Form K restriction for final charging order

housebuyer143

autoplay said:

And, what if we make a third party debt order application against the lawyer holding the money from the proceed of the sale.

I have read that we can serve ourself a third party debut order to go quickler before the money of the sale is given to the creditor

The purpose is to notify the creditors that the debtor has come into money so they can pursue them via alternative means. It isn't obviously as good as a final charging order. It also does inconvenience them as they can't remortgage without paying the charge. 

I believe the solicitors will issues the notice of sale to the creditors at the latest possible opportunity, like a few days before (that's what my sellers solicitor did), so that there isn't an opportunity to do this. By the time you have been notified and can do anything about it the sale monies are in the client's bank account. 

Lots of solicitors have no clue though about form K restrictions so I imagine a huge proportion of these are paid on completion.

autoplay

This means that what is said in:

https://www.brightstonelaw.co.uk/blog/restrictions-harry-peradigou/

is wrong.

What is very strange is that there is a law and no-one is entirely sure of its meaning.

housebuyer143

autoplay said:

This means that what is said in:

https://www.brightstonelaw.co.uk/blog/restrictions-harry-peradigou/

is wrong.

What is very strange is that there is a law and no-one is entirely sure of its meaning.

The article is confusing because it talks of interim charging orders and then suddenly mentions if they have a full charging order it needs to be paid from sale proceeds, which is correct. 

"The company must therefore be repaid when the property is sold by the owners. This is on the assumption that XYZ Limited obtained a Final Charging Order of course"

They are not the same thing though, so talking about both terms in literally the same paragraph/sentence is probably why it doesn't make sense. 

autoplay

An interim charging order is granted waiting that it is made final by the court and if the court refuses to make it final it should be removed from the title register of the property.

Hence, if an interim charging order is in a title register for sometime it is very likely that it is final otherwise it would been removed

I would like to know if with a restriction k the lawyer will holds from the sale proceed the money owes to the judgment creditor if the interim charging order has been made final and not only informing him of the sale

housebuyer143

autoplay said:

An interim charging order is granted waiting that it is made final by the court and if the court refuses to make it final it should be removed from the title register of the property.

Hence, if an interim charging order is in a title register for sometime it is very likely that it is final otherwise it would been removed

I would like to know if with a restriction k the lawyer will holds from the sale proceed the money owes to the judgment creditor if the interim charging order has been made final and not only informing him of the sale

If they have a final charging order then yes, they have to pay the creditor on sale and the solicitor will take the money and pay it at completion.

Interim charging orders tend to be on jointly owned property because you can't get a final charging order if the property is owned jointly. Interim charging orders don't just fall off or convert to final changing orders over time. They can only be removed by the creditor or by being overreached on the sale of the property. 

autoplay

When an interim charging order is issued it should be served on the judgment debtor within 21 days. The Judgment debtor will have 28 days to object to it. If he objects to it there will be a hearing to decide to make the interim charging order final, otherwise the court will take this decision on paper

I think we can get a final charging order if the property is jointly owned but only on the share of the property owned by the judgment debtor

There is also the case where the judgment creditor has two interim charging orders one against each of the two join-owners, in this case also the two interim charging orders could be made final

autoplay

If an interim charging order is properly served and there is objections from the judgment debtor there is no reason why a final charging order would not be granted even for jointly owned property.

I have difficulty to understand when you say that if there is a final charging order they will have to pay the creditor but not if they have an interim charging order because the purpose of an interim charging order is to prevent the sale of the property until a final charging order is granted.

Maybe the opinion of other members of forum is necessary

housebuyer143

You might find this interesting reading. It will answer all your questions. 

https://forums.moneysavingexpert.com/discussion/1839539/charging-order-the-myth

autoplay

but this is in contradiction to what you say when you say:

"If they have a final charging order then yes, they have to pay the creditor on sale and the solicitor will take the money and pay it at completion"

Maybe it will good to look also to debt recovery law and to solicitors regulation because the money from the sale does not go directly to the bank account of the judgment debtor because it goes first in the bank account of his lawyer.

Can the judgement creditor make some kind of request to the lawyer of the judgment debtors to be given the money owed to him from the proceed of the sale hold by this lawyer?

autoplay

There is something strange. If we get an order for sale the court will force the judgment debtor to sell his property and pay us the debt from the proceed of the sale

In this condition it is difficult to understand why if the judgment debtor sells voluntary his property he will not have also to pay the debt from the proceed of the sale

If the judgment debtor sell voluntary his property the things should be easier and not more difficult because there will not be any need for the judgment creditor to make a complicated application to the court for sale and there will not be any risk to have this application rejected