www.iva.co.uk

I've seen reference to 'charging orders' a couple of times in this forum.

What are they??

Regards

In short, Charging Orders are effectively a way for a creditor to secure their debt against a property or other asset such as land. In the event of the asset being sold then the creditor gets their money out of the proceeds of the sale, after other charges have been settled but before anyone else including the seller, gets their money.

Regards.

Thanks size5.

Hi Bluesky
As size5 mentioned, a charging order is a method used by creditors to effectively turn an unsecured debt into a secured debt on your property.

Thanks

Hi Declan,

How does this happen though?

In my case one of my creditors is HSBC with whom I have a hefty outstanding loan. I believe this is an unsecured loan - can a charging order be applied without my consent?

My IVA proposal is being prepared with HSBC as one of my creditors. In fact they are the largest.

A charging order is a remedy available to a creditor who has previously obtained judgment on a debt owed.
The creditor makes an application to the court for an interim charging order. On receipt of the application the court sets a hearing date and the charge is registered on the your property at Land registry, without your consent. On the date of the hearing, unless you can persuade the court otherwise , the court orders that the interim charging order is to be converted in to a final charging order. Additionally, at the request of the creditor, the court may order you to make a regular monthly payment

In preparing your IVA proposal, you will need to advise your IP immediately. They will then considering making an interim order to stop the bank proceeding with the charging order.

Thanks

To enable the application for the charging order to be accepted, you do have to be in breach of your credit agreement and therefore your consent is not required - although charging orders can be granted by consent as a method of negotiating with creditors.