What is a charging order on a property

If you receive a CCJ because of an unpaid debt, the creditor might request a Charging Order from the court to secure the debt against your home or other property you possess.

A secured debt is supported by collateral, meaning that if you fail to repay, the creditor has the right to seize assets like property to cover the debt. Common examples include mortgages and car loans.

Simply put, your creditors are saying, "You might not have the cash to pay immediately, but you own a property of value. We will use it as security to ensure we get paid eventually."

In legal terms, a charging order transforms an unsecured debt, such as a credit card or personal loan, into a secured debt by registering a charge against your property with the Land Registry. This charge remains on the property title until the debt is cleared, discharged by the court, or enforced through a sale.

How Common Are Charging Orders In The UK?

Now, it's important to understand that charging orders are not common. They are usually a last resort for debt recovery. The chance of this happening depends on the size of the debt, your other options to settle it, and how aggressively your creditors are pursuing the debt.

To put it into perspective, the latest Ministry of Justice Civil Justice Statistics show that in the quarter October to December 2024, around 5,900 charging orders were made — a notable rise compared to recent years and a sharp increase year-on-year — yet this still represents only a small fraction of the many hundreds of thousands of county court judgments issued each quarter across England and Wales. Most debts never reach this stage.

If a charging order is issued for your debt, it's important to understand what occurs next and how to proceed. Being aware of this allows you to make a well-informed decision and regain some control over the situation.

It's time to learn more about the scenarios that affect Charging Orders…

Firstly, keep in mind that not all debts will be granted a Charging Order. It really depends on when your County Court Judgment (CCJ) was made and whether you've been keeping up with your payments since then.

The law regarding Charging Orders was revised in October 2012. From that point onward, creditors can request a Charging Order even if you are keeping up with the instalments.

What you need to check is:

• The date the CCJ was granted
• Whether it was ordered “forthwith” (payable immediately) or by instalments
• Whether you have missed any payments
• The date the creditor applied for the Charging Order

CCJ Issued Before 1st October 2012

If your County Court Judgment (CCJ) was issued before 1st October 2012, the court was generally unlikely to grant a charging order request if you had been keeping up with the instalments ordered by the court. However, this doesn't apply if you've missed a deadline to pay the debt in full or if you've fallen behind on an agreed instalment plan.

This position arose from the significant case of Mercantile Credit Co Ltd v Ellis, which established that a charging order should generally not be made where payments are not in arrears, or where the judgment is payable by instalments and those instalments are being maintained.

However, it is important to note that the law changed in October 2012. This revision affected the process for handling charging order applications moving forward, not just new CCJs issued after that date. Therefore, even if your CCJ was granted before October 1, 2012, a creditor applying for a charging order after that date could still be subject to the updated legal rules framework.

If you find yourself in this situation and an interim charging order is made, make sure to attend the hearing, present clear evidence showing you've continued with your payments, and explain your position to the District Judge, referencing the principles established in the Ellis case where relevant.

So, if it's an older debt and you've been consistently making the court-ordered payments, there was traditionally strong support for your position — but the court will always look at the law as it stands at the time the charging order application is made.

CCJ Issued On Or After 1st October 2012

Once they have secured a CCJ, your creditor can apply for a Charging Order regardless of how well your repayments have been going.

This change came into effect through Section 93 of the Tribunals, Courts and Enforcement Act 2007, which amended the Charging Orders Act 1979 to allow applications even when the debtor has not defaulted on instalment payments. However, the court must still consider whether you have been maintaining your payments when deciding whether to issue the final order.

Don't worry; you still have options if that's the case. Below, we'll explain exactly what they are.

The Charging Order application involves two main stages following the initial application:

Stage one: The court grants your creditor an 'Interim Order'.
Stage two: A decision is made on whether to issue a 'Final Charging Order.'

What Is An Interim Charging Order?

In simple terms, a mark is registered with the Land Registry against the property, preventing the property from being sold without notifying the creditor and resolving the charging order.

A creditor can obtain this Interim Order without a hearing once they have been granted the CCJ, as the court will usually issue the interim order in writing before scheduling a hearing to decide whether a Final Charging Order should be made.

Your creditor must send you a copy of the Interim Order and supporting documents once it has been issued. Now, it's time for your move.

You have the right to object to the Final Charging Order. Usually, any written objection should be filed with the court at least seven days before the hearing date, if a hearing has been scheduled.

I've Received An Interim Order – What Happens Next?

First things first, don't ignore it. If you've received your copy of the Interim Order in the post and object to it, you should send your objection in writing to the court and provide a copy to the creditor.

The Interim Charging Order typically specifies the hearing date where the court will determine whether to issue a Final Charging Order. The judge will assess the information provided by both parties and decide whether to grant the Final Charging Order.

To give yourself the best chance of your objection succeeding, try to attend court and present your case, or ask the court to reschedule if you are unable to attend. If you do not attend, the judge can proceed in your absence and make a decision based on the evidence before the court.

When speaking to the judge, clearly explain any extenuating circumstances and indicate if you believe you can pay the debt quickly. Honest communication and a practical plan of action can be very helpful. While you can't alter the past, you can shape your future, so focus on giving yourself the best chance!

Under the Charging Orders Act 1979, the court must consider all the circumstances of the case and, in particular, whether any other creditor of the debtor would be 'unduly prejudiced' by the order being made. The court may also take into account the debtor’s personal circumstances.

The court can adjourn the hearing if, for example, you are in a position to repay the debt within a short period, or where a spouse, civil partner or another party claims a beneficial interest in the property.

If a judge issues a 'Final Charging Order', you generally cannot sell your property without resolving the debt owed to the creditor. In practice, most sales only go through if the charging order is paid from the sale proceeds or otherwise settled.

Once registered with the Land Registry, the charging order remains in place until the debt is fully paid, the court discharges the order, or it is enforced through a sale. There's no expiration date for a charging order in England and Wales, so it can stay on your property title for as long as the debt exists.

It is also important to note that in certain cases where the judgment debt exceeds £5,000, statutory interest may accrue at a rate of 8% annually under the County Courts Act 1984. However, this generally does not apply to most consumer credit debts regulated by the Consumer Credit Act.​

The quickest way to avoid a Final Charging Order is to settle the debt before the hearing. While this seems simple, the truth is you probably wouldn't be reading this if it were that easy.

Another option is to explain your situation to the judge and demonstrate that you are either maintaining or willing to commit to a feasible repayment plan. In some situations, the court might choose not to issue the Final Charging Order or may postpone the hearing to give you more time to repay the debt. Ultimately, the decision will depend on the specific circumstances and the evidence presented.

If All Else Fails

If the judge agrees to grant the Charging Order, you still have the opportunity to share your circumstances and ask the court to consider setting conditions that could prevent the creditor from rushing to force the sale of your home (an Order for Sale).

For example, you might explain that selling the property would lead to hardship, especially if children reside in the home. These considerations can become relevant if the creditor later applies for an Order for Sale.

It's important to note that for debts covered by the Consumer Credit Act 1974, a creditor cannot enforce a charging order through an Order for Sale if the debt is less than £1,000. This limit was introduced in April 2013 to protect people from losing their homes over relatively small debts.

When presenting your case, keep in mind that you have the right to make a reasonable and fair request. The judge is required to take into account all relevant circumstances before making a decision.

The Real Debt Guy is a qualified financial adviser and a UK debt expert. The information in this article is considered to be true and correct at the publication date.