enforcement of money judgment

Question 1

Interest provision in High Court

Answer 1

All High Court judgments carry interest at 8% per annum,
running from the date of the judgment. This is in addition to
the interest the court awards on the value of the claim as part of its judgment.

Question 2

Interest in County Court

Answer 2

*Judgments under £5,000—Normally interest is not pay-
able on County Court judgments under £5,000. However,
if a judgment arises from a contractual obligation and the
contract provides for interest, that interest will be pay-
able.

*Judgments £5,000 and over—A County Court judgment
for £5,000 or more carries interest at the same rate as a
High Court judgment unless postponed. A County Court
judgment over £600 can transfer to the High Court for
enforcement.

Question 3

ORAL EXAMINATION

Answer 3

1. A judgment creditor (the ‘successful’ party) may apply for
   an order requiring a judgment debtor (the ‘losing’ party) to
   attend a court hearing to provide information about means
   and assets.
2. The judgment creditor must serve the court order personally on the judgment debtor no less than 14 days before the oral examination hearing.
3. The judgment creditor also must fle an afdavit not less than** two days** before the hear-ing, providing details of service and stating how much re-mains unpaid.
4. An officer of the court or the judgment creditor questions the judgment debtor on oath. The judge may make a committal order if the judgment debtor fails to attend. This is a useful step to ascertain what assets the debtor has and, therefore, what is likely to be the most efective method(s) of enforcement.

Question 4

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METHODS OF ENFORCEMENT
Taking Control of Goods

Answer 4

A High Court Enforcement Ofcer will enforce a judgment
registered in the High Court (the minimum amount for a High Court judgment is £600). This will also apply to judgment ob-tained in the County Court but transferred to the High Court. County Court enforcement agents must enforce claims,
remaining in the County Court.

Question 5

Writ of Control

Answer 5

In the High Court, the judgment creditor will fle a request
to execute the judgment, attaching a copy of the judgment
and any order granting permission, if required. The court will issue a ‘writ of control’, which is then forwarded to the High
Court enforcement ofcer

Question 6

Warrant of Control

Answer 6

A similar mechanism applies in the County Court. The judg-
ment creditor must certify the amount remaining due and,
once the court seals the order, it forwards it to a certifcated enforcement agent.

Question 7

Procedure forTaking Control

Answer 7

1. The creditor must give the debtor** no less than seven days’ **notice of the creditor’s intention to take control of goods.
2. This must take place** within 12 months of giving notice**.
3. The creditor’s agent can enter only the stated address and must provide an inventory of any goods seized.
4. The agent must then sell the goods within** seven days** with the proceeds used to discharge the debt plus enforcement costs.

Question 8

What Can Creditor Not Seize?

Answer 8

The creditor’s agent cannot seize equipment for use in the
debtor’s trade (such as painting equipment for a house paint-er) or household items necessary for basic domestic needs
(such as pots and pans and the like).

Question 9

Controlled Goods Agreements

Answer 9

A controlled goods agreement is an agreement that permits
the debtor to retain custody of the goods on the understand-
ing that the enforcement ofcer is taking control of them, and the debtor agrees not to dispose of them before the debt is
paid.

Question 10

THIRD-PARTY DEBT ORDER

Answer 10

Normally, a third-party debt order applies when there is a
judgment against a debtor who has money in the bank. In
this instance, the creditor obtains a third-party debt order that the bank pays the money to them instead of to the debtor.
However, it may also apply in commercial cases where the
judgment debtor is owed money by a third party, who will
then pay the debt directly to the judgment creditor.

Question 11

ATTACHMENT OF EARNINGS

Answer 11

If the judgment debtor is in regular employment, an attach-
ment of earnings order compels an employer to make regular deductions from the debtor’s earnings and then pay them
into court. It is available only in the County Court and only
against individuals. Once an order has been made, either
party is entitled to apply on notice for the terms of the order
to be reconsidered.

Question 12

USING ENFORCEMENT METHODS TOGETHER

Answer 12

There is nothing to prevent a judgment creditor using the
various methods of enforcement together. The only excep-
tion is that a party needs permission of the court to enforce
a judgment by taking control of goods while an attachment
of earnings order is in force. If a creditor suspects that the
debtor is about to dispose of their assets in order to avoid
enforcement, it may be sensible to apply for a freezing order, to freeze the judgment debtor’s assets.
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