Charging orders survive bankruptcy
A recent decision will come as some relief to creditors who have benefit of a charging order.
In Nationwide Building Society v Wright & Another , the Court of Appeal held that a charging order could not be set aside solely because of the subsequent bankruptcy of the landowner debtor.
Where a charging order is executed before a final bankruptcy order is made, the party with the benefit of the charging order will not be deprived of his security solely as a result of the bankruptcy order. The court found that there would be a need for some additional reason before it would exercise its discretion to set aside the charging order.
If you need clear and pragmatic legal advice, we’re here to help so please get in touch.