Tribunals, Courts and Enforcement Bill [HL]

The advantage is fairly clear-cut. The instalment order which may be agreed between the parties is being met. Let us assume that the person is pretty impoverished and can afford to pay only £20 a month out of their income. The creditor may say, ““That is too slow. You are paying your £20 a month. Although I have agreed to that, I am not satisfied. I am now going to apply to the court for a charging order on your home. That will secure me against the whole value of the debt and it will also be held in terrorem over you to make sure that you pay the instalments””.