“Charging Order”.... What's This?

Homeowners might be knowing this that by not paying some kind of debts they can face the consequence of losing their home. Now if someone is unable to pay mortgage/secured loan repaments, then the lender can take certain serious steps. To clear off the debt he can also go to court and claim repossession of your property. 

Now, what's not know to all is that the homeowners with tons of unsecured debts can also find their homes getting targeted by lenders using what is known as “Charging Order”.

What Actually is Charging Orders ?

One can say Charging Order to be a type of court order which can turn unsecured debt into a secured loan and the lender gains an interest in your property and can seize part of the proceeds of any sale in order to clear the debt.

Generally, such orders are granted only after the lender has gone through the process of obtaining a county court judgement on an unpaid debt, and the judgement still remains unsatisfied after a period of time. Now you should also know this that the issuing of charging order cannot lead to repossession.