In most cases where a party obtains a money judgment against an opponent, the opponent usually pays the amount the Court orders without the need for further action. However, sometimes an opponent will not pay the amount the Court orders them to pay and the winning party will have to take steps to enforce the judgment debt because it will not be automatically enforced by the Court.
One of the key considerations at the outset of a case is whether it is worth suing a potential opponent i.e. whether they have the means to pay a judgment debt. It is obviously not worth obtaining a judgment against somebody who does not have the money to pay the judgment or assets to enforce against.
It is often the case that enquiries must be made of the judgment debtor’s means because the method of enforcement will depend upon what assets they actually have. This information can be obtained by instructing an enquiry agent to investigate the assets of the judgment debtor or an application can be made to Court requiring the judgment debtor to attend court and be examined on oath as to his means.
Methods of Enforcement (four most common)
Execution – This method enables a High Court Enforcement Officer or County Court Bailiff to seize and sell the debtor’s personal goods to pay the judgment debt, solicitor’s costs and the costs incurred in enforcing the judgment. Some good are exempt for seizure such as jointly owned goods or those necessary for satisfying the basic domestic needs of the debtor and their family.
Charging Order – This typically takes the form of a charge against the judgment debtor’s home or other property they may own and is particularly useful to secure larger sums of money. The disadvantage of this method of enforcement is that the money is not obtained immediately and a further order for sale must be sought to make the judgment debtor sell the property and release the equity to pay the judgment debt. Another consideration under this method of enforcement is whether there are any other charges on the property such as a mortgage. If there is a charge from a mortgage company and a relatively recent one, it is worth investigating the extent of their charge and whether or not there will be enough money after the mortgage company has redeemed their charge to pay the judgment debt.
Third-party Debt Order – This requires a third party who owes the judgment debtor money to pay that money directly to the judgment creditor (the person who wishes to enforce the judgment debt). These types of orders will typically be made against the judgment debtor’s bank account and makes them pay a sum of money to the judgment creditor in satisfaction of the debt.
Attachment of Earnings – This method of enforcement requires a judgment debtor’s employer to pay a certain amount each month to the judgment creditor until the judgment debt has been paid. It is important to note this method means the money is not received immediately or in a lump sum. This method is not available where the judgment debtor is unemployed or self-employed.
It is always preferable that a judgment debtor pays the debt without the need for enforcement proceedings to be commenced, not only for the judgment creditor but also for the debtor because interest continues to accrue on the debt, typically at 8% per annum! Where the debt is not paid it is comforting for a judgment creditor to know there are various ways of making sure they get what they are owed.
Here at Laker Legal Solicitors we specialise in Civil Litigation, if you need a money judgment enforcing then contact us and see how we can help.
