Enforcement Action
Once a creditor has successfully obtained a judgment order in respect of an outstanding debt, we always recommend that the creditor attempts to reach a repayment agreement with the debtor in the first instance.
If negotiation fails or the creditor has been unsuccessful in making contact with the debtor, it may become necessary to enforce the judgment debt.
There are various methods of enforcement the creditor may wish to consider (see below). However, the viability of each method depends on the debtor’s circumstances and the creditor being able to successfully trace the debtor in order to ascertain their address for service of enforcement papers.
Methods of Enforcement Action
1
Warrant (writ) of control
This process involves a bailiff being appointed to take control of goods from the debtor’s property and thereafter selling them at auction to raise sufficient funds to satisfy the judgment debt. A judgment debt of £600 and above can be transferred to the High Court for a writ to be granted. A debt of over £5,000 can only be enforced in the High Court unless the debt relates to an Agreement under the Consumer Credit Act 1974. It is worth noting that the success of this method of enforcement is dependent on the debtor having valuable goods that can be sold.
2
Third Party debt order
This method of enforcement allows the creditor to obtain the amount owed directly from a third party (usually from the debtor’s bank account). The creditor will, however, need to have all the relevant bank details in order to use this method.
3
Charging orders
This method allows the creditor to secure the judgment debt against a property owned by the debtor. Once the debt is secured against the property, the debtor will not be able to sell the property without, first, settling the charge. A charging order can thereafter be enforced by an application for an order for sale whereby the debtor is ordered to give up the property to the creditor so that it can be sold and the judgment debt satisfied.
4
Attachment of earnings
This is where the Court makes an order instructing the debtor’s employer to deduct a monthly amount (set by the court) from the debtor’s wages to satisfy the judgment debt. The employer will make the instructed amount to the court and the court will thereafter release the payment to the creditor. This means of enforcement is only feasible if the debtor is in employment.
If you are considering taking enforcement action against your tenant, we can advise you further on the various methods and discuss the most viable and cost effective option to pursue.
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