Enforcement Flashcards
Debt respite scheme
Gives individual debtor chance to apply for 60 days breathing space if unlikely to pay
Winner must stop all enforcement action
Enforcement methods
Taking control of goods
Charging orders
Third party debt order
Attachment of earnings order
Insolvency proceedings
Investigating debtors means
Will have taken place at outset to ensure defendant could pay
Enquiry agent - private investigator
Company search
Land charges registry - equity in property or existing charges?
Individual insolvency register
Attachment of earnings order index
Register of judgments, orders and fined
Order to obtain info from judgment creditor
Court can obtain info directly from creditor
Requires creditor to attend court and provide info about their means or any matter on which info is needed to enforce
1) applicant applies to court for order
2) order to attend court served PERSONALLY on debtor not less than 14 days before hearing
3) order must contain penal notice so penalty if not comply
4) debtor attend, produce docs and answer questions on oath
5) questioning by court officer or judge if neccessary
6) if debtor fails to attend or refuses to answer questions, matter will be referred to judge who can enforce penal noticr
Taking control of goods order
HIGH COURT only
Enforcement officer appointed to seize and sell goods to satisfy judgment and expenses
Exempt goods - tools of trade up to £1350 and domestic items
Up to £600 - county court
£600-£5000 - cc or high court
£5001+ - must use high court
Writ/warrant of control
Addressed to enforcement officer entitling them to seize goods
Must contain necessary details - eg outstanding debt
Process for taking control of goods
1) eo give advance notice - at least 7 clear days - before any attempt to size
- 12 months from date of notice
2) enter premises and secure goods - can use reasonable force on property
- not before 6am or after 9pm
- cannot take goods if child only person present
- give debtor notice explaining what is happening
3) sale of goods - for best price usually at public auction
- any surplus after judgment debt and expenses goes to debtor
Charging orders on land
Remains in place until property is sold then debt repaid out of proceeds and charge removed
Subject to any prior mortgages or charges
Charging orders on land process
1) creditor obtains interim charging order
2) court grants final charging order
3) creditor can force sale process which requires subsequent application - long process
Third party debt ordet
Can be used on money debtor has in bank or trade debts
1) creditor make application
2) third party must search and disclose info to court and judgment creditor
3) if 3p objects to order, must file and serve written evidence stating grounds
4) interim order made without notice to judgment debtor
5) interim order served on 3p
6) interim order served on debtor followed by on-notice hearing
7) court decide whether to make final order
Attachment of earnings order
Only available in COUNTY COURT
Debt must be £50 or more
Debtor’s salary will have deductions from employer which are paid into court then creditor
Insolvency proceedings
Bankrupt - issue petition if debt more than £5k
Winding up - issue petition when debt more than £750
Insolvency proceeding process
1) issue petition and present to court
2) petition served on debtor
3) court hearing to decide if order made
4) if made, debtors asserts then distributed to creditors in specific order
Statutory demand
Served on debtor prior to petition being issued
If debt remains unpaid for 21 days after service court may assume insolvency - makes bankruptcy more likely
Enforcement in which court
Less than £600 - county court
£600-£4,999 - county court or high court
£5000+ - high court
