In the UK, if you have obtained a County Court Judgment (CCJ)against a debtor and they fail to pay, you can take enforcement action. The main methods of enforcing a CCJ include:
1. Warrant of Control (Bailiffs)
– If the debt is under £5,000, you can apply for a Warrant of Control through the County Court.
– This allows County Court Bailiffs to visit the debtor’s property and seize goods to be sold to cover the debt.
– If the debt is over £600, you can transfer the case to the High Courtand instruct High Court Enforcement Officers (HCEOs), who have more powers.
2. Attachment of Earnings Order
– If the debtor is employed, you can ask the court to deduct money directly from their wages.
– Payments are made through the debtor’s employer until the debt is cleared.
– This is not effective if the debtor is self-employed or unemployed.
3. Charging Order
– You can secure the debt against the debtor’s property (house, land, or investments).
– If they sell the property, your debt is repaid from the proceeds.
– You can also apply for an Order for Sale to force the sale of the property in certain cases.
4. Third-Party Debt Order
– This allows you to recover money directly from the debtor’s bank account or a third party who owes them money.
– The court can freeze funds in the debtor’s account up to the amount owed.
5. Order to Obtain Information
– This is not an enforcement method but helps gather details about the debtor’s finances.
– The debtor must attend court and disclose income, assets, and expenses.
– This can help decide the best enforcement method.
6. Statutory Demand & Bankruptcy
– If the debt is £5,000 or more, you can issue a Statutory Demand giving the debtor 21 days to pay.
– If they fail to pay, you can petition for their bankruptcy, which may lead to assets being sold to repay debts.
Choosing the Right Enforcement Method is one of the most important things that TM Law can help you with as its all very well knowing the methods but what is the best and most likely way you will recover the money you are owed.
The best method depends on:
- Whether the debtor has assets or income
- The amount of debt
- Whether the debtor is cooperative.
If you would you like help deciding the best enforcement method for your situation, please speak to us at TM LAW
