Check Debt Against a Property

Are you planning to buy a property but worried about Charging Orders? You’re in the right place for answers. Every month, more than 170,000 people visit our website for advice on debt matters.

In this article, we’ll guide you on:

• How to check debt against a property.
• Understanding when a debt can be secured against your property.
• Knowing the effects of a Charging Order on your home and credit rating.
• Finding out if you can write off some debt.
• Learning about Charging Orders on jointly owned properties and how an IVA can stop a Charging Order.

Our team understands your concerns, as some of us have also faced similar situations. We know how it feels, and we are here to help.

Let’s dive in and learn more about how to navigate Charging Orders when buying a property.

How to Check Debt Against a Property

Charging order records don’t show on your credit file.

Therefore, it’s not a case of simply checking your credit record for free online.

It’s worth noting that Land Registry Title Deeds are legal documents. They prove ownership of properties together with any charges or restriction on a property.

Land Registry charging order check

The way to check a debt against property is through the Land Registry by visiting the website or using the contact information below:

• Telephone: 0300 006 0411 (English) 0300 006 0422 (Welsh)
• Email: [email protected]

» TAKE ACTION NOW: Fill out the short debt form

When Can a Debt Be Secured Against Your Property?

A creditor can only apply for a charging order if they have a CCJ issued against you. Unfortunately, mortgage arrears and charging orders often go hand-in-hand.

A charging order is serious, don’t ignore this problem as your home is at risk.

On October 1st, 2012, a change was made to when creditors can apply for a charging order. I’ll lay out the changes for you as it will affect you if the CCJ against you is issued before or after the date of the change.

Charging Order Before October 1, 2012

If you had a CCJ against you before this date, the creditor could only apply for a charging order if:

• You were unable to pay the entire debt by the deadline as ordered by the court
• You missed a repayment instalment that was set up

You should go to court if you kept up with the repayments, the creditor applies for a charging order, and the CCJ was issued before October 1st, 2012.

Present your evidence to prove you made all payments on time.

If you have missed a deadline or failed to make some payments, catch up with them all before the court date.

If you make all necessary payments, you can avoid getting a charging order at this stage.

Charging Order After October 1, 2012

A creditor can apply for a charging order immediately if the CCJ against you dates after October 1st, 2012. It doesn’t matter if you’ve kept up with the CCJ repayment plan or not.

Check the dates relating to the CCJ so you’re fully aware of the rules that apply to you.

Make a note of:

• The date the creditor applied for the CCJ
• The issue date of the CCJ
• The repayment plan set out in the CCJ

Will You Lose Your Home If You Get a Charging Order?

A charging order alone doesn’t necessarily mean you’ll lose your property.

It does mean that if you sell your home or remortgage it, you must use the money to pay the charging order debt.

To force a house sale, creditors apply to the court for an order of sale.

A Charging Order must be in place before an order of sale is awarded against you.

Once issued, the order forces the sale of your property, and the proceeds of the sale go to the creditor to clear the outstanding charging order debt.

You must attend the court hearing and seek help from debt advisors at this stage. With their help you could prevent the application of the Order of Sale.

It’s worth noting that creditors can’t get an Order of Sale if a debt and court costs are below £1000 in total, or if the debt is protected by the Consumer Credit Act.

If you’re unsure what to do, I suggest you contact a debt advisor sooner rather than later.

Understanding court orders and the consequences of them being issued is paramount to a successful outcome.

Can an IVA stop a Charging Order?

A Charging Order can’t be included in an IVA.

Nor can an IVA overturn it, but it could prevent future Charging Orders being raised against you by creditors.

That said, a Charging Order turns an unsecured debt to a secured debt. So if a Charging Order is awarded prior to an IVA, the IVA can’t overturn the Charging Order.

I have put together an IVA guide for 2022 if you wish to learn more about Individual Voluntary Arrangements as a solution to your debt.

The legal implications of a charging order against your home are serious. So it’s important to seek the help of debt advice services and not ignore any letters relating to a charging order, order of sale, or a CCJ.

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Can a Jointly Owned Property Have a Charging Order?

If you own a home jointly with someone else but the debt is solely in your name, the court can only place a charging order on your share of the property.

If the debt is in both names, the charging order is attached to the entire property.

In short, the effects of a charging order on a joint property can be far-reaching.

Glossary of terms

Charging Order – A charging order secures a debt against your property. So if you remortgage or sell your home before you settle the debt, you pay the charging order from the proceeds.

Order of Sale – An Order for sale enforces a Charging Order.

CCJ – A County Court Judgement is an order to pay a debt you owe someone/business.

IVA – An Individual Voluntary Arrangement is a legally binding agreement between a debtor and creditors.

Secured vs unsecured debt – secured debt is backed by collateral. An unsecured debt does not require collateral and therefore creditors can’t take assets if a person defaults on payments.