C

Charge

In terms related to insolvency matters, a charge may be put on a property for example, when the owner does have outstanding secured debts. More specifically, if the owner/s default on the secured loan, a charge is put on the property, the creditor/s may recuperate their losses when that property is being sold.

It is very important to note that if there is both a mortgage existent and another type of secured loan and the owner defaults on both, first in line to recuperate his loss is the mortgagor. Only after the mortgagor recuperates the loss, might the other creditor pursue to recuperate his.

If a charging order is being issued against a debtor, that doesn't automatically mean that the owner has to sell the property in order to pay back the creditor/s. An application for charging order on property/land can be done by completing a form (N379). It is possible to pursue a charging order on securities as well, such as shares or certain stocks.

A legal charge is never being issued against a property, unless the owner seriously defaults on hi/her mortgage payments. In order to avoid repossession, or any type of charges being put on one's property, it is strongly advisable that debtors keep with all the required payments for a secured loan/ mortgage.