18. Enforcement of Money Judgments

Question 1

What is the annual interest rate of High Court judgments, from when does interest begin to accrue, and what is this interest in addition to?

Answer 1

8%, from the date of judgment, in addition to the any punitive interest the court may award on the value of the claim

Question 2

What is the monetary threshold in County Court, under which interest will not be payable, and what is the exception to this?

Answer 2

£5,000, except for when the dispute is based in contract, and the contract provides for interest.

• except in B2B contracts for sale of goods and service (Late Payment of Commercial Debts (Interest) Act 1998) where this is an implied term.

Question 3

What is the interest rate on County Court judgments above the £5,000 threshold?

Answer 3

8%, the same as the High Court

Question 4

What is the lower limit for a County Court judgment to be enforceable in the High Court?

Answer 4

£600

Question 5

Within what period must a judgment creditor (successful party) serve a court order on a judgment debtor (losing party), for a hearing to examine the debtors means and assets?

Answer 5

14 days

Question 6

What must the judgment creditor also file 2 days before the hearing?

Answer 6

Affidavit providing details of service and how much remains unpaid

Question 7

What is the lower limit for a High Court enforcement officer to enforce a High Court judgment?

Answer 7

£600 or more
- otherwise less than that is in the county court

Question 8

Who enforces County Court claims that remain in County Court?

Answer 8

County Court enforcement officers

Question 9

What is a writ of control?

Answer 9

A document issued by the High Court where a judgment creditor has requested to execute a judgment, which is forwarded to the High Court enforcement officer

Question 10

What is a warrant of control?

Answer 10

Basically the same as a writ of control, but in the County Court

Question 11

If the creditor wishes to take control of debtor’s goods, how much notice must they give?

Answer 11

Seven days

Question 12

If the creditor wishes to take control of debtor’s goods, within what period of serving must they do so?

Answer 12

12 months

Question 13

Where only can the creditor’s agent enter, and what must they do regarding goods seized?

Answer 13

Can only enter the address stated, and must provide an inventory of the goods.

Then must sell them within 7 days and use the proceeds to discharge the debt and enforcement costs.

Question 14

What two categories of items can the creditor not seize?

Answer 14

1. Equipment for use in the debtor’s trade
2. Household items necessary for basic domestic needs

Question 15

What is a controlled goods agreement?

Answer 15

An agreement whereby the debtor retains custody of the goods on the understanding that the enforcement officer is taking control, but the debtor agrees not to dispose of them before the debt is paid.
* agree to a repayment plan.

Question 16

What is a charging order on land?

Answer 16

Where the debtor has an interest in land (even if this is a joint interest), a creditor may obtain a charge on the property which will rank as an equitable mortgage and gives the creditor the right to apply for an order for sale

Question 17

What is an attachment of earnings order?

Answer 17

Where the debtor is in regular employment, the order compels an employer to make regular deductions from the earnings and pay them into court.

• debt owed = more than £50

Question 18

In what court only and against what type of party only is an attachment of earnings order available?

Answer 18

County Court. Individuals.

Question 19

Whilst there is generally nothing preventing a party from utilising multiple enforcement methods, what is required to enforce a judgment by taking control of goods when an attachment of earnings order is already in place?

Answer 19

Court permission

Question 20

What is the minimum amount that must be owed for a judgement to be enforced by means of a writ of control?

Answer 20

£5,000 - enforced in High Court

Question 21

Where a defendant wishes to appeal a decision made by a lower court regarding the payment of debt, how long do they have to appeal?

Answer 21

21 days from judgement, but money order can be enforced even if they are considering an appeal.

Question 22

Would applying for a third-party debt order over an overdrawn bank account be an effective enforcement method?

Answer 22

yes if circumstances require it.
- effective only where judgement creditor will be able to secure future funds that are eventually paid into the account.

Question 23

What are the correct steps when enforcing an interim third party debt order?

Answer 23

Interim third party debt order - served first within 21 days from date of final hearing.

Judgment debtor - within 7 days from date third-party was notified, and no less than 7 days before the final hearing date.

Question 24

What are the five methods to enforce money judgements?

Answer 24

1) Taking control of goods
2) Third-party debt order
3) Charging order
4) Attachment to earning order
5) Insolvency proceedings