Charging orders and CCJs

If you’ve got a county court judgment (CCJ), the creditor might be able to apply for a charging order to make sure they get back the money you owe.

In this guide, we look at charging orders in more detail. This information applies to England and Wales.

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What is a charging order?

A charging order secures debt against your home or another property you own. If you remortgage or sell the property before clearing the debt in full, money from the sale is taken to pay it.

Before a creditor can force you to sell your property, they must get an order for sale. And before they can get a charging order, they must already have a CCJ filed against you.

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What if I own the property with someone else?

If you own the property with someone else and the CCJ is in your name only, the creditor will only be able to get a charging order for your share.

When can creditors apply for a charging order?

For CCJs issued before 1 October 2012 (you can check the date on your original CCJ form), the creditor can only apply for a charging order if you:

won't pay
miss the deadline to pay
miss a payment or pay late (if you’re paying in instalments)

If the creditor applies for a charging order and you haven’t done any of these things, go to the court hearing with evidence to show that you haven’t broken the terms of your CCJ.

If you’ve missed payments but you’re able to catch up before the court hearing, the court won’t issue a charging order.

For CCJs dated after 1 October 2012, the creditor can apply for a charging order straight away, even if you haven’t missed any payments. Ignoring a CCJ may make the situation worse.

How does a charging order work?

There are two parts to the charging order application process:

Interim order – this stops you from selling your property without the creditor's knowledge

Final order – after receiving an interim order, you have 28 days to object before a decision is made to issue a final order  

When the charging order reaches the final stage, the creditor can apply for an order for sale. Once this happens, you’ll have to sell your property and the creditor will take what you owe from the money you get.

Interim charging order

An interim order is usually issued without a hearing, unless the court officer thinks the application should be looked at by a judge. Once an interim order is issued, the creditor must send you a copy within 21 days. They also have to send a copy to:

any joint owners of the property
your civil partner or spouse, even if they don’t own the property
your other creditors

The creditor will also contact the Land Registry to register a charge on your property. This means they’ll be told if you try to sell it.

A charge on your property can be removed if you repay the debt in full after getting the interim charging order.

Final charging order

When you get an interim charging order, you have 28 days to object. You’ll need to send your written objection to the creditor and the court.

Other creditors can also object. They may choose to do this as a charging order gives one creditor an unfair advantage. His is because they’re the only creditor that will benefit if you’re forced to sell your property and it may make it harder for you to pay your other debts.

There’ll be a hearing at the county court and the judge will:

consider the arguments by your creditor
consider the evidence in your objection
decide whether to issue a final charging order

The judge may also attach conditions to the charging order, making it harder or stopping the creditor from forcing a sale.

If you don’t object, a decision will be made without a hearing and you’re more likely to get a final charging order.

Stopping a final charging order

You may be able to stop a final charging order if:

the creditor didn’t send a copy of the interim order to the correct people or missed the 21-day deadline
you haven’t missed any payments – the judge may decide a charging order isn’t necessary if you’re following the terms of your CCJ
other creditors aren’t applying for a charging order
there’s little to no equity in your property – after it’s sold and you pay your mortgage, there wouldn’t be enough left to cover the debt
the people you live with and/or the joint owner would be severely affected if you were forced to sell

Make your points known in the objection letter and during the hearing. Provide as much evidence as you can to support your claim.

judges gavel with scale sitting on books

What to do once a final charging order is issued

If the judge issues a final charging order, you still have options.

You can:

apply for conditions to be attached
ask for any conditions to be amended if your circumstances change
apply for the order to be set aside

Applying for conditions on a charging order

You may ask the judge to apply conditions to a charging order to stop your creditor from forcing you to sell your home. For example, you could ask:

for the charging order to be suspended if you stick to a repayment plan
to be allowed to keep your home while your children are in school

illustration of kid with balloon on fathers shoulders

Changing the conditions on a charging order

If your charging order has conditions attached, you may apply to change them. But you must show proof there’s been a change in circumstances.

For example, you can ask the court to move the final instalment date if you’re following a repayment plan and your working hours have been cut.

Applying for a charging order to be set aside

To get a charging order set aside, you must prove that the court didn’t consider your circumstances properly. You’ll need to complete an N244 form. If you’re successful, the debt will go back to the judgment stage and your creditor must reapply to take further action.

FAQs

For further support on charging orders, including objecting and attending a court hearing, speak to an adviser at Citizens Advice.

You can look up your property on the Land Registry system. Charges are listed in part C.

A charging order doesn’t expire. The Land Registry keeps the charge on your home until the debt is paid. Once paid, you can apply for the charge to be removed.