Enforcement Of Money Judgments: How To Ensure You Receive What Is Owed
If you ever find yourself or your company in the unfortunate position of having to issue Court proceedings in respect of a sum of money that is due and owing to you (for example, an unpaid invoice), are ultimately successful at Trial and obtain a Judgment in your favour, you may think – job done!
However, unfortunately, this is not always the case.
Whilst securing a Judgment in your favour is a positive step towards recovering monies owed to you or your company, this is often not the final hurdle.
A money Judgment is often only as good as the paper it is written on if payment is not received!
Steps to Consider Before Issuing Court Proceedings
Before issuing Court proceedings, it is worthwhile considering whether your opponent has the means, or the assets, to be able to satisfy the amount of the judgment you are hoping to obtain. Do your homework!
Pre-Court proceedings investigations might include instructing a Tracing Agent company to conduct a “Pre-Sue Report” to obtain information on your opponent’s current financial position. It is also worth searching Land Registry to ascertain ownership of any properties you believe may be in your opponent’s name.
Post-Money Judgment
After being awarded a Judgment in your favour, your opponent will have a period to make the required payment to you. However, if payment has not been received by the specified deadline, you can take enforcement action against the Judgment debtor.
There are several different enforcement methods. The procedure will depend upon many factors, including the value of judgment, whether the Judgment debtor is an individual or company and what assets the Judgment debtor owns. Choosing the correct method of enforcement for each individual matter can make a difference with recovering monies owed to you!
It is best to act as swiftly as possible when considering enforcing a Judgment debt. Whilst a money Judgment can be enforced up to six years after the date it was made, the longer you leave it to enforce the judgment, the likelihood of full recovery decreases. People move home, their financial situations may change, or a company may become insolvent. All of these circumstances may affect whether enforcement of the Judgment debt is even possible.
County Court Bailiffs -V- High Court Enforcement Officers
Two of the main enforcement methods used to enforce a money Judgment are: instructing County Court Bailiffs or High Court Enforcement Officers (often referred to as HCEOs).
Whether the judgment is referred to the County Court Bailiffs or HCEOs for enforcement is dependent upon the value of the judgment. In some circumstances, you can choose whether to instruct a County Court Bailiff or HCEO. The general rule for the correct enforcement method is as follows:-
– If your Judgment debt is below £600, then you are only able to apply to instruct County Court Bailiffs to attempt to enforce the judgment;
– If the Judgment debt is between £600 to £5,000, then you may instruct either the County Court Bailiffs or HCEOs;
– If the Judgment debt is more than £5,000, then you can only apply to instruct HCEOs to attempt to enforce the judgment.
Once the County Court Bailiffs or HCEOs have been instructed, they will typically contact the Judgment debtor to encourage payment of the Judgment debt without needing to attend at their property. The County Court Bailiffs and HCEOs add their own fees to the debt, which will also be payable by the Judgment debtor. Therefore, it is within the Judgment debtor’s best interest to pay as soon as possible or reach an agreement with the County Court Bailiffs or HCEOs for a payment plan.
Instructing the County Court Bailiffs or HCEOs can often be a very effective method of enforcing a Judgment and recovering money that is owed to you or your company. This is because having Bailiffs turn up at your property is not a pleasant experience and can cause professional embarrassment, especially if other customers of a company become aware.
How We Can Help Enforce Money Jundements
The solicitors in our Dispute Resolution Team can assist you from the pre-action stage, issuing court proceedings and enforcing the judgment once obtained.
If you require any assistance or would like any further information, please contact our Dispute Resolution Team today.