This article will cover different ways to enforce your Judgment and get your money back. However, this is not legal advice. We always recommend seeking professional legal advice, as it can provide you with the guidance and support you need in this complex legal process.
If successfully awarded a County Court Judgment (CCJ), the Court will order for the debt to be paid directly to you. The defendant is normally allowed up to 14 days (England and Wales) or 21 days (Scotland) from the date of Judgment to pay the debt before this is added to their credit file for 6 years (England and Wales) or 5 years (Scotland). Consider starting to look into different enforcement options if no payment is received.
What action to take
It is possible to ask the courts to question the debtor’s financial situation, which would be vital to ensure they can pay the money owed.
If you are independently filing for a judgment, you would need an N316 form for individuals or an N316a form for companies. If you are unsure of the defendants residence, or want to confirm the details you have are correct, you can use our Address Trace service.
Types of Enforcement
High Court Enforcement Officers
Also known as HCEO, this is the preferred method of enforcement for most CCJs. It is a private company licensed by the High Court to enforce debts with a value of over £600, unless the debt is regulated by the Consumer Credit Act and under £25,000. They will attend the address to gain payment from the debtor and seek to collect their costs from the debtor. They are paid on results, meaning they have an incentive to collect the debt.
County Court Bailiff County
Court Bailiffs can enforce debts under £600 or debts regulated by the Consumer Credit Act and under £25,000. Bailiffs are employed by the Court, meaning they don’t necessarily have an incentive to collect the debt. They will often only visit during office hours and make no out-of-hours visits.
Third-Party Debt Order
This method of enforcement is by obtaining payment from a third party that owes money to your debtor and is often used by creditors who know the debtor’s bank details or are aware of a large contract the debtor may have. The main benefit of this is that the debtor will not know when you’re making the application and will only be notified after you have served the third party with the Court Order. The debtors bank account or funds held by a third party will have been frozen in full or in part. The funds are frozen on the day of receipt of the Order by the Third Party; if no funds are available on that day, then the application will fail, so timing is everything.
Attachment of Earnings
This will only work if you know the debtor is employed and have the name and address of the employer. If you have these details, you can claim for an Attachment of Earnings, which is where funds are deducted by the employer each month/week until the Judgment is satisfied. The debtor cannot be self-employed.
Charging Order
This is when a Judgment Order is secured against a property owned by the debtor, can be sole or joint ownership, by way of a Charging Order which will be registered with the Land Registry. Payment is usually only received if the debtor re-mortgages or sells the property, it is not a swift or efficient way to get the debt paid.
Winding Up Proceedings
This can be issued against a company if the Judgment is for more than £750. The petition is served against the company once the Court has given a date for the hearing. The petition can be advertised in the London Gazette 7 days after service, which will freeze the bank account, giving an incentive to make payment as soon as possible. Other creditors may wish to support the petition.
Bankruptcy Proceedings
Judgments must be more than £5,000 in order to make the defendant insolvent. A Statutory Demand is issued, which gives the debtor 21 days to pay. This must be served personally with proof of service. If it is not paid within the 21 days, a Bankruptcy Petition will need to be issued to the Court. They will then provide a date for a hearing. The bankruptcy and petition should also be served personally, and proof of service must be provided to the Court.
