Enforcing Judgment Flashcards
When does judgment take effect?
From the day in which it is given, or from such later date as the court may specify.
What can a judgment debtor do if they cannot pay a debt?
Apply for stay of execution.
Must give evidence of their means, and show via witness statement that they are unable to pay, or it is not expedient for the court to enforce.
What does a stay of execution do?
Judgment put on hold, provided the judgment debtor pays off the debt in installments.
What is the position in respect of interest for County Court judgments of less than £5,000?
Do not carry interest, unless provided for in a contract, or statutory interest applies under the Late Payment of Commercial Debts (Interest) Act 1998
What is the position for interest for any judgment over £5,000?
Carry interest at 8 per cent per annum under s17 Judgments Act 1839.
Interest runs from the date of judgment unless otherwise orders.
When will interest stop running for county court judgments for £5,000 or more?
If judgment debtor uses a method of enforcement (except charging order), and recovers any payment towards the debt, no interest will run during that period.
How can information be obtained about a judgment debtors financial viability?
- Some information may be in the public domain.
- An enquiry agent can be instructed.
- A freezing injunction and/or search order can be obtained.
- An application for information can be obtained under Part 71.
What is an order for information under Part 71?
Order which requires judgment debtor to attend court to be questioned on oath about their finances, and provide information about their means and assets.
What methods are there for enforcing a judgment?
- Taking Control of Goods
- Attachment of Earnings
- Charging Order
- Third Party Debt Order.
What is Taking of Control of Goods?
A warrant or writ of control is obtained from the County Court or High Court.
Enforcement officer visits premises of the judgment debtor’s premises and takes control of goods.
Debtor is required to pay judgment, or the goods are sold at public auction, and sale proceeds used to settle the debt.
What are the advantages/disadvantages of taking control of goods?
Quick and relatively inexpensive.
Most debtors will pay.
Debtor may not have sufficient assets to pay.
What is an attachment of earnings order?
Order which compels judgment debtor’s employer to make regular deductions from their earnings and pay them to the court.
What are the advantages/disadvantages of an attachment of earnings order?
Useful where debtor has no chattels or land.
Debtor will often choose to settle debt than involve their employer.
Can only be used against individuals.
Unsuitable if judgment debtor frequently changes job - delays will be caused whilst order is reinstated.
No other enforcement method against the property of the judgment debtor can be made without permission.
What is a third party debt order?
An order which requires the bank, building society or other debtor of the judgment debtor to pay the money to the judgment creditor instead of the judgment debtor.
What are the advantages/disadvantages of obtaining a third party debt order?
Discreet and very quick if there is money to satisfy the debt.
Debt is procured in cash form.
