12. Enforcing Money Judgement Flashcards
How to investigate debtor’s finances?
- instruct enquiry agent (cost ££)
- court order to get info from debtor
Process for order to obtain information
- creditor file notice of application at court outlining debt owed
- personally served on debtor
- debtor attend County Court + asked Q about finances
Take Control of Goods
- reasonable force to enter
- cannot take nessecities or work items
- cannot take anthing hired
Judgement sum is less than £600
County COurt - enforced by baillifs
Judgement sum is over £600 but less than £5k
County Court or High Court
Judgement sum is over £5k
High Court (writ enforced by Enforcement Officer)
Taking control of goods - High Court process
- Creditor sends request + 2 writs to court
- Court keep a writ and send one to creditor
- Creditor send to EO + execute writ
Taking control of goods - County Court process
- Creditor request in CC
- Baillif will execute
- if not paid, seize goods + auction to sell
What is a controlled goods agreement?
Debtor agrees to pay debt owed within time period as long as goods remain on premise and not sold yet
Adv of writ/warrant
more effective (EO paid on result
Disadv of writ/warrant
Goods can have low resale value
Charging order?
Charge over land/securities + register at Land Regsitry/Land Charges Dep if unregistered
Charging order for more than £5k?
High Court, otherwise in Money Claims County Court
Charging order process
- appliction notice + draft interim order
- serve applciation and ICO on debtor in 21 days
- debtor has 14 days to reuqest review
🟦 Stage 2: Final Charging Order (FCO)
Objections must be filed within 28 days of receiving the Interim Charging Order (ICO).
If objected, the case is transferred to the debtor’s local court for a hearing.
At the hearing, the court may:
- Make a Final Charging Order,
- Discharge the ICO, or
- Order a trial on disputed issues.
🟦 Stage 3: Order for Sale
If FCO is granted, the creditor now has a legal charge on the debtor’s property.
To sell the property and recover money, the creditor must start new court proceedings for an Order for Sale.
Adv of charging order
Good if they lack liquid availabel asset
3rd party debt order
No immediate payment + may have other mortgages on property so not a priority
3rd party debt order
requiring the third party to pay the creditor sufficient monies to satisfy the judgment debt and costs
Can you enforce against joint property?
No
3rd party debt order processs?
- apply to court with notice
- judgement make interim order to freeze assets
- list hearing within 28 days
- require 3rd party to pay money
Adv of 3rd party debt order
element of surprise
Disadv of 3rd party debt order
must be in sole name + funds available
Attachement of earnings order
Redirect salary to debtor to make regular deductions and pay to court
Which court can grant Attachement of earnings order
County Court only
Attachment of earnings process
(a) Apply to the Civil National Business Centre.
(b) Court notifies debtor, who must either:
* Pay the debt, or
* File a statement of means (income & expenses).
(c) Court officer sets repayment rate based on guidelines.
* If info is unclear, a judge will decide.
* Order includes:
– Normal deduction rate (what gets paid off)
– Protected earnings rate (minimum debtor keeps to live on)
(d) Order sent to:
* Debtor,
* Creditor, and
* Employer (who deducts money from wages and can charge a small admin fee).
(e) Either party can object and ask for a hearing with a district judge.
