Enforcement of Judgments

Question 1

Does the court AUTOMATICALLY enforce Judgments?

Answer 1

NO - must apply to court

Question 2

To enforce a Judgment, what 2 options does a creditor have to find more information about the debtor’s financial circumstances?

Answer 2

(1) ENQUIRY AGENT - instruct an enquiry agent
(2) ORDER TO OBTAIN INFORMATION - court order - attend court & questioned by officer of court

Question 3

What are the 4 main methods a Judgment can be enforced by?

Answer 3

(1) Taking control of goods
(2) Charging order
(3) Third party debt order
(4) Attachment of earnings order

Question 4

How does ‘Taking control of goods’ work? 3 steps

Answer 4

(1) Enforcement officer seizes goods
(2) Sells goods
(3) Proceeds used pay debt

Question 5

What 3 types of an items CANNOT be seized in ‘Taking Control of Goods’ by the enforcement officer?

Answer 5

(1) OWNED / INTEREST IN by another person
(2) Basic DOMESTIC ITEMS (e.g. clothes, furniture_
(3) TOOLS OF TRADE

Question 6

When should ‘Taking Control Of Goods’ be used to enforce a Judgment on the debtor?

Answer 6

Moveable assets (e.g. car, stock)

Question 7

What type of Order must be applied to for ‘Taking Control Of Goods’ for:
(1) County Court
(2) High Court

Answer 7

(1) Warrant of Control
(2) Writ of Control

Question 8

In which court should a ‘Taking Control Of Goods’ Order (i.e. warrant or writ of control) be applied to for a debt:
(a) less than £600
(b) £600 - £5,000
(c) More than £5,000

Answer 8

(a) County Court
(b) Creditor CHOICE County or High
(c) High Court

Question 9

(1) When should a ‘Charging Order’ be used to enforce a Judgment on the debtor?
(2) What is the exception to (1)?

Answer 9

(1) Land
(2) UNLESS > 1 charges (e.g. mortgage) on land

Question 10

(a) How does a ‘Charging Order’ work? 2 components.
(b) Following the granting of a ‘Charging Order’, what can be applied to from the court and what is the effect of this?

Answer 10

(a)
(1) ‘Charge’ taken over land
(2) Debt paid from proceeds when land is sold

(b) ORDER FOR SALE (of property) - force the property to be sold to reclaim debt

Question 11

(1) When should a ‘Third Party Debt Order’ be used to enforce a Judgment on the debtor?
(2) What are 2 examples of this?
(3) How does the Order work?

Answer 11

(1) DEBTOR owed money by a THIRD PARTY

(2)
(a) Bank Account (in credit)
(b) Business debt

(3) Third Party transfers £ DIRECTLY to CREDITOR

Question 12

Can a ‘Third Party Debt Order’ be used on a joint bank account?

Answer 12

No

Question 13

(1) How does an ‘Attachment of Earnings Order’ work?
(2) If a Debtor moves job, what must be made?

Answer 13

(1) % Debtor’s SALARY paid to COURT who pays to CREDITOR
(2) New application

Question 14

What court(s) issue:
(1) Taking control of goods Order
(2) Charging Order
(3) Third-party Debt Order
(4) Attachment of Earnings Order

Answer 14

(1) County or High
(2) County
(3) County
(4) County

Question 15

What Order to enforce a Judgment should be used for:
(1) Debtor owns LAND
(2) Debtor has money in a BANK ACCOUNT (in credit)
(3) Debtor has MOVEABLE ASSETS (e.g. car, stock)
(4) Debtor is in EMPLOYMENT

Answer 15

(1) Charging Order
(2) Third-Party Debt Order
(3) Taking Control of Goods Order (High Court WRIT OR County Court WARRANT)
(4) Attachment of Earnings Order