The Family Procedure Rules 2010

[F1 CHAPTER 2 E+W CHARGING ORDERS

Textual Amendments

F1 Pt. 40 inserted (6.4.2016) by The Family Procedure (Amendment) Rules 2016 (S.I. 2016/355), rules 1(2), 8(b), Sch. 2 (with rule 9)

Scope of this Chapter E+W

40.3.   This Chapter applies to an application by a creditor for a charging order under section 1 of the 1979 Act.

Application for a charging order E+W

40.4.— (1) An application for a charging order may be made without notice.

(2) An application must be made to the family court or to the High Court, as appropriate and as specified in section 1 of the 1979 Act.

(Her Majesty’s Courts and Tribunals Service publishes information to identify the appropriate location of the family court or High Court to which an application for a charging order should be sent.)

(3) A creditor may apply for a single charging order in respect of more than one judgment or order against the same debtor.

(4) The application must—

(a) be in the form and contain the information required by Practice Direction 40A; and

(b) be verified by a statement of truth.

Interim charging order E+W

40.5.— (1) An application for a charging order will initially be dealt with by the court without a hearing.

(2) The court may make an interim charging order—

(a) imposing a charge over the debtor’s interest in the asset to which the application relates; and

(b) fixing a hearing to consider whether to make a final charging order as provided by rule 40.8.

Service of an interim charging order E+W

40.6.— (1) Copies of the interim charging order, the application and any documents filed in support of it must, not less than 21 days before the hearing, be served by the creditor on the persons listed in paragraph (3).

(2) The creditor must either—

(a) file a certificate of service in relation to each person served not less than 2 days before the hearing; or

(b) produce a certificate of service at the hearing.

(3) The persons to be served in accordance with paragraph (1) are—

(a) the debtor;

(b) if the order relates to an interest in land, any co-owner;

(c) the debtor’s spouse or civil partner (if known);

(d) such other creditors as are identified in the application or as the court directs;

(e) if the order relates to an interest under a trust, on such of the trustees as the court directs; and

(f) if the interest charged is securities, then—

(i) in the case of stock for which the Bank of England keeps the register, the Bank of England;

(ii) in the case of government stock to which sub-paragraph (f)(i) does not apply, the keeper of the register;

(iii) in the case of stock of any body incorporated within England and Wales, that body;

(iv) in the case of stock of any body incorporated outside England and Wales or of any state or territory outside the United Kingdom, which is registered in a register kept in England and Wales, the keeper of that register; and

(v) in the case of units of any unit trust in respect of which a register of the unit holders is kept in England and Wales, the keeper of that register.

Effect of interim charging order in relation to securities E+W

40.7.— (1) If a debtor disposes of their interest in any securities while they are subject to an interim charging order which has been served on them, that disposition will not, so long as that order remains in force, be valid as against the creditor.

(2) A person served under rule 40.6(3)(f) with an interim charging order relating to securities must not, unless the court gives permission—

(a) permit any transfer of any of the securities; or

(b) pay any dividend, interest or redemption payment relating to them.

(3) If a person acts in breach of paragraph (2), that person will be liable to pay to the creditor—

(a) the value of the securities transferred or the amount of the payment made (as the case may be); or

(b) if less, the amount necessary to satisfy the debt in relation to which the interim charging order was made.

Further consideration of the application E+W

40.8.— (1) If any person objects to the court making a final charging order, that person must—

(a) file; and

(b) serve on the creditor,

written evidence stating the grounds of objection, not less than 7 days before the hearing.

(2) At the hearing, the court may—

(a) make a final charging order confirming that the charge imposed by the interim charging order continues, with or without modification;

(b) discharge the interim charging order and dismiss the application;

(c) decide any issues in dispute between the parties, or between any of the parties and any other person who objects to the court making a final charging order;

(d) direct a trial of any such issues, and if necessary give directions; or

(e) make such other order as the court considers appropriate.

(3) If the court makes a final charging order which charges securities, the order must include a stop notice unless the court otherwise orders.

(Chapter 4 of this Part contains provision about stop notices.)

(4) Any order made at the hearing must be served by the creditor on all the persons on whom the interim charging order was served.

Discharge or variation of order E+W

40.9.— (1) Where an application is made to discharge or vary a charging order, the court may direct that—

(a) any interested person be joined as a party to such an application; or

(b) the application be served on any such person.

(2) An order discharging or varying a charging order must be served, by the person who applied for that order, on all the persons on whom the charging order was required to be served.]