Glossary Of Debt Management & Financial Terms
Charging Order
This is an order, made by the court, which gives the Trustee (of the order) a legal charge upon the debtor's interest in his/her home. The charge once made absolute continues even after a debtor is discharged from bankruptcy.
This is a legal security, usually taken over a property, by a creditor. It protects against the non-payment of a debt. A common example of a charge holder is a mortgage company. Unsecured creditors can seek to improve their position, by securing their lending through obtaining a charging order over a property.
Also know as a Charge.
See also Collateral, County Court Judgment (CCJ) and Unsecured Credit.
