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Charging Order

Case Particulars

Company client owed £5000 by another company for goods and services, over two invoices which were 2-3 months overdue.  7-day Late Payment Interest Notices were sent for each invoice, claiming the invoice balance plus late payment compensation and interest at 8.25%.  The debtor responded late seeking further time to pay because they were seeking alternative finance or maybe insolvency. 

Prior to issuing a small claim we obtained Title Views from the Land Registry and confirmed a title owned by the debtor.

Small claim was issued, and the debtor failed to respond to the claim and Judgment in default was awarded.

Decided to enforce the Judgment with a Charging Order Application, which the debtor didn’t dispute.

The Judgment debt is now secured until the debtor sells the property, and daily interest continues to accrue.

Services & Fees

7-day Late Payment Interest Notices - £25 + VAT each = £50 + VAT

Request Title Views from HMLR - £25 + VAT + £12 HMLR Fee

Commence Small Claim - £200 + VAT + £410 Court Fee (HMCTS)

Request Judgment in default - £70 + VAT

Request Official Copy of Register from HMLR – £25 + VAT + £7 HMLR fee

Application for Charging Order - £400 + VAT + £110 Court Fee

Registering Interim and final Charging Orders at HMLR - £40 HMLR fee x 2

Costs charged by Mercian Law = £770 + VAT, plus £619 disbursements = Total spend of £1389 + VAT

File Open: 13 months

The debtor had filed dormant accounts the year prior to our clients contract and were also late filing their current year accounts.  The risk was that Companies House could Strike the company from the register for late filing and the company would no longer exist.


Always credit check your customers, both old and new, and seek payment accordingly.  In this case payment on account should have been sought in advance.

Posted by Verity Grigg


Charging Order