Charging order – in the area of Court Trials, the term refers to an order directing that a legal burden should be established on the judgment debtor’s assets (movable and immovable properties) to secure payment of the debt towards the judgment creditors. This makes the claimant 1st privileged creditor on the burdened property for the amount they are owed, and means “freezing” or “seizure” of the asset. In this way the charging order prevents the debtor from eventual release of the asset without paying what is owed to the judgment creditor. In simple words, it secures that the debtor won’t play any tricks to cheat their creditors.
In some jurisdictions the burdened asset, subject of charging order, still may be transferred towards third parties, but yet the creditor who holds the burden in their favor, is entitled to sell it anyway and collect the debt at any time.