Methods of Enforcement Flashcards
(12 cards)
Which method allows goods to be seized and sold to satisfy a debt?
A. Charging order
B. Taking control of goods
C. Third party debt order
D. Attachment of earnings order
B. Taking control of goods
Explanation: Taking control of goods (TCG) lets enforcement officers seize and sell a debtor’s possessions to satisfy the judgment debt.
What court must enforce a money judgment over £5,000?
A. Either High Court or County Court
B. Only County Court
C. High Court
D. Magistrates’ Court
C. High Court
Explanation: For debts over £5,000, enforcement by taking control of goods must be done in the High Court.
What does a charging order secure?
A. Future wages
B. Third-party debts
C. Movable goods
D. Real property or securities
D. Real property or securities
Explanation: A charging order secures a judgment debt against land or investments, giving the creditor a form of security.
What is the first step before any enforcement action?
A. Investigate the debtor’s means and assets
B. Apply for a charging order
C. Transfer to the High Court
D. Issue a statutory demand
A. Investigate the debtor’s means and assets
Explanation: Before enforcing, you must understand the debtor’s ability to pay and what assets can be pursued.
A debtor has £8,000 in a personal UK bank account. Which method is best?
A. Attachment of earnings
B. Charging order
C. Third party debt order
D. Taking control of goods
C. Third party debt order
Explanation: A third party debt order redirects funds (like bank balances) from a third party (the bank) directly to the creditor.
A judgment creditor knows the debtor owns property with no mortgage. Which method should they use?
A. Attachment of earnings
B. Charging order
C. Third party debt order
D. Insolvency proceedings
B. Charging order
Explanation: A charging order is used to secure debt against land and may lead to eventual payment when the property is sold.
A creditor wants to prompt fast payment from a company debtor. What action is most strategic?
A. Statutory demand leading to winding-up
B. Attachment of earnings
C. Charging order
D. Third party debt order
A. Statutory demand leading to winding-up
Explanation: A statutory demand is a powerful precursor to insolvency, often prompting payment to avoid liquidation.
A debtor has no assets but earns a regular salary. What should the creditor do?
A. Writ of control
B. Charging order
C. Insolvency petition
D. Attachment of earnings order
D. Attachment of earnings order
Explanation: An attachment of earnings order deducts money directly from the debtor’s wages through their employer.
The debtor is a limited company with unpaid invoices owed by clients. What method may help?
A. Charging order
B. Attachment of earnings
C. TCG
D. Third party debt order on clients
D. Third party debt order on clients
Explanation: If clients owe the debtor money, a third party debt order can redirect those payments to the judgment creditor
A £15,000 County Court judgment is outstanding and the debtor’s assets are unclear. What should the solicitor do first?
A. Apply for TCG
B. Transfer to High Court
C. Apply for insolvency
D. Use an order to obtain information (CPR 71)
D. Use an order to obtain information (CPR 71)
Explanation: CPR 71 allows the court to order the debtor to disclose their assets in person—critical when asset details are unknown.
A debtor has a car used for work valued at £2,000. Can it be seized under TCG?
A. Yes, always
B. Only if it is jointly owned
C. Only up to £1,350 if used for work
D. Never
C. Only up to £1,350 if used for work
Explanation: Tools of the trade, including vehicles, are exempt from TCG up to £1,350 to protect livelihood.
A creditor holds a charging order but wants quicker payment. What must they do?
A. Send a statutory demand
B. Apply for third party debt order
C. Apply for an order for sale
D. Issue a new claim
C. Apply for an order for sale
Explanation: A charging order only secures the debt. To realise the money sooner, the creditor must apply for an order for sale.
