On conclusion of a claim that proceeds via a County Court, Judgement will be given in favour of the Claimant or the Defendant. Within the aforesaid Judgement, a date will be specified by which either the Claimant or the Defendant has to pay the level of damages and costs awarded. Should either party fail to pay the requisite sum by the date specified, the party to which the money is owing will be in a position to enforce the Judgement. There are many different ways in which a Judgement can be enforced. The most appropriate method of enforcement will depend on the circumstances of the claim.
Warrant of Control
If the Judgement awarded is under £600, a Warrant of Control from the Court. This is an Order that allows a Bailiff to attend the debtor's premises and seize goods of the same value as the amount owed.
Writ of Control
If the Judgement awarded is over £600, a Write of Control can be obtained from the High Court. The aforesaid is similar to a Warrant of Control in that it allows a Bailiff to attend the debtor's premises, take control of goods of the value of the debt owed and pay the outstanding debt.
A Charging Order is a specific Order that secures a charge over an asset of the debtor, usually a house or property. This can be useful if there is sufficient equity in the property.
Attachment of Earnings
An Attachment of Earnings Order is an Order that forces the debtor's employee to deduct payments from the debtor's wages to pay the Judgement.
Third Party Debt Order
If there is knowledge that a third party holds money on behalf of the debtor, an application can be made to the Court to have the assets frozen and released as a payment in order to satisfy the Judgement.
If an individual owes more than £5,000 a statutory demand can be served against them. This is a formal demand for payment within 21 days. If the debtor fails to make payment, then a petition can be issued for the debtor's bankruptcy.
If an individual fails to respond to a statutory demand, a bankruptcy petition can be issued against them.
If a bankruptcy order is made, a trustee in bankruptcy will be appointed to collect in the debtor's assets and make a payment to their creditors.
Winding Up Petition
If a company owes more than £750, a winding up petition can be issued, regardless of whether a statutory demand has been served or not.
Once an order is made, a liquidator is appointed to gather in the company's assets and attempt to satisfy the debtor's liabilities, including debt and costs.