Enforcement Flashcards
Describe the ultimate objective of litigation.
The ultimate objective throughout litigation is to succeed and obtain a judgment against the other party.
How should a judgment creditor proceed if the debtor’s assets are difficult to enforce against?
The judgment creditor can apply to the court for an order to obtain information from the judgment debtor, requiring them to attend court and disclose details about their assets.
What must be verified about the assets intended for enforcement against a debtor?
It is essential to ensure that the assets belong to the debtor and are not leased or jointly held with another person who may have an overriding interest.
Define ‘oral examination of a debtor’.
The ‘oral examination of a debtor’ is a legal procedure where a judgment creditor can require a judgment debtor to attend court to provide information regarding their financial situation and assets to facilitate the enforcement of a judgment.
Define the contents of the order related to questioning a judgment debtor.
The order must contain a ‘penal notice’ stating that if the named individual does not comply with the order, they may be held in contempt of court, imprisoned, fined, or have their assets seized (CPR 71.2(7)).
Describe the requirement for serving an order to attend court.
The order to attend court must be served personally on the person ordered to attend not less than 14 days before the hearing, unless the court orders otherwise (CPR 71.3(1)).
Explain the consequences of refusing to answer questions in court.
Refusing to answer questions during the court hearing may lead to the matter being referred to a judge, who can order the judgment debtor’s committal.
Describe the main methods of enforcement of money judgments.
The main methods include writs/warrants of control, third party debt orders, charging orders, and attachment of earnings orders.
How can a judgment creditor enforce a money judgment?
A judgment creditor can use any available method of enforcement, including multiple methods simultaneously or sequentially, until the judgment debt is fully paid.
What are third party debt orders used for?
Third party debt orders are used to freeze and seize money owed to the debtor by a third party, such as a bank or employer, to satisfy a money judgment.
What is an attachment of earnings order?
An attachment of earnings order is a court order that directs an employer to deduct money directly from a debtor’s wages to pay off a judgment debt.
Describe the process required to enforce a High Court judgment using an Attachment of Earnings Order.
A claimant must apply to transfer the proceedings to the County Court, as Attachment of Earnings Orders are only available in the County Court.
How does the enforcement of judgments differ based on the amount involved?
Sums of £5,000 or more must be enforced in the High Court, while sums less than £600 or arising from agreements regulated by the Consumer Credit Act 1974 must be enforced in the County Court.
Describe the initial source of information about the opponent in a debtor investigation.
The initial source of information is often the client, who may have detailed knowledge of their counterparty due to prior business interactions and shared industry experience.
How can a lawyer gather information about a debtor’s means?
A lawyer can gather information by conducting a company search, applying for official copies from the Land Registry, searching relevant registers, and instructing an enquiry agent to report.
What is the purpose of updating investigations at the end of a legal action?
The purpose is to determine the most effective method of enforcement after obtaining a judgment.
Define the role of an enquiry agent in debtor investigations.
An enquiry agent is instructed to report on the debtor’s means and circumstances, providing additional insights that may not be readily available through other sources.
What additional investigations might be conducted post-judgment?
Additional investigations may include assessing the debtor’s assets and financial situation to decide on the best enforcement methods.
List some methods a lawyer might use to investigate a debtor’s financial situation.
Methods include conducting company searches, checking land ownership through the Land Registry, searching relevant registers, and hiring enquiry agents.
Describe the role of enquiry agents.
Enquiry agents are private investigators who procure extensive information on individuals or companies upon request, often through various means.
List the types of information accessible through company searches.
Company searches provide access to annual accounts, general solvency, assets, and information on whether assets are charged.
Describe the purpose of the Land Charges Registry.
The Land Charges Registry records restrictions or prohibitions on the use of a property and any charges against it, helping to determine if there is equity in a debtor’s property and the feasibility of an order for sale.
How does the Individual Insolvency Register impact enforcement proceedings?
The Individual Insolvency Register lists individuals who have been made bankrupt or have Debt Relief Orders or Individual Voluntary Arrangements (IVAs), which restrict how the debtor’s assets can be distributed, affecting the effectiveness of enforcement methods.
Define the Attachment of Earnings Order Index.
The Attachment of Earnings Order Index shows the debtors against whom there are attachment of earnings orders in force, indicating potential methods for debt recovery.
