Dispute Resolution - Enforcement of Judgments

Question 1

Judgment Creditor

Answer 1

This is the successful party

Must locate judgment-debtor’s assets:

• May instruct an enquiry agent who finds the assets
• Oral examination - applies to court for an order which is served on judgment-debtor no less than 14 days before hearing, judgment-creditor files affidavit not less than 2 days before hearing, judgment-debtor questioned on oath about assets

Question 2

Judgment debtor

Answer 2

Unsuccessful party

Question 3

Interest

Answer 3

High Court: judgments carry interest at 8% per annum

County Court:

• Interest normally not payable on judgments under £5,000 unless contractually obliged.
• Judgments over £5,000 carry interest at 8% per annum

Question 4

Methods of Enforcement

Answer 4

1. Taking control of goods: can be avoided by a controlled goods agreement
2. Third-party debt order
3. Charge on property

Question 5

Enforcement outside the jurisdiction

Answer 5

Enforcement possible only if the country has a reciprocol enforcement agreement with England and Wales

Question 6

Charging Order on Land

Answer 6

Debtor has interest in land

Creditor applies for a charge on the property - ranks as an equitable mortgage

Gives creditor right to apply for an order for sale

Question 7

Attachment of Earnings Order

Answer 7

If debtor in regular employment

Employer compelled to make deductions from a debtor’s wages and pay them into court

Only available in County Court and against individuals

Question 8

Multiple Methods of Enforcement

Answer 8

Nothing preventing multiple methods of enforcement being used together, however permission required to take control of goods where an attachment of earnings order in force