In the current UK financial climate, it has become increasingly difficult to recover monies owed to you even after going the through the hoops of getting a judgement order in the first place. So, you now have a piece of paper that says someone owes you the money be it a business or individual, but how do you translate this paper to money in the account?
While there is no one answer it is important for creditors to understand the effective enforcement strategies available to them.
Enforcing a judgment involves compelling a debtor to pay the amount awarded by the court, and once the court issues a judgment in favour of the claimant the onus falls on the claimant to pursue enforcement using the most suitable means in the circumstances.
This article explores some of the ways to effectively enforce the judgment.
Methods of enforcement
Instructing Bailiffs
Instructing county court bailiffs for debts under £600 and Court Enforcement for debts over £600 can prompt debtors to pay or propose a payment plan to be strictly adhered to avoid further embarrassment or having their possessions seized. The downside of instructing bailiffs are that there may be limitation on recovery i.e. asset seized may not make up for the total sum owed.
Charging Orders
Claimants can secure their debt by registering their debt against the defendant’s property. Although this reduces risk of non-payment the disadvantage is that the debtor may have numerous charges on the property and/or may not have enough equity in the property to repay the debt. Another consideration is the length of time it could take to be repaid as the property would need to either be sold or refinanced and this is largely down to the debtor’s financial situation.
An Order to Obtain Information
This is where you could summon the debtor to court to answer questions in respect of their financial situation. This would provide the Claimant with information which could assist in deciding the most suitable enforcement action. However, court date schedules may not be ideal where the debtor has limited assets, and the information may not actually provide enough detail for further enforcement.
Attachment of Earnings
An application for an order to recover debts by deducting payments from the debtor’s wages or salary may be an option. Provided the debtor is in employment you would run a lower risk that the debtor will evade payments. However, you would need relevant information about their employment or instruct a tracing agent to try and ascertain information on the debtor, which would be an additional cost. There is a limit to what may be deducted, and the clearance of the debt will take time.
Ascertaining Information
Tracing Agents
Instructing tracing agents can be a good way to trace your debtor and gather information to assist you in choosing the most suitable option of enforcement, and most importantly consider whether enforcement of any method would be fruitful.
Enforcing a judgment can prove to be tricky even for those working in the field and we would always recommend getting advice before spending additional time and money, where the risks are often high.
For bespoke advice on debt recovery please call 01928 735333.