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INC Law
INC Law, Solicitor-Advocate
Category: Law
Satisfied Customers: 15909
Experience:  LL.B, LPC, LL.M, Pg.Dip, Solicitor-Advocate. UK Practising Certificate issued by SRA., DIFC Courts Registered (Dubai)
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Can you put a fixed charge over an asset that was purchased

Customer Question

Can you put a fixed charge over an asset that was purchased outright?
JA: Where are you? It matters because laws vary by location.
Customer: England
JA: What steps have you taken so far?
Customer: none. Someone told me that you can but it doesn’t seem logical to me
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: No
Submitted: 21 days ago.
Category: Law
Expert:  INC Law replied 21 days ago.

Hi,

Thank you for your query. I am a Solicitor-Advocate in the UK and will be assisting you with your question today.

Kindly explain the situation further.

Customer: replied 20 days ago.
W are setting up a a business and a piece of equipment is being transferred from another company as an asset but also as a creditor as it is intended that we will pay for it in the future. I understand that a fixed charge can be put on this so that if the company goes into liquidation then that debt will be paid by passing title to the equipment back to the business that is owed the money for it. However, my colleague believes we can do the same thing with a new piece of equipment that we are purchasing. I don't think that is the case, can you confirm?
Expert:  INC Law replied 20 days ago.

Hi,

Possibly yes you can. Can you provide more details of the equipment you are purchasing and how the transaction is structured

Expert:  INC Law replied 18 days ago.

Hi,

The fixed charge would be secured over the asset and registered at Companoes House.

I hope this answers your question.  If you have any further questions, please do not hesitate to ask.

Many thanks