Click here to learn more about our revolutionary app or download directly from one of the sources below.
property). If there are two fixed charges over one property/asset, the fixed charge that was created first will be paid back first (‘have priority’).
[See ‘Secured Creditor’, ‘Floating Charge’, ‘Crystallisation’ and ‘Debenture’.]
When a lender has a fixed charge, such as a mortgage, over a property or other assets like intellectual property or the goodwill of a business, it will usually have the power to appoint a Receiver to take control of the asset and sell it on behalf of the lender to repay its debt.
The appointment of a Fixed Charge Receiver by a secured creditor is a contractual remedy, usually without recourse to the courts. The Receiver’s primary duty is to the fixed chargeholder.
It is important to note that a Fixed Charge Receiver is not appointed under a statutory power within a piece of legislation, but under the specific terms set out in the documentation setting up a fixed charge, or mortgage deed. This document will be registered at the Land Registry, and at Companies House, if the borrower is a corporate entity.
It is likely that a Fixed Charge Receiver, could also be a LPA Receiver, and the term, LPA Receiver’ is often used for both interchangeably.
[See ‘Fixed Charge’, ‘Law of Property Act Receiver’, ‘Chargeholder’, ‘LPA Receiver’, ‘Land Registry’ and ‘Companies House’.]
An Insolvency Practitioner (IP) must be fair and transparent about the way they charge fees in respect for their expertise and work. They must provide information regarding their fees to the creditors, as stated in the Statement of Insolvency Practice 9.
Their fees can be charged on a fixed fee basis. This fee is agreed at the outset, and the IP sets out their costs in relation to the matter they are to be dealing with.
