DR - Payment and debt

Question 2

When does interest run from?

Answer 2

the date on which the judgement is given.

Question 3

When is payment due?

Answer 3

14 days from the date of the order

Question 4

What is the Debt Respite Scheme?

Answer 4

The Scheme allows
- an individual debtor (not a company)
- to approach a debt advice provider (which might be a local authority)
- to ask for ‘breathing space’ of 60 days - on the basis that they are unlikely to be able to repay their debts.
- If the debt advice provider considers it appropriate then they can start a breathing space via the insolvency service, which then notifies the debtor’s creditors.

Question 5

What happens if a Debt Respite Scheme notification is given?

Answer 5

During the breathing space period:

• all collection and contact with the debtor requesting payment must stop (unless the court gives permission).
• Unless the court gives a creditor permission to continue, the court must also make sure any action to enforce a court order or judgment about a breathing space debt stops during the breathing space.

Question 6

What sorts of cases can’t be part of the Debt Respite Scheme?

Answer 6

Any judgment for damages for death or personal injury caused to someone else is excluded from the scheme.

Question 7

How does one get information about a judgement debtor?

Answer 7

Using an Order to obtain information about a judgement debtor.

Question 8

Does notice need to be served on the defendant to get a Order to obtain information about a judgement debtor?

Answer 8

No

Question 9

What wording must be contained in a Order to obtain information about a judgement debtor

Answer 9

The order must contain a ‘penal notice’, stating:

‘If you the within-named [ ] do not comply with this order you may be held to be in contempt of court and imprisoned or fined, or your assets may be seized’

Question 10

How is a Order to obtain information about a judgement debtor to be served?

Answer 10

Unless the court says otherwise, it must be served personally on the person ordered to attend court

Question 11

When must an Order to obtain information about a judgement debtor be served?

Answer 11

Not less than 14 days before the hearing

Question 12

What is the effect of a Order to obtain information about a judgement debtor?

Answer 12

The judgment debtor must then attend court and produce any documents referred to in the order, and answer any questions asked of them on oath

Question 13

What happens if the judgement debtor fails to attend court or does not comply?

Answer 13

The matter will be referred to a judge who may make an order for the judgment debtor’s committal, as set out in the penal notice.