Methods of Enforcement Flashcards
What are the main methods of enforcement?
1) Taking Control of Goods
2) Third Party Debt Order
3) Charging Order
4) Attachment of Earnings Order
5) Insolvency Proceedings
When is Taking Control of Goods used?
Debtor owns valuable goods
When is Third Party Debt order used?
Money is owed to the debtor
When is a Charging Order used?
Debtor owns real property or shares
When is attachment of earnings order used?
Debtor is employed and has no assets
When is insolvency proceedings used as enforcement?
Debtor has multiple debts and can’t/won’t pay
Which court is Taking Control of Goods used in?
High Court for over £5,000; or County Court
Which court is Third Party Debt Order used in?
County Court or High Court
Which court is Charging Order used?
County Court or High Court
Which court is Attachments of Earnings Order used in?
County Court only
Which court is Insolvency Proceedings used in?
Bankruptcy Court / Chancery Division of the High Court
What are the stages of Taking Control of Goods?
Notice -> Entry -> Sale
Which goods are exempt from Taking Control of Goods?
Tools up to £1,350, basic furniture
What type of order is a Third Party Debt order?
Interim order, followed by final hearing
Which type of account can’t a third party debt order get to?
Joint accounts
What are stages of charging order?
Interim order, final order
Can Attachment of Earnings be for self-employed?
No
What could a debtor do with Attachments of Earnings which is not good for the creditor?
Might just change job
What is the difference between bankruptcy and winding up?
Bankruptcy is for individuals, winding up is for companies
What is the minimum debt for a company for winding up?
£750.00
What is the minimum debt for an individual for bankruptcy?
£5,000
What should a creditor do if a debtor has unknown assets?
Order to obtain information
Can you use more than one method simultaneously for enforcement?
Yes
What is a statutory demand in enforcement?
Notifies debtor of debt, has 21 days to pay, otherwise insolvency presumed
