Disputes Resolution 10: Enforcement of Money Orders

Question 1

Is interest payable on court judgement? When?

Answer 1

Interest Provision
Judgements carry interest running from date of judgement, in addition to interest court awards on value of claim as part as judgement

High Court
- 8% pa

County Court
- 8%
- only if above £5k
- if OVER £600 can transfer to High Court (so interest does apply)

Question 2

What is an Oral Examination?

Answer 2

Creditor (winning party) can apply for order requiring debtor to attend examination in court to provide info on their means and assets. Useful to find out best method of enforcement.

Question 3

What is the process for an oral examination? What are consequences for not attending?

Answer 3

• personal service on debtor (by creditor) 14 days before oral examination
• creditor to file affidavit 2 days before hearing providing details of service and stating how much is outstanding
• failure to attend = judge may make committal order

Question 4

Who can take control of good to enforce money order? What is needed?

Answer 4

Who
- high court enforcement officer
- count court enforcement agent

Need
- Writ of Control (high Court)
- Warrant of Control (county court)

Question 5

How to get a Writ of control or Warrant of control

Answer 5

Writ
- creditor file request to execute judgment
- including copy of judgment and any order granting permission
- Court issues Writ and send to officer

Warrant
- creditor to certify amount due
- court to seal order and send it to enforcement agent

Question 6

Procedure for Taking Control of Goods

Answer 6

• writ / warrant granted
• creditor to give debtor 7 days notice of intention to take goods
• taking goods must be in 12 months of notice
• agents can only enter stated address
• agents to provide inventory of goods seized
• agents to sell goods within 7 days to satisfy debt

Question 7

What goods cannot t be seized in a Control of Goods

Answer 7

• equipment of use of trade
• household items for basic domestic needs

Question 8

What is a Controlled Goods Agreement

Answer 8

• debtor can retain custody of goods on understanding that enforcement officer is taking control of them
• debtor cannot dispose of them before debt is paid

Question 9

What is a Third Party Debt Order?

Answer 9

Creditor can obtain order that 3rd party (ie debtors bank) pays money to them instead of debtor

Can apply in commercial cases where debtor is owed money by 3rd party, or in regards to debtors bank

Question 10

What is a Charging Order on Land? Is this limited?

Answer 10

Creditor may obtain charge on debtors property

Ranks as equitable mortgage (gives creditor right to apply for order to sell land)

Can apply even if land is in joint ownership

Question 11

Enforcing money orders: What is an Attachment of Earnings and when can it be used?

Answer 11

Only for County Court and only against individuals

If debtor is in regular employment this compels employer to make regular deductions from earnings and pay them into court.

Once made either party can apply on notice for terms to be reconsidered

Question 12

Meathods of enforcement in other countries

Answer 12

Inside EU
- if contract stipulates English legal system to be used, creditor can issue claim in UK

Outside EU
- if reciprocal agreement creditor can trace debt and enforce claim there (WITH COURTS PERMISSION)
- otherwise very difficult

Question 13

Can enforcement methods be used together

Answer 13

Yes

Exception
- permission of court to enforce control of goods while an attachment of earning order is in force

Freezing order may also be used if creditor believes debtor is going to dispose of their assets

Question 14

Is there a minimum amount needed to enforce judgments (high court vs county court)?

Answer 14

High court
- £600

County Court
- no

Question 15

Is county court claim is under £5k is there a way to claim interest?

Answer 15

Can transfer it to High Court for enforcement if OVER £600