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The four ways to enforce payment

10th April 2003, Page 27
10th April 2003
Page 27
Page 27, 10th April 2003 — The four ways to enforce payment
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Which of the following most accurately describes the problem?

nce judgment is entered, you are entitled to enforce this by using one of four enforcement options currently available through the courts.

Warrant against goods. A warrant of execution enables a bailiff or a sheriff to remove goods to the value of the judgment. County court bailiffs deal with debts from £1 to £50,000, and high court sheriffs deal with debts from £600 upwards. Where possible, the sheriffs should be used as they are considered more effective.

Once instructed, the bailiff/sheriff will attend the debtor's premises and advise the debtor that if payment is not made, goods will be removed and sold at auction. It is usually this threat that affects payment. As a general rule, the bailiff/sheriff cannot force entry to residential premises and has limited rights of entry to commercial premises.

• Third party debt order. If you have evidence that your debtor is owed money by a third party, an application can be made for an order that the third party pay you in place of your debtor to

discharge the judgment (or part of it). lithe money is genuinely owed and the third party fails to pay you, then you can enforce the judgment against the third party as if it were your judgment debtor. The money must be owed at the date of the court order and not in the future.

• Chargng order. You can apply to the court for a legal charge over land owned by your debtor. You must prove that your debtor is the registered proprietor of the land or has an equitable interest in it. If you satisfy the court of this, it will grant a charging order which is then registered at the land registry and would generally be discharged when the property is sold.

• Attachment of earnings. This is an enforcement method generally used in consumer debt. If your debtor has ceased trading and is now employed, you can apply to the court for an order that your debtor's employer deduct installments from the debtor's wages at source. The deduction level is set by the court, and is based °lithe debtor's earnings and outgoings.

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Organisations: County court