A client entered into a contract with a business associate to lend him a substantial amount of money. Under the terms of the contact the money would be repaid after 12 months.
At the end of the 12 month period the money was not repaid and the client instructed us to recover the money. A letter of claim was sent to the debtor who failed to respond to the request for payment. Proceedings were commenced against him. He failed to file a defence with the court and judgment was entered against him.
At this point the debtor contacted us to try and negotiate a repayment plan. This was accepted by our client however the debtor failed to honour the agreement. We advised our client to proceed with enforcement. Further investigations concluded that the best way forward was either to issue a bankruptcy petition against him or secure the debt on the property with a charging order. Our client instructed us to proceed with a charging order.
An application was made to the court for an interim charging order. This was granted until a full hearing could take place before a judge. The Charging Order was registered against the debtor's house and the Land Registry Office was notified. At that hearing the judge confirmed that the order should remain and awarded the claimant interest on the debt and fixed costs. When the debtor came to sell the house he was forced to repay the debt to our client in order to discharge the Charging Order.