Charging Orders
Charging orders are an order from the court placed on a debtor’s property (house or land) for the payment of the moneys owed to a lender. The amount you have borrowed and it is not secured and you have not kept the repayment according to the terms and arrangement; a lender can request the court to place charging orders on your property. So that when the property is sold, borrower will have to payoff that debt first, before any of the proceeds are given to you. Generally, your unsecured loans or debts becomes secured on your property. Charging orders help lenders to recover their amount from the borrowers who have not pledged collateral.
There is rule that before a court will consider an application for charging orders, the lender must have issued county court judgements and the borrower must have failed to make repayments. If court is satisfied with the charging orders filed by the lender, borrower will receive the on a N86 form.
The form will comprise details regarding the time and date of the hearing when the judge will decide if to make a final charging orders.
You will not be forced to sell out your property, but in few extreme situations where a lender can apply to a court for force of sale. This is, however, rare and the court would have to agree on the application filed by lenders before any such order. |
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