Q&As

A creditor has obtained interim and final charging orders. These affect one co-owner’s beneficial interest and have been protected by registration of two Form K restrictions against the title. The proprietor of a prior charge seeks to realise its security. If the prior chargee exercises its power of sale and the charging orders are overreached, is there anything that the creditor can do to recover its debt? The sale proceeds will not exceed the amount required to discharge the debt secured by the first charge.

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Published on LexisPSL on 24/04/2019

The following Property Disputes Q&A provides comprehensive and up to date legal information covering:

  • A creditor has obtained interim and final charging orders. These affect one co-owner’s beneficial interest and have been protected by registration of two Form K restrictions against the title. The proprietor of a prior charge seeks to realise its security. If the prior chargee exercises its power of sale and the charging orders are overreached, is there anything that the creditor can do to recover its debt? The sale proceeds will not exceed the amount required to discharge the debt secured by the first charge.

Pursuant to section 3(4) of the Charging Orders Act 1979, a charging order ‘shall have the like effect and shall be enforceable in the same courts and in the same manner as an equitable charge created by the debtor by writing under his hand’. Thus, a charging order provides, in effect, that an unpaid judgment creditor is afforded the status of an e

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