Charging Order

A court order that secures a judgement debt against a debtor's property or other assets such as shares or beneficial interests. Once made final, the charging order converts an unsecured debt into a secured debt, giving the creditor priority over unsecured creditors on any sale of the charged asset.

In practice

The creditor applies to the court for an interim charging order, which is then served on the debtor. If the debtor does not successfully oppose it, the order is made final. The creditor can then apply for an order for sale to force the property to be sold, though courts exercise discretion and may refuse where the debt is small relative to the property value.