Charging order
Encyclopedia
A charging order, in English law
, is an order obtained from a court
or judge
by a judgment creditor, by which the property of the judgment debtor in any stocks
or funds or land stands charged with the payment of the amount for which judgment shall have been recovered, with interest and costs.
A charging order can only be obtained in respect of an ascertained sum, but this would include a sum ordered to be paid at a future date. An order can be made on stock standing in the name of a trustee in trust for the judgment debtor, or on cash in court to the credit of the judgment debtor, but not on stock held by a debtor as a trustee.
The application for a charging order is made to the appropriate court normally without notice and considered by a judge without a hearing who will normally make an interim charging order (formerly a charging order nisi) and after a subsequent hearing on notice a final charging order (formerly a charging order absolute) can be made.
In deciding whether to make a charging order the court shall consider all the circumstances and in particular any evidence as to the personal circumstances of the debtor and whether any other creditor would be likely to be unduly prejudiced.
The charging order may be made subject to conditions.
If necessary, a stop order on the fund and the dividends payable by the debtor can be obtained by the creditor to protect his interest.
A solicitor employed to prosecute any suit, matter or proceeding in any court, is entitled, on declaration of the court, to a charge for his costs upon the property recovered or preserved in such suit or proceeding. (See Rules of the Supreme Court, o. XLIX.)
As to court procedure in England & Wales see CPR
73 http://www.justice.gov.uk/civil/procrules_fin/contents/parts/part73.htm and PD73 http://www.justice.gov.uk/civil/procrules_fin/contents/practice_directions/pd_part73.htm
English law
English law is the legal system of England and Wales, and is the basis of common law legal systems used in most Commonwealth countries and the United States except Louisiana...
, is an order obtained from a court
Court
A court is a form of tribunal, often a governmental institution, with the authority to adjudicate legal disputes between parties and carry out the administration of justice in civil, criminal, and administrative matters in accordance with the rule of law...
or judge
Judge
A judge is a person who presides over court proceedings, either alone or as part of a panel of judges. The powers, functions, method of appointment, discipline, and training of judges vary widely across different jurisdictions. The judge is supposed to conduct the trial impartially and in an open...
by a judgment creditor, by which the property of the judgment debtor in any stocks
Stocks
Stocks are devices used in the medieval and colonial American times as a form of physical punishment involving public humiliation. The stocks partially immobilized its victims and they were often exposed in a public place such as the site of a market to the scorn of those who passed by...
or funds or land stands charged with the payment of the amount for which judgment shall have been recovered, with interest and costs.
United Kingdom (England and Wales)
The provisions of charging orders in England and Wales are under the Charging Orders Act 1979 (formerly under the Judgment Acts 1838 and 1840)A charging order can only be obtained in respect of an ascertained sum, but this would include a sum ordered to be paid at a future date. An order can be made on stock standing in the name of a trustee in trust for the judgment debtor, or on cash in court to the credit of the judgment debtor, but not on stock held by a debtor as a trustee.
The application for a charging order is made to the appropriate court normally without notice and considered by a judge without a hearing who will normally make an interim charging order (formerly a charging order nisi) and after a subsequent hearing on notice a final charging order (formerly a charging order absolute) can be made.
In deciding whether to make a charging order the court shall consider all the circumstances and in particular any evidence as to the personal circumstances of the debtor and whether any other creditor would be likely to be unduly prejudiced.
The charging order may be made subject to conditions.
If necessary, a stop order on the fund and the dividends payable by the debtor can be obtained by the creditor to protect his interest.
A solicitor employed to prosecute any suit, matter or proceeding in any court, is entitled, on declaration of the court, to a charge for his costs upon the property recovered or preserved in such suit or proceeding. (See Rules of the Supreme Court, o. XLIX.)
As to court procedure in England & Wales see CPR
Civil Procedure Rules 1998
The Civil Procedure Rules are the rules of civil procedure used by the Court of Appeal, High Court of Justice, and County Courts in civil cases in England and Wales...
73 http://www.justice.gov.uk/civil/procrules_fin/contents/parts/part73.htm and PD73 http://www.justice.gov.uk/civil/procrules_fin/contents/practice_directions/pd_part73.htm