Archive for April, 2010

Charging Order – How to apply

Monday, April 12th, 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)

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