ENFORCEMENT
Relevant parties:
Who is the creditor (who wants the money)
Who is the debtor (who owes the money)
What items can enforcement action be taken – do one by one AND state the method of enforcement
– Then apply next item and state method of enforcement…
EXEMPT ITEMS ITEMS WHICH CREDITOR CAN OBTAIN
Goods on hire / rented / hire-purchase Money a third party owes to D
Tools, books, telephones, computer equipment, Factory D owns / office D owns
vehicles, other items debtor needs for their trade, Contents of the factory (will depend – if they are
job, profession, study or business – subject to a needed for D’s job/trade/business – they are
max aggregate value of £1,350 exempt – but a printer may be obtainable)
Clothing, bedding, furniture, household equipment Bank account – in credit
and provisions that are reasonably required for Company cars – owned by the company and driven
satisfying the basic domestic needs of the debtor by the directors
and their family Items which D owns with a third party (share of
Additionally: proceeds would go to third party)
Debtor’s directors personal car – this is a personal TV’s / stereos / DVD players
asset so cannot be taken Land – including land owned jointly with a third
Overdrawn bank account party – the charge is then on the debtors beneficial
Rental space / rental offices interest.
Stock/shares in a building society Shares, debentures, securities over bodies
Debtor’s earnings
Money/bank notes – eg found at offices
Do we need to investigate the debtors assets?
The method of enforcement chosen will depend upon what type of assets are available to pay the judgment debt.
There are two main ways to investigate the judgment debtor’s assets:
1. the winning party can either instruct an enquiry agent to make investigations; or
2. they can apply to the court for an order to obtain information from the judgment debtor.
Instructing an enquiry agent
The enquiry agent should be given as much information as possible to assist their enquiries, and a limit should be placed on
the amount of costs to be incurred.
This method of carrying out the investigations is likely to be more expensive than a judgment debtor.
However, the enquiry agent may be able to discover assets which are not disclosed at the hearing and may produce results
more quickly.
Obtaining information from judgment debtor (Part 71)
An order to obtain information from a judgment debtor (paying party) is a court order requiring the judgment debtor to attend
before an officer of the court to be examined on oath as to their means.
The judgment creditor (receiving party) obtains the order by making an application without notice.
PD 71 making the application
o The judgment creditor must complete and file an application notice in Form N316 if the debtor is an individual, and
N316A if an officer of a company or other corporation is to be questioned.
o The application notice must contain a statement of truth.
PD 71, para 1 sets out the matters to be contained in the application notice.
METHOD OF ENFORCEMENT:
For the item which can be enforced against, what is the best method to do this:
Relevant parties:
Who is the creditor (who wants the money)
Who is the debtor (who owes the money)
What items can enforcement action be taken – do one by one AND state the method of enforcement
– Then apply next item and state method of enforcement…
EXEMPT ITEMS ITEMS WHICH CREDITOR CAN OBTAIN
Goods on hire / rented / hire-purchase Money a third party owes to D
Tools, books, telephones, computer equipment, Factory D owns / office D owns
vehicles, other items debtor needs for their trade, Contents of the factory (will depend – if they are
job, profession, study or business – subject to a needed for D’s job/trade/business – they are
max aggregate value of £1,350 exempt – but a printer may be obtainable)
Clothing, bedding, furniture, household equipment Bank account – in credit
and provisions that are reasonably required for Company cars – owned by the company and driven
satisfying the basic domestic needs of the debtor by the directors
and their family Items which D owns with a third party (share of
Additionally: proceeds would go to third party)
Debtor’s directors personal car – this is a personal TV’s / stereos / DVD players
asset so cannot be taken Land – including land owned jointly with a third
Overdrawn bank account party – the charge is then on the debtors beneficial
Rental space / rental offices interest.
Stock/shares in a building society Shares, debentures, securities over bodies
Debtor’s earnings
Money/bank notes – eg found at offices
Do we need to investigate the debtors assets?
The method of enforcement chosen will depend upon what type of assets are available to pay the judgment debt.
There are two main ways to investigate the judgment debtor’s assets:
1. the winning party can either instruct an enquiry agent to make investigations; or
2. they can apply to the court for an order to obtain information from the judgment debtor.
Instructing an enquiry agent
The enquiry agent should be given as much information as possible to assist their enquiries, and a limit should be placed on
the amount of costs to be incurred.
This method of carrying out the investigations is likely to be more expensive than a judgment debtor.
However, the enquiry agent may be able to discover assets which are not disclosed at the hearing and may produce results
more quickly.
Obtaining information from judgment debtor (Part 71)
An order to obtain information from a judgment debtor (paying party) is a court order requiring the judgment debtor to attend
before an officer of the court to be examined on oath as to their means.
The judgment creditor (receiving party) obtains the order by making an application without notice.
PD 71 making the application
o The judgment creditor must complete and file an application notice in Form N316 if the debtor is an individual, and
N316A if an officer of a company or other corporation is to be questioned.
o The application notice must contain a statement of truth.
PD 71, para 1 sets out the matters to be contained in the application notice.
METHOD OF ENFORCEMENT:
For the item which can be enforced against, what is the best method to do this:
