ADR and enforcement methods

Question 1

What are the ways you can obtain information about the debtor’s financial situation? (5)

Answer 1

1. oral examination
2. the client
3. personal investigators (££)
4. company search
5. registers

Question 2

What is the best method to obtain info about the debtor’s financial situation where there is little known? When must the court order be served? What must the order contain? Can it be made w/o notice?

Answer 2

oral examination (on oath)

i. no less than 14 days before hearing
ii. penal notice
iii. yes

Question 3

What is an advantage of using TCG method?

Answer 3

Quick and simple if debtor has goods which can be sold

Question 4

Where must you issue the TCG if the debt value is up to £600? What is the document called when issued in this court?

Answer 4

County Court

Warrant of control

Question 5

Where must you issue the TCG if the debt value is more than £5000? What is the document called when issued in this court?

Answer 5

High Court

Writ of control

Question 6

How many days notice must be given to debtor before entering premises and TCG?

Answer 6

7 clear days

Question 7

What is the person called who carries out the TCG?

Answer 7

Enforcement officer

Question 8

What is a third party debt order?

Answer 8

Intercept money owed to the debtor from a third party e.g. bank account, trade debts

Question 9

What is a charging order? What is a disadvantage of this enforcement method?

Answer 9

1. court order which imposes a charge on the freehold or leasehold property of a debtor in order to secure payment of a debt
2. can be lengthy as you must make an application for order of sale after obtaining the order

Question 10

When is the attachment of earnings order most suitable? (3)

Answer 10

1. individual
2. debt not less than £50
3. earns a good salary

Question 11

Which court is the attachment of earnings order available?

Answer 11

County Court only

Question 12

What value of debt is needed to bring an insolvency petition against individual/company?

Answer 12

Individual – more than £5000

Company – more than £750

Question 13

When does a statutory demand trigger insolvency? What is an advantage of this enforcement method?

Answer 13

1. debt remains unpaid for 21 days after service
2. simple and low cost

Question 14

What are factors should the lawyer may consider when offering ADR options? (3)

Answer 14

1. Does client want to maintain working relationship?
2. Costs/time saving
3. Pre action/continuing duty of client

Question 15

What does the court consider when deciding whether to penalise party for refusal to engage in ADR? (6)

Answer 15

1. nature of the dispute
2. strength of the case
3. whether other settlement methods have been attempted
4. costs of ADR
5. time to set up and attempt ADR e.g. if it is very close to trial
6. reasonable prospect of success of ADR