Winning a debt claim does not always mean you get paid. You may have a court judgment confirming that someone owes you money, but the debtor may still fail to pay.
If this happens, you may need to take enforcement action. There are several ways to do this. The best option will depend on the debtor, their income, their assets and how much they owe.
At AFG Law, our Dispute Resolution team can help you understand your options and take steps to collect the money you are owed.
What is debt enforcement?
Debt enforcement is the process of taking further action when someone has been ordered to pay you but does not do so. In many cases, the debtor pays after receiving a County Court Judgment. If they do not, you can ask the court to help enforce it.
Before choosing an enforcement method, it is worth finding out as much as possible about the debtor’s finances. Do they own a house? Are they employed? Do they have money in a bank or building society account? Do they own valuable goods?
The answers can help you decide which method has the best chance of recovering your money.
Debt enforcement using a warrant of control
One option to enforce a debt is to apply for a warrant of control. This allows County Court enforcement agents to visit the debtor and ask for payment.
If the debt is not paid, enforcement agents may be able to take certain goods. These can then be sold to help pay the debt. There are rules about what can and cannot be taken. For example, goods that do not belong to the debtor cannot usually be taken. Items that are subject to hire purchase may also need to be treated differently.
In suitable cases, enforcement agents may take goods to sell at auction, with the proceeds being used towards the debt.
Can a County Court judgment be enforced through the High Court?
Some County Court judgments can be transferred to the High Court for enforcement. Where this is possible, High Court Enforcement Officers may be instructed to enforce the judgment.
There are rules about which debts can be transferred. Different rules can also apply to debts regulated by the Consumer Credit Act. A solicitor can advise whether High Court enforcement is available in your case and whether it is likely to be worthwhile.
Enforcement using an attachment of earnings order
If the debtor is employed, you may be able to apply for an attachment of earnings order. This requires the debtor’s employer to deduct money from their wages. The money is then paid towards the judgment debt.
The court will consider the debtor’s income and essential living costs when deciding how much should be deducted. An attachment of earnings order will not be suitable in every case. For example, it cannot be used in the same way against a limited company.
Securing the debt against a property
If the debtor owns a house or other property, you may be able to apply for an order known as a charging order. A charging order can secure the judgment debt against the debtor’s interest in the property.
This does not always mean you will receive payment straight away. However, the charge can provide security for the money owed.
In some cases, a creditor may later ask the court for an order for sale. This is a separate step and the court will consider the circumstances before deciding whether an order should be made.
Can money be taken from the debtor’s bank account?
Another option is a third party debt order. A third party debt order can be useful where a third party holds money belonging to the debtor. This will often be a bank or building society.
The process can freeze money held for the debtor. The court can then decide whether that money should be paid towards the judgment. Timing can be important. If there is little or no money in the account when the order takes effect, it may not recover the amount you are owed.
What if I don’t know what assets the debtor has?
You may have a judgment but know very little about the debtor’s finances. In this situation, you may be able to apply for an order to obtain information.
The debtor can be required to attend court and answer questions about their financial circumstances. They may also need to provide relevant documents. This could give you information about their employment, income, property, bank accounts and other assets.
You can then make a more informed decision about which enforcement method to use.
How quickly can I enforce a judgment?
The judgment will normally state when payment is due. In some cases, this may be immediately. In others, the court may allow payment by a particular date or by instalments.
Do not assume that you always have to wait 14 days before taking enforcement action. The correct timing depends on the judgment and the type of enforcement you want to use.
If the debtor has asked for time to pay or applied to vary the judgment, this can also affect what happens next.
What is Breathing Space?
You should also check whether the debtor has entered a formal Breathing Space under the Debt Respite Scheme. Breathing Space can give an eligible individual temporary protection from certain creditor action while they receive debt advice.
If a qualifying debt is included, enforcement action may have to stop during the moratorium.
The rules can be complex, so creditors should check their position before continuing enforcement against somebody who is in Breathing Space.
Which debt enforcement method is best?
There is no single answer to this question as it all depends on the debtor’s circumstances. A warrant of control may be useful where the debtor has goods that can be taken. An attachment of earnings order may be more suitable where an individual has a regular salary.
A charging order may be considered where the debtor owns property. A third party debt order could be useful if you know they have money held by a bank.
The important point is to think about the chance of actually recovering the debt before spending more money. A judgment against someone with no income or assets may be difficult to enforce, even if your legal case was strong.
How AFG Law can help
If you have obtained a court judgment but have still not been paid, AFG Law’s Dispute Resolution team can help. We can review the judgment, consider what is known about the debtor and explain the enforcement options available.
Where appropriate, we can help you apply for a warrant of control, charging order, attachment of earnings order, third party debt order or order to obtain information.
Our aim is to help you choose a practical route based on the amount owed and the debtor’s circumstances.
If someone owes you money and has failed to pay a court judgment, contact AFG Law to discuss the next steps for enforcing the debt.