Topic 13 - Enforcement

Question 1

What is the ultimate objective throughout litigation?

Answer 1

To succeed and obtain a judgment against the other party

Question 2

What is a judgment debtor?

Answer 2

The unsuccessful party who must fulfill the judgment requirements

Question 3

What are enforcement proceedings?

Answer 3

Steps taken post-judgment by the successful party to obtain payment

Question 4

What must be considered regarding the defendant’s ability to pay?

Answer 4

Whether the defendant is able to or will pay any judgment given

Question 5

What can a judgment creditor apply for under CPR 71?

Answer 5

An order to obtain information from the judgment debtor

Question 6

What is the procedure for questioning a judgment debtor?

Answer 6

An application can be made to require the debtor to attend court and provide information

Question 7

What happens if the judgment debtor fails to attend the hearing?

Answer 7

The matter may be referred to a judge for committal

Question 8

Name four main methods of enforcement of money judgments.

Answer 8

• Writs / warrants of control
• Third party debt orders
• Charging orders
• Attachment of earnings orders

Question 9

What is the requirement for enforcement of sums over £5,000?

Answer 9

Enforcement must be carried out in the High Court

Question 10

What is the role of the judgment creditor?

Answer 10

Wants to recover the money owed as per the judgment

Question 11

What must happen before enforcement proceedings can start?

Answer 11

The debt must be due and the time for payment must have elapsed

Question 12

What investigations should be done regarding the debtor’s means?

Answer 12

Investigate the debtor’s financial status and assets

Question 13

What is the purpose of conducting company searches?

Answer 13

To access information about a company’s solvency and assets

Question 14

What is recorded in the Land Charges Registry?

Answer 14

Restrictions or prohibitions on the use of a property and any charges against it

Question 15

What does the Individual Insolvency Register list?

Answer 15

People who have been made bankrupt or have Debt Relief Orders or IVAs

Question 16

What is the Register of Judgments, Orders and Fines?

Answer 16

A record of all County Court judgments since April 1990

Question 17

What is a freezing injunction?

Answer 17

A way to prevent an opponent from dissipating assets

Question 18

What is the significance of legal aid for the opponent?

Answer 18

Your client may not recover costs or damages if the opponent is legally aided

Question 19

How does the UK enforce judgments abroad?

Answer 19

Through reciprocal agreements and conventions

Question 20

What is the common law approach to enforcing judgments?

Answer 20

It is more difficult and requires following the local law of the relevant country

Question 21

What is the first step in enforcing a judgment in a foreign jurisdiction?

Answer 21

Identify which foreign jurisdiction is involved and which regime applies

Question 22

What is the procedure for enforcing a foreign judgment in England?

Answer 22

Obtain a judgment from an English court by treating the foreign judgment as a debt

Question 23

What is the first step in enforcing a judgment in a foreign court?

Answer 23

Identify which foreign jurisdiction you are dealing with and which, if any, regime applies.

Question 24

What are the three scenarios for enforcement mentioned?

Answer 24

• Enforce a judgment of the High Court or County Court in a foreign country
• Enforce a judgment of a foreign court in England and Wales
• Enforce a UK judgment in another part of the UK.

Question 25

What must a judgment creditor obtain for enforcement in foreign countries?

Answer 25

A certified copy of the judgment (CPR 74.12).

Question 26

What written evidence must support the application for a certified copy of the judgment?

Answer 26

* Identify the grounds on which the judgment was obtained * State whether the defendant objected to the jurisdiction * Show that the judgment has been served * State appeal details, e.g., the date on which the time for appealing expired * State whether interest is recoverable on the judgment.

Question 27

What is TCG in the context of enforcement methods?

Answer 27

Taking Control of Goods.

Question 28

What does the Taking Control of Goods procedure allow an enforcement officer to do?

Answer 28

Seize a judgment debtor’s goods and sell them to satisfy the judgment debt and expenses.

Question 29

What are the essential requirements for goods to be enforced against in TCG?

Answer 29

* Goods must be owned by the judgment debtor * No third party claims to the goods.

Question 30

What items are exempt from seizure under TCG?

Answer 30

* Tools of the judgment debtor’s trade (up to £1,350) * Basic domestic items (clothing, bedding, furniture, essential household items).

Question 31

In which court must a judgment creditor apply for TCG if the debt sum is up to £600?

Answer 31

County Court.

Question 32

What document is issued for TCG in the High Court?

Answer 32

Writ of control.

Question 33

What document is issued for TCG in the County Court?

Answer 33

Warrant of control.

Question 34

What are the three stages of the TCG process?

Answer 34

* Giving notice to the judgment debtor of enforcement * Entering premises and securing the goods * Sale of the goods.

Question 35

What notice must be given to the judgment debtor before taking control of goods?

Answer 35

Notice must be given at least 7 clear days before taking control.

Question 36

What can an enforcement officer do if necessary when entering premises?

Answer 36

Use reasonable force to enter premises.

Question 37

What is a controlled goods agreement?

Answer 37

An agreement allowing the judgment debtor to retain custody of goods despite the EO taking control, pending payment of the debt.

Question 38

What happens to the goods if the judgment debtor does not make payment?

Answer 38

The goods must be sold by the enforcement officer.

Question 39

What is the purpose of a Third Party Debt Order?

Answer 39

To require a third party to pay some or all of a debt owed to the judgment debtor directly to the judgment creditor.

Question 40

What must happen for a Third Party Debt Order to be made?

Answer 40

The third party must disclose information and objections must be filed if any.

Question 41

What is a charging order?

Answer 41

A form of charge taken over land or specified assets to secure a judgment debt.

Question 42

What are the two stages to obtain a charging order?

Answer 42

* Obtain an interim charging order * Obtain a final charging order.

Question 43

What is an attachment of earnings order?

Answer 43

An order that allows deductions to be made from a judgment debtor’s salary by their employer.

Question 44

What is the minimum judgment debt required for an attachment of earnings order?

Answer 44

£50.

Question 45

What can happen if the judgment debtor changes jobs during the attachment of earnings process?

Answer 45

The court may discharge the order if the employer does not have the debtor in their employment.

Question 46

What is a statutory demand?

Answer 46

A formal demand for payment served on the debtor prior to issuing a bankruptcy or winding-up petition.

Question 47

What happens if a debtor does not pay a statutory demand within 21 days?

Answer 47

The court may presume that the debtor is unable to pay its debts, making it easier to issue a bankruptcy or winding-up petition.

Question 48

What is the threshold for issuing a bankruptcy petition against an individual?

Answer 48

More than £5,000.

Question 49

What is the threshold for issuing a winding-up petition against a company?

Answer 49

More than £750.

Question 50

What is the outcome if a debtor does not attend the hearing for a bankruptcy or winding-up petition?

Answer 50

The bankruptcy or winding-up order will likely be made.

Question 51

What is the significance of insolvency proceedings in enforcement?

Answer 51

They provide a strong incentive for the judgment debtor to settle the judgment debt due to the significant consequences.