Enforcing a court judgment – what are the options if the debtor doesn't pay?

Prior to commencing litigation it is highly advisable to consider whether the defendant has the means to pay any judgment and/or whether they might simply ignore any CCJ debt. It is quite common for judgments not to be paid and you may need to take action to enforce.

As a general rule a defendant will usually have 14 days to pay the judgment amount, but this can differ at the Judge’s discretion. If the judgment sum has not been paid within the time frame you can then commence enforcement proceedings.

There are number of ways to enforce the judgment debt and not every method is suitable to every situation.

How to enforce a CCJ

Enforcement options should be carefully considered. Note that the Court will do nothing to enforce a judgment, it is up to the judgment creditor to decide how to enforce. Options include :-

• Apply to the court for the debtor to be required to disclose finances under oath - if the debtor does not comply they can be arrested. If you are concerned that a debtor may attempt to conceal their assets this would not necessarily be the best option as it would alert them to your intention to enforce.

• Charging order over property - if a debtor owns a property you could apply to the court for a charging order over the property and could, under certain circumstances, force a sale of the property.

• Attachment of earnings - another option is an attachment of earnings whereby you can apply to the court for an order to compel the debtor’s employer to deduct money directly from their earnings. It is unlikely that you would receive the full sum due in one payment but over the time the full amount could be repaid. This would only be suitable if the debtor has a reliable and steady income.

• A 3^rd party debt order - a method which could be suited to a debtor with a regular income. As with the attachment of earnings, if granted by the court, the order will allow for money to be taken directly from the debtor’s bank account or other 3^rd party.

• Bailiff - instruct the Court Bailiff or a High Court Enforcement Officer to seize goods from the debtor's property. This is risky and far more effective if the debtor is a business operating from commercial premises.

• Bankruptcy or winding up - the debt must be at least £750.00 and the fees payable to start insolvency proceedings are expensive. Other creditors will almost always come forward and secured creditors get paid first. This option should be very carefully thought through.

Not all options are suitable for every situation and there are thresholds of the value of the debt owed for certain enforcement proceedings.

There are court fees and potential legal costs but all of these are added to the debt so are recoverable in the long run. The fees and legal costs are minimal in comparison to the litigation costs.

It is always advisable to seek legal help to assist in helping you decide which is the right option for you and to help guide you through the process. Should you require any assistance in seeking to recover a debt owed to you or wish to discuss any of the issues raised, please do not hesitate to contact us.