Enforcement of Money Judgements

Question 1

what can a successful party do if the unsuccessful party has not complied with a judgement against it?

Answer 1

issue enforcement proceedings (but the debt must be due i.e., time specified in judgement to pay elapsed)

Question 2

is there a limitation on which court the judgement creditor can enforce the judgement in?

Answer 2

sums of 5,000 or more must be enforced in the High Court

Question 3

what is the first consideration for the judgement creditor looking to enforce a judgement?

Answer 3

investigate the judgement debtor’s means - to discover e.g.,:
- is judgement debtor even able to pay?
- if their assets are located abroad
- if their assets are jointly held with someone else

Question 4

what can a judgement creditor do to investigate the debtor’s means?

Answer 4

1. apply for an order to obtain information
2. employ enquiry agents = like PIs - expensive and ensure they are reputable
3. make company searches at Companies House (of annual accounts - shows solvency, assets, and charges on assets)
4. search registers:
   - Land Registry = shows charges against property and beneficial title
   - Individual Insolvency Register = shows bankruptcy and IVAs
   - Attachment of Earnings Order Index = shows debtors with attachment of earnings orders
   - Register of Judgements, Orders and Fines = shows D’s other unsatisfied judgements

Question 5

if the unsuccessful opponent was funded by legal aid, what can you enforce or recover from them?

Answer 5

cannot recover costs and may not recover damages

Question 6

what is an order to obtain information?

Answer 6

• order requiring judgement debtor to attend court and directly give info about their assets
• order to attend court must be served personally on debtor at least 14 days before the hearing
• the order contains a penal order = prisoned or fined if they do not comply

Question 7

how do you enforce an English judgement in a foreign country because the debtor has assets located abroad?

Answer 7

1. see if a regime, convention, or treaty applies
   otherwise
2. if following common law: enforce under the common law of that country

Question 8

how do you enforce an English judgement in a country with common law?

Answer 8

1. see if a regime, convention, or treaty applies
   otherwise
2. obtain a judgement from an E&W court to enforce the foreign judgement here = can only be done if the judgement is final and there is no appeal possible in the foreign court

Question 9

what are the 5 methods of enforcing money judgements?

Answer 9

1. taking control of goods (via writs / warrants)
2. third party debt orders
3. charging order
4. attachments of earnings order (Country Court only)
5. Insolvency / Bankruptcy proceedings

Question 10

what is a third party debt order? when is it appropriate?

Answer 10

• where the debtor is owed money by a third party in E&W, the order requires a third party to pay the creditor some or all of the debt owed to the debtor by the third party
• appropriate where debtor has cash in a sole bank account or trade debts

Question 11

what is the procedure to obtain a third party debt order?

Answer 11

1. Interim Order = made on the third party without making notice to the debtor - preventing third party from paying debtor further
2. Final Order = interim order is then served on debtor before a hearing where debtor will be heard and court decides whether to make the final order

Question 12

what is a charging order? what are the benefits vs downsides?

Answer 12

• charging order = charge taken over land which secures a judgement debt which will remain in place until the property is sold by the debtor and the debt is paid using the sale proceeds
• benefits = appropriate where the debtor solely owns land which does not already have a charge
• downsides = charge does not produce money of itself; creditor must wait until an order for sale is subsequent sought

Question 13

what is the procedure to obtain a charging order?

Answer 13

1. obtain an interim charging order
2. obtain a final charging order = charging order attached to the land
3. order for sale = for funds to be realised

Question 14

what is an attachment of earnings order? when will it be available?

Answer 14

debtor’s salary will have deductions made by debtor’s employer which will be paid into court for transmission directly to the creditor

only available:
- in the County Court (judgement must be transferred if in High Court)
- if judgement debt is at least 50 GBP

Question 15

what is the procedure for an attachment of earnings order?

Answer 15

1. creditor files application and serves it on the debtor
2. debtor completes and files a reply
3. court makes an order without parties attending
4. order served on debtor and debtor’s employer who makes deductions and pays them into court

Question 16

what are writs / warranties of control? what are the benefits of this method of enforcement?

Answer 16

• taking control of goods = an enforcement officer seizes a debtor’s goods and sells them to use the proceeds of sale to satisfy the judgement debt and expenses
• benefits = quick and simple; good if debtor has goods which can be taken and sold off (if solely owned and no other creditor has a higher rank)

Question 17

what goods cannot be taken control of by a writ or warrant of control?

Answer 17

1. tools of debtor’s trade up to an aggregate value of 1,350
2. basic domestic items = clothing, bedding, furniture, essential household items

Question 18

in which court can a judgement creditor enforce taking control of goods in?

Answer 18

• outstanding debt up to 600 = Country Court
• outstanding debt between 600 and 5000 = High Court or County Court
• outstanding debt more than 5000 = High Court

Question 19

what is the process to apply for taking control of goods?

Answer 19

1. creditor requests the writ (High Court) or warrant (County Court)
2. writ / warrant sent to enforcement officer = gives them authority to seize and sell goods
3. EO gives debtor 7 clear days notice before taking control of goods
4. either:
   - EO can enter premises to secure the goods using reasonable force (not against persons) OR
   - EO can enter an agreement with the debtor to retain custody of their goods until they pay as a last chance to pay)
5. EO must sell goods for the best price = usually by public auction; any surplus to the debtor

Question 20

when can insolvency proceedings be issued against an individual vs company for failing to satisfy a judgement debt?

Answer 20

• individual bankruptcy = judgement debt is more than 5000
• company winding up = judgement debt is more than 750