Enforcing a Judgment Debt - Part 2
In Part 1, two methods of enforcing a Judgment debt were considered, detailed below are further enforcement methods.
Order to Obtain Information
If a Judgment debtor does not provide information or details of any assets then an application may be made to the Court for an Order to Obtain Information. The debtor will be given a date by the Court to attend to confirm what assets they have. The attendance at the Court will be under oath and the debtor will be required to disclose information relating to their employment status, details of employer and earnings, details of outgoings and any dependants, details of property owned, additional income and savings. This method is quite good at flushing out the details and often results in the debtor then making a sensible offer to pay in order to make regular payments to settle the Judgment debt.
Third Party Debt Order
This method of enforcement is used where the Judgment debtor themselves are owed money by a third party. It is often used in business transactions where the Judgment debtor is owed money specifically within the building trade. If a Third Party Debt Order is obtained then this will require the third party to pay the debt owed directly in satisfaction of the Judgment debt.
Execution against Goods (Taking Control of Goods)
This is used by the Judgment creditor in seizing goods of the debtor which can then be sold to pay off the debt. In order to use this method of enforcement assistance is required from either a County Court Bailiff or a High Court Enforcement Officer who will attend at the debtor’s premises and seize goods or sufficient goods to the value of the Judgment debt. There are restrictions as to which goods can be seized for example if you are dealing with a debtor who is self-employed then tools of the trade cannot be seized as this would result in the debtor being unable to work. Also exempt are goods which are essential to daily living i.e. beds, fridge, oven, microwave.
The above and Part 1 gives a brief insight as to the possible forms of enforcement against a debtor. For further details and to discuss your requirements then please speak to the Rogers and Norton Debt Recovery team who will be happy to provide further assistance and advice.