More and more clients are realising that a Charging Order is not the end of the Debt Recovery process - an Order for Sale of property can dramatically improve your collection rates. Incasso LLP has a wealth of experience in the Enforcement of Charging Orders and Orders for Sale. Incasso LLP acts for a number of local authorities, utility companies, financial organisations and commercial companies, facilitating Orders for Sale of properties where Charging Orders have been secured to cover unpaid debts.

Orders for Sale can be an effective enforcement method – as the process escalates in severity, responses are obtained from five key areas of the procedure;

1. Threat of application
2. Service of Interim Order
3. Hearing of final application
4. Enforcement officers attendance to repossess property
5. Sale of property - 99% of cases are currently being resolved before stage 5

Other benefits include;

• Improve cash flow
• Increase collection rates
• Reduce outstanding debtors on ledger
• Ensure restrictions are enforced in a timely manner
• Education of repeat offenders

The Judgment must first be converted into a Charging Order and registered against your debtor’s property. If there is no direction for payment by instalment, or if your debtor has defaulted on their instalments, then you are entitled to present an Order for Sale application. Theoretically you can present an Order for Sale application immediately after a Charging Order is obtained. With a limitation period following from the last action taken to recover the debt of 6 years, you can present an Order for Sale application on the basis of a Charging Order of any value. We are initially required to gather various pieces of information for the Order for Sale application. We aim to present the application to the Court within 4 weeks of receiving instructions to proceed with an Order for Sale.

Orders for Sale FAQs

Can I enforce any Judgment by way of an Order for Sale?
The Judgment must first be converted into a Charging Order and registered against your debtor’s property. If there is no direction for payment by instalment, or if your debtor has defaulted on their instalments, then you are entitled to present an Order for Sale application.

Is there a minimum time limit for presenting an Order for Sale application?
No. Theoretically you can present an Order for Sale application immediately after a Charging Order is obtained.

Is there a maximum time limit for presenting an Order for Sale application?
No.  Security will remain and can be enforced at a later date under normal circumstances.

Is there a minimum Charging Order value for presenting an Order for Sale application?
No. You can present an Order for Sale application on the basis of a Charging Order of any value

Does my debtor need to be an owner/occupier for me to enforce the Charging Order with an Order for Sale?
No. However, we would need to give notice of the Order for Sale application to the occupiers if they are not the debtors themselves. We would also need to gather a much information as possible about the occupiers of the property for the application itself and any eviction.

Case Study

To view how Charging Orders raised £500k in unpaid council tax for Enfield Borough Council, please click here.

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