When Might an Interim Charging Order Become Final Following an Intervening Insolvency?

Joevondeep Kullar of Squire Patton Boggs explains that a court may, in rare and exceptional circumstances, allow an interim charging order to be made final despite an intervening bankruptcy where the creditor acted promptly, the debtor used insolvency tactically, and other creditors faced no real prejudice, justifying a departure from strict pari passu treatment—a discretionary approach that matters for liquidations because of the parallel provision in s183(2)(c) of the Insolvency Act 1986.

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