Chapter 18: Enforcement of money judgements

• Enforcement of money judgments

  Steps the successful party must take to get paid if the losing party does not pay
• Discovering assets of losing party


  Instruct an enquiry agent
• Interest on High Court judgments

  8% per annum, running from the date of the judgment, in addition to interest awarded on the value of the claim
• Interest on County Court judgments under £5,000


  Normally not payable, but if the judgment arises from a contractual obligation and the contract provides for interest, that interest will be payable
• Interest on County Court judgments £5,000 and over

  Carries interest at the same rate as a High Court judgment unless postponed
• Oral examination


  A judgment creditor may apply for an order requiring a judgment debtor to attend a court hearing to provide information about means and assets
• Oral examination procedure


  Judgment creditor must serve the court order personally on the judgment debtor no less than 14 days before the hearing, file an affidavit not less than two days before the hearing, and an officer of the court or the judgment creditor questions the judgment debtor on oath
• The judge may make a committal order if the judgment debtor fails to attend the oral examination
• Taking control of goods

  High Court Enforcement Officer will enforce a judgment registered in the High Court, County Court enforcement agents must enforce claims remaining in the County Court
• Writ of Control (High Court)


  Judgment creditor files a request to execute the judgment, attaching a copy of the judgment and any order granting permission, if required, and the court will issue a 'writ of control' which is forwarded to the High Court enforcement officer
• Warrant of Control (County Court)

  Judgment creditor must certify the amount remaining due and, once the court seals the order, it forwards it to a certificated enforcement agent
• Procedure for taking control of goods

  Creditor must give the debtor no less than seven days' notice, take control within 12 months, agent can enter only the stated address and provide an inventory, agent must then sell the goods within seven days with the proceeds used to discharge the debt plus enforcement costs
• The creditor's agent cannot seize equipment for use in the debtor's trade or household items necessary for basic domestic needs
• Controlled goods agreement


  An agreement that permits the debtor to retain custody of the goods on the understanding that the enforcement officer is taking control of them, and the debtor agrees not to dispose of them before the debt is paid
• Third-party debt order


  Applies when there is a judgment against a debtor who has money in the bank, the creditor obtains an order that the bank pays the money to them instead of to the debtor, or in commercial cases where the judgment debtor is owed money by a third party, who will then pay the debt directly to the judgment creditor
• Charging order on land


  If a judgment debtor has an interest in land, a creditor may obtain a charge on the property, which will rank as an equitable mortgage, giving the creditor the right to apply for an order for sale
• Attachment of earnings


  An order that compels an employer to make regular deductions from the debtor's earnings and then pay them into court, available only in the County Court and only against individuals
• Other less common methods of enforcement

  • Charging orders against stocks and shares
  • Equitable execution, e.g. a charge against a legacy in a will
  • Steps to file for bankruptcy against a debtor
  • Steps to wind up a company
• There is nothing to prevent a judgment creditor using the various methods of enforcement together, except that a party needs permission of the court to enforce a judgment by taking control of goods while an attachment of earnings order is in force
• If a creditor suspects that the debtor is about to dispose of their assets in order to avoid enforcement, it may be sensible to apply for a freezing order, to freeze the judgment debtor's assets
• Debt recovery is easier if the debtor is within a country which has a reciprocal agreement with England and Wales, or there is a term in the contract stating that any disputes will be dealt with by reference to the laws of the courts of England and Wales
• Enforcing a judgment against a debtor in an EU country


  If a contract stipulates that England and Wales courts have jurisdiction, the creditor can issue a claim in the UK
• Enforcing a judgment against a debtor outside the EU


  If the debtor is in a country that has a reciprocal agreement with the UK, a creditor is permitted to trace the debtor and enforce the claim in that country, with the court's permission, but it will be very difficult to enforce a judgment debt against a debtor located within a country that has no reciprocal agreement and is not a party to any applicable conventions