DR - 3rd party debt order etc.

Question 1

What is a third party debt order?

Answer 1

Normally an order against the bank of the judgement debtor

Question 2

What types of bank account can’t a third party debt order be used against?

Answer 2

Joint accounts

Question 3

What is a Charging Orders on land or certain securities

Answer 3

a form of charge taken over land (or other specified assets) which secures a judgment debt

Question 4

What is the procedure for a third party debt order?

Answer 4

SEARCH
- the third party to search for and disclose information to the court and judgment creditor.

• Any third party, or judgment debtor, who objects to the making of the order must file and serve written evidence stating the grounds for the objection.

INTERIM ORDER
- an interim order to be made without notice to the judgment debtor. (This will be served on the third party first and prevents the third party from making any payment to the judgment debtor until further order.)

• followed by an on notice hearing where the judgment debtor (and third party if they wish) will be heard.

CHARGING ORDER
- The court will decide whether to make a final order requiring the third party to pay the debt to the judgment creditor directly or to discharge the interim order.

Question 5

What is the process for Charging Orders on land or certain securities

Answer 5

similar to third party order:

• an interim charging order; followed by
• a final charging order

Question 6

What is the process if the judgement creditor if they wish the land to be sold following a Charging Orders on land or certain securities?

Answer 6

They will need an ‘order for sale’.

Question 7

What is an Attachment of earnings order?

Answer 7

If the order is obtained:

a. The judgment debtor’s salary will have deductions made from it by their employer.

b. These deductions will be paid into court for onward transmission directly to the judgment creditor.

Question 8

What is the minimum debt that an Attachment to earnings can apply to?

Answer 8

£50

Question 9

What is the process for an attachment to earnings order?

Answer 9

• The judgment creditor applies by
  
  • filing an application in a standard form,
  • certifying the amount of the judgment that is outstanding and
  • paying a fee.
• The application and a reply form is served on the debtor who should complete and return the reply form to the court.
• The court may then make an order (without the attendance of either party) attaching a proportion of the judgment debtor’s earnings.

Question 10

Who is an attachment to earnings order served on?

Answer 10

• The order is served on the debtor and the judgment debtor’s employer who is required to make the appropriate deduction from the debtor’s earnings and pay it to court for onward transmission to the judgment creditor.