In the final part of our three-part series around the civil claim lifecycle, we’ve answered the most frequently asked questions around enforcement and broken it down into less technical language.
What is enforcement?
Enforcement is the legal process used to ensure that a debtor complies with a court order to pay a debt. If a debtor fails to satisfy a judgment, enforcement actions are taken to recover the money owed.
When does enforcement occur?
Enforcement happens when a court issues a County Court Judgment (CCJ) in favour of the creditor, and the debtor does not pay the debt within the specified time.
Why is enforcement necessary?
Enforcement is necessary to ensure that creditors can collect the money owed to them when debtors do not voluntarily comply with court judgments. It upholds the integrity of the legal system and ensures that debts are paid.
What is the enforcement process?
There are several processes related to enforcement. The processes are as follows:
Order to obtain information:
An order to obtain information is a court order that compels the debtor to attend a court hearing to provide detailed information about their financial circumstances. This includes details of their income, expenses, assets, and liabilities. The information obtained helps the creditor decide the most effective way to enforce the debt.
Attachment of earnings:
An attachment of earnings order is a court order sent to the debtor's employer which requires them to deduct a specified amount from the debtor's wages and pay it directly to the creditor. This deduction continues until the debt is repaid in full, ensuring regular payments are made towards the debt.
Third party debt order:
A third-party debt order freezes money held in the debtor’s bank or building society account, preventing them from accessing these funds. The court then decides if the frozen funds should be paid to the creditor to settle the debt. This order is particularly useful when the debtor has sufficient funds available in their account.
Writ of control:
A writ of control is a court order that authorises High Court Sheriffs or High Court Enforcement Officers (HCEOs), to take control of and sell the debtor's goods to recover the debt. The officers can visit the debtor’s property, seize valuable items, and auction them to satisfy the debt. This method is usually used for larger debts.
Final charging order:
A final charging order secures the debt against the debtor's property, such as a house or land. This means that when the property is sold, the debt is paid from the sale proceeds before the debtor receives any money. While this does not force an immediate sale, it provides security for the creditor.
Order for sale:
An order for sale allows the creditor to force the sale of the debtor's property to recover the debt. This order is used after obtaining a Final Charging Order. If the court approves, the property is sold, and the debt is paid from the proceeds. This is usually a last resort when other enforcement methods have failed.
Can negotiations take place during the enforcement process?
Yes, it is often possible for debtors to negotiate with the creditor during the enforcement process. The debtor may be able to agree on a payment plan or settle the debt for a reduced amount to avoid further enforcement actions.
Enforcement is a crucial step in the debt recovery process, ensuring that creditors can collect the money owed to them when debtors do not voluntarily comply with court judgments. The process involves legal actions that can significantly impact a debtor’s property and financial status, emphasising the importance of fulfilling financial obligations and the serious consequences of failing to do so.
To read the first and second parts of this three-part series, see the related articles below. (Understanding Pre-action & Understanding CCJs)
