The creditor must apply to the court to obtain an interim charging order on form N86. This must be sent either to the court which made the judgment or, if the case has subsequently been transferred to a different court, to that court. The application must demonstrate that the client is in arrears with payments due under a judgment. The creditor will also have to provide details of the client’s interest in the property to be charged and details of all other creditors known tothe creditor with their addresses, if known. Provided the papers are in order, the court will send the client a copy of form N379 and the interim charging order together with notice of the date and time of the hearing at which the court will consider making the order final. These must be sent at least 21 days prior to the hearing. Copies will also be served on such creditors as the court directs, so that they can have the opportunity to object.
The creditor will also apply to the Land Registry to register a ‘notice’ or ‘restriction’ on the property. This is a warning that an application is about to be made for a final charging order and means that if the client attempts to dispose of the property, or her/his interest in it, the creditor will be informed and will be able to object to the transaction. The Land Registry will send a copy of the registration to the client as soon as it is received. This effectively ‘blocks’ any transfer or sale of the property by the client made with the intention of avoiding the charge.
Once an interim charging order has been made against shares or other securities a ‘stop order’ will come into force. This is a court order that stops the sale or transfer of the shares and also prohibits the taking of dividends or other income from them.
