Enforcement of A Judgment can take a variety of different pathways depending upon the type of debtor you are dealing with and the value of the debt.
Methods of enforcement include
An Attachment of Earnings Application which is appropriately used where you have obtained a debtor’s employment details and believe the debtor to be in (preferably) full-time employment and earning a reasonable salary.
The High Court Enforcement Agents (HCEA) who are instructed to attend at a debtor/’s premises / home for the purposes of obtaining full payment, setting up a payment arrangement or seizing goods to the value of the debt where appropriate.
A Charging Order Application which is appropriately used where you have ascertained that the debtor is a homeowner and you wish to secure your Judgment debt against the property until such time as the property is sold or remortgaged. The property must be registered with the HM Land Registry. Where appropriate an Order for Sale can then be sought via the Courts.
Third Party Debt Order where you wish to seize money owed by a third party to the debtor direct rather than the monies going direct to the debtor.
Insolvency actions should be considered where you believe the debtor has sizeable assets and the debt value is sufficient to meet the monetary threshold for Statutory Demands, Bankruptcy Petitions and/or Winding Up Petitions.
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What happens when you (judgment creditor) obtain a judgment?
Once you obtain a judgment as the creditor, you may assume that the judgment debtor will be complying with the judgment, and paying you. Unfortunately, it isn’t as simple as that. The court does not automatically enforce a judgment or order when the debtor fails to make the payment. It is on you (judgment creditor) to apply to the court to enforce the judgment using one of the enforcement methods referred to above.
What to do beforehand
- Try to obtain as much information as possible regarding the judgment debtor and his/her assets. Evaluate the nature as well as the cost of his/her assets to determine if you can enforce a judgment against them. Does he/she own a business or have a stake in a business? Does he/she own any land or property? If so, where is it located and what is its value? Knowing all this and more about them and their assets would help you choose the right enforcement method.
Various methods for enforcing a judgment
When it comes to Enforcement of Judgment, there are many different methods available to judgment creditors, including –
- Writ of Control and Warrant of Execution (HCEA and Bailiff)
- Third-party Debt Order
- Charging Orders & Order for Sale
- Attachment of Earnings Application
- Insolvency proceedings: bankruptcy & company liquidation
No matter which method is best suited to your case, you will have to make an application to the court to begin the enforcement process. Remember that any delay could give the debtor a chance to dissipate his/her assets or move away.
Are you looking for more information? Get in touch with Legal Recoveries today.
