1.14 Enforcement of Money Judgments Flashcards
What is the procedure for enforcement of judgments/orders?
Judgment Creditor
- Entitled to enforce judgment/order
- Bear cost and time risk
Judgment order
- NOT automatic
- Registered for enforcement
- Ordered to be enforced
- Give permission to enforce
Judgment debtor
What are oral examinations required for? What are the alternatives? What is required? What may the court grant?
1) Creditor applies for order > Obtain Debtor’s info (prescribed form)
- Alternatively > Instruct enquiry agent
- Alternatively > Search insolvency register/Land Registry/Attachment of Earnings Index/Register of Judgments
2) Served on Debtor to attend court at least 14 days before hearing
3) Creditor to pay Debtor’s reasonable travel expenses
4) Court may order;
- Debtor to attend court office > Answer qs orally (assets/means)
- Judge to make committal order
What interim remedies may courts make to mitigate the risk of dissipating assets?
Order > Detain/Custody/Preserve relevant property
Freezing injunction
- Restrain removing assets from jx
- Restrain handling assets in jx/other jx
What is the procedure for warrant/writ of control?
1) Application form
- Prescribed form
- Court permission (6 years elapsed since debt judgment/Debtor deceased)
- Debtor not paid ebts when due/instalments due under judgment
2) Creditor’s application
- Crown Court > Warrant of control => Bailiff (enforcement agent) takes goods
- High Court > Writ of control (debt > £5,000) => Enforcement officer (enforcement agent) takes goods
3) Exempt goods
- NOT owned by Debtor
- Necessary for Debtor’s use > In course of employment/trade (=< £1,350)
- Personal goods > Satisfy Debtor’s + household members’ domestic needs
- Property > Occupied by Debtor/TP (only/main home)
4) Enforcement
- Notice of enforcement => Debtor
- At least 7 days before Enforcement Agent takes control of goods
- UNLESS likely to be dissipated
5) Securing goods from Debtor to Enforcement Agent
- Secure goods on premises where found
- Remove goods > Secure elsewhere
- Enter controlled goods judgment w/ Debtor
6) Result
- Debtor NOT paid debts => Enforcement Agent can remove goods => Sell goods after 7 days’ notice given to Debtor > Public auction sale > Best price reasonably obtainable
- Debtor paid debts in full => Release goods
What is the procedure for third party debt orders?
1) Application form
- Prescribed form
- Debtor did NOT pay debts when due/instalments due under judgment
2) Hearing
- Judge deals w app (NO hearing) > Interim TP debt order made
- At least 28 days after > Hearing
3) Court’s options
Grants TP debt order
- TP pays Creditor > Monies (TP owes to Debtor > Satisfy Debtor’s debt to Creditor + Creditor’s app costs)
- Includes rent/judgment debt
- NOT include future debts/debts owed jointly to another party/salaries
Discharge interim debt + dismiss app
4) Debtor/TP may object
- File + serve written evidence re objection => Other parties ASAP (at least 3 days before hearing)
What is the procedure for charging orders?
1) Application
- Prescribed form
- County Court Money Claims Centre
- Creditor files Certificate of Service + Statement of amount currently due (at least 2 days before final hearing)
2) Hearing
- Court to prove why order protection required
- Factors include Debtor’s conduct, debt likely paid otherwise, amount owed to Creditor
- Court’s options > Interim order, Final Order (if interim order rejected > hearing), discharge interim order and dismiss app
3) Charging order
- Debtor’s interest in certain property (land/securities/dividends in Debtor’s Co owed to Debtor)
- Notice of intended sale > Creditor
4) Order for sale
- Claim (Charging Order + WS) includes sold property, amount due at issued date and CO date, Debtor’s title to property, parties or creditors w interest, estimate of property value
- UNLESS Debtor pays by specified date
What is the procedure for attachment of earnings?
1) Court serves application on Debtor
- Certificate of monies remaining due under judgment
- Whole/Part of instalment due remains unpaid
2) Debtor must satisfy judgment/provide employment details to court (within 8 days)
- Debtor responds => Court to review statement of means + decide Debtor’s salary reduction w/o hearing
- Debtor NOT respond => Personally served w statement of means to court + warning re continued disobedience
- Debtor still NOT respond => Personally served w statement of means to court + pay debt/attend court showing good reason why no imprisonment required (max. 14 days + fine)
3) Attachment of earnings
- Debtor’s employer to pay Debtor’s salary/earnings proportion to Court (until Debtor’s debt paid in full)
- Wages/Salary (fees/bonus/overtime/commission)
- Pension
- Sick pay (statutory)
- NOT debt > £50
UNLESS debt > £5,000 => County Court Admin Order?
What are creditor’s options re liquidation?
Bankruptcy
- Debtor owes +£5,000
Co’s WU
- Debtor owes +£750
Serve statutory demand on Debtor
- Cheaper option
Insolvency
- UNLESS D’s liabilities > D’s assets => NOT recoverable
How may judgments be enforced overseas?
1) Certificate registered (Schedule 6, Civil Jurisdiction and Judgments Act 1982)
2) Overseas national law applies
3) Overseas court has same powers as domestic court
How may judgments be enforced in Europe?
Applicable laws
- Proceedings before 10 Jan 2015 => 2001 Brussels Regulation
- Proceedings on/after 10 Jan 2015 => Recast Brussels Regulation
- Enforce in certain MS => Brussels Convention
- Enforce in Ireland/Norway/Switz => 2007 Lugano Convention
Contested judgment
- Defence filed > Trial > Judgment secured
- Foreign court recognises UK judgment => Follow its enforcement procedure
- Foreign court NOT recognise UK judgment => Issue new proceedings
Uncontested judgment
- Defendant admitted debt/agreed to judgment by consent/not file defence/filed defence but NOT attend hearing > Trial > Judgment secured
- Apply for EEO > Master/District judge (simply, quick, cheaper than contested judgment)
- Court sends EEO certificate > Enforcing party
- Enforcing party > Enforces judgment in EU MS
