If a creditor has been successful in obtaining a Charging Order (final) against your property they may in some circumstances (eg if any conditions or terms attached to the order have not been met) make an application to court for an Order for Sale. An Order for Sale is a court order to sell a property that is subject to a Charging Order so the debt can be paid out of the proceeds of the sale. An application to sell a property subject to a Charging Order is both serious and potentially legally complex. You should seek immediate specialist advice.
If a creditor makes an application to court for an order for sale it will require a hearing and ultimately it will be up to the court (District Judge) to decide whether to make an order for sale not the creditor.
If you receive a notice of an application for an Order for Sale it is important that you respond to it as soon as possible and within 14 days. We would strongly recommend that you seek immediate specialist legal advice or representation to attend the hearing.
A District Judge will look at all of the circumstances of the case (e.g. the history of the loan, whether there is enough equity in the property to cover the charging order and any secured loans, the impact on any other members of the household, and other factors such as disability, age, etc.).
If you are able to make an offer to repay the loan the judge may suspend the order for sale so long as the repayment is made as agreed. The judge may adjourn or suspend the order at their discretion. If an order for sale is made and not adjourned or suspended you will normally be given 28 days to pay the debt or leave your property.
If you do not pay the debt or leave the property the creditor can apply for a warrant of possession/eviction which will give the court bailiffs the power to evict you and change the locks. An order for sale can be adjourned or suspended on terms - for example on payment via installments.
If you are faced with eviction and no hope of stopping or suspending a warrant you will need to look for alternative accommodation as soon as possible. Many people believe that their Local Authority (council) will re-house them when facing eviction. This is not true in all cases due to the intentionally homeless rule or if you are not classed as a priority need.
If you are facing the possibility of possession/eviction or homelessness for any reason contact your Local Authority (council) as soon as possible and ask what they can do for you with regard to re-housing.
You have rights with regard to a homeless interview and there is a Homelessness Code of Guidance your Local Authority (council) should follow with regards to re-housing and the intentionally homeless rules etc. Make sure you know your rights and if in doubt or you are not happy about any decisions etc seek independent advice as you may be able to challenge them.
If your home is at risk and you have any doubts or are not sure about anything seek immediate independent specialist advice from a free recognised agency/solicitor (examples below)