I think New Zealand has a 2 year limit for example. I am expecting that there is no limit in the UK (the table seams to be tilted in favour of the creditors on every other matter, so why not this?) but thought I may as well ask out of interest...

 

2. What is the equity slice threshold that is generally required for an 'Order of Sale' to be approved? If there was about 30K equity best case and the total debts amounted to 25k split between 5 creditors for example, would the order of sale be granted? Or would there be too much risk that the sale would produce too little equity to satisfy the debts? If the creditors all agreed to take a reduced slice of flesh so to speak, could it be approved in this way?

[maroondevo52]

Hi,

 

This thread might help...............

 

http://www.consumeractiongroup.co.uk/forum/legal-issues/203298-guide-charging-orders-orders.html

 

Regards.

 

Scott.

[Akamas]

I thought this might be of interest to all of you. It is a set of statistics for the amount of charging orders applied for and granted over recent years:

 

Table AP6

 

 

 

Charging orders, England and Wales

 

 

Return to index

 

 

Period Charging orders, England and Wales

 

 

 

 

 

 

 

 

Applications Orders

 

Made - Granted

 

2000

16,014 - 9,689

 

2001

21,870 - 15,487

 

2002

30,781 - 21,408

 

2003

35,052 - 25,217

 

2004

45,516 - 33,235

 

2005

65,780 - 49,218

 

2006

92,933 - 67,090

 

2007

131,637 - 97,026

 

Source: Ministry of Justice (MoJ)

 

 

Notes:

 

 

 

 

1. Charging orders allow a creditor for an unsecured loan which is in default to tie that

loan to an asset owned by the debtor. In many cases this asset will be residential

property but orders can also be granted against land, commercial property or other assets.

However figures on charging orders split by type of asset are not available

 

2. Data for all years have been revised, and figures for 2007 are provisional.

 

 

 

 

 

 

 

 

 

 

 

 

 

CML Research

 

 

9/9/2008