Creditors can now secure a debtor’s property against unsecured debts as low as £1,000 following new regulations on charging orders which came into effect on 6th April.
A Judgment can be secured by a Charging Order over Land or Shares, following implementation of the Courts, Tribunals and Enforcement Act 2007. This allows creditors with Judgments payable by instalments to secure the Judgment by a Charging Order when previously this could only be achieved if the instalment Judgment was in arrears. The Court still retain discretion regarding the granting of the Order.
The Regulations set a £1,000 minimum threshold for applications for orders for sale in relation to charging orders made to enforce payment under a “regulated agreement” (defined as a consumer credit agreement or a consumer hire agreement under section 189(1) of the Consumer Credit Act 1974). The Regulations will only apply to applications made on or after 6 April 2013.
This is good news for creditors who accept instalments and can now seek additional security where long term instalments are accepted.
For further advice please contact our Commercial Recoveries team on 01494 478660.