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Charging Order in United Kingdom

Definition of Charging Order

In accordance with the work A Dictionary of Law, this is a description of Charging Order : A court order obtained by a judgment creditor by which the judgment debtor’s property (including money, land, and shares) becomes security for the payment of the debt and interest.


Charging Order, in English law, an order obtained from a court or judge by a judgment creditor under the Judgment Acts 1838 and 1840, by which the property of the judgment debtor in any stocks or funds stands charged with the payment of the amount for which judgment shall have been recovered, with interest. A charging order can only be obtained in respect of an ascertained sum, but this would include a sum ordered to be paid at a future date. An order can be made on stock standing in the name of a trustee in trust for the judgment debtor, or on cash in court to the credit of the judgment debtor, but not on stock held by a debtor as a trustee.

The application for a charging order is usually made by motion to a divisional court, though it may be made to a judge. The effect of the order is not that of a contract to pay the debt, but merely of an instrument of charge on the shares, signed by the debtor. An interval of six months must elapse before any proceedings are taken to enforce the charge, but, it necessary, a stop order on the fund and the dividends payable by the debtor can be obtained by the creditor to protect his interest A solicitor employed to prosecute any suit, matter or proceeding in any court, is entitled, on declaration of the court, to a charge for his costs upon the property recovered or preserved in such suit or proceeding. (See Rules of the Supreme Court, o. XLIX.) (1)


Notes and References

  1. Encyclopedia Britannica (11th Edition)

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Schema Summary

  • Article Name: Charging Order
  • Author: Agostino Von Hassell
  • Description: Definition of Charging Order In accordance with the work A Dictionary of Law, this is a description of Charging Order : A [...]

This entry was last updated: November 25, 2016


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