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Sometimes getting to the point of obtaining a Judgment against a defendant can prove to be only half the battle. This can cause further frustration for a claimant who has done everything possible to successfully pursue a claim through the Courts.
Courts, however, will not interfere in actually making defendants pay any Judgment sums ordered. It is for claimants to carefully decide upon what might be the most appropriate method of enforcement available to get their money.
No one likes throwing good money after bad, so spending even a little time profiling the debtor can prove to be time well spent. Savvy Judgment creditors should therefore make enquiries prior to commencing enforcement action. Some practical tips and points to consider are:-
Other common methods of enforcement include:
This involves the issue of a court document called a Warrant of Control in the County Court Court and a Writ of Control in the High Court. A third party is instructed to attend the debtor’s premises to seize assets to the value of the debt plus the costs of execution. High Court Enforcement Officers (HCEO) are known to have higher collection rates than a County Court Bailiff as they have more powers to enforce. Goods can be removed and sold if the debtor fails to pay the sums due, and in most cases, the threat of seizure is sufficient to secure payment.
Money is deducted from a debtor’s earnings and paid until the Judgment is settled in full. You will need to know the name and address of the debtor’s employer and make an application for an Order that the debt is paid out of the debtor’s salary by the employer.
Sums that are in the hands of a third party known to the debtor (such as a bank account in credit) can be frozen and seized. Full details of the third party against whom the Order is sought and, in the case of a bank or building society, the sort code and account number are needed.
If the debtor owns or has an interest in a property, a claimant may apply to the Court to place a charge on the debtor’s property. A charge made under a Charging Order operates to secure the debt in much the same way as a mortgage. When the Charging Order is obtained, it should be appropriately entered at the Land Registry so that when the property comes to be sold, the process cannot complete without paying what is owed.
It is possible to attempt to recover payment of a Charging Order before a debtor sells a property voluntarily by applying to the Court to force a sale. The court has a number of factors to take into account, including the debtor’s circumstances, whether the property is a family home or a second property, and the amount of equity available etc.
For Judgments in excess of £5,000, a Judgment creditor can petition for a debtor’s bankruptcy. To be successful, it must be shown that the debtor has no reasonable prospects of paying his/her debts. The threshold for issuing a Winding Up Petition against a company is £750. Making an individual bankrupt or winding up a company is unlikely to result in recovery of the debt - the threat of doing so, however, does often lead to payment being made.
A CCJ can negatively affect the ability to get credit for up to 6 years. It is therefore important for a debtor to address this or they may find that by the time it is paid off, it will far exceed the sum awarded as interest will continue to accrue, and there will be additional costs added.
For further information on obtaining or enforcing a Judgment or advice generally, please contact: Lesley Purveur at 01636 703333 or This email address is being protected from spambots. You need JavaScript enabled to view it.
Larken & Co Solicitors is Authorised and Regulated by the Solicitors Regulation Authority - SRA Number: 53640