Charging Order - United Kingdom (England and Wales)

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 CPR73 and PD73