How a creditor can enforce a judgment

A money judgment is a court order for a defendant to pay money to the claimant. The court can give the defendant time to pay, or order that the money is paid straight away (forthwith).

If the court grants a money judgment, the claimant becomes a judgment creditor, and the person against whom the order is made is the judgment debtor.

An unpaid money judgment can be enforced by the creditor applying to court for a:

• warrant of control in the County Court

• writ of control in the High Court[1]

• attachment of earnings order

• third party debt order

• charging order

An unpaid money judgment can be used as the basis for a creditor bankruptcy petition if the amount of the judgment exceeds £5000.[2] Before presenting a bankruptcy petition the creditor must have either:[3]

• attempted to enforce the debt by a warrant or writ of control

• issued a statutory demand

Debtors facing creditor bankruptcy proceedings should seek specialist debt advice and might need advice from a solicitor. Contested bankruptcy proceedings are in scope for legal aid if the debtor's home would be at risk of possession and sale.

Writs and warrants of control allow a judgment creditor to instruct enforcement agents (bailiffs) to visit the debtor's property and seize their belongings to pay for the judgment debt.

Warrants of control are issued by the County Court and are carried out by County Court enforcement officers. Writs of control are issued by the High Court. They are carried out by High Court enforcement officers.

A creditor must follow the taking control of goods procedure to take control of a debtor's goods.[4] This requires the enforcement agent to give the debtor no less than 7 clear days’ notice of the initial visit.[5]

The Taking Control of Goods: National Standards set out the rules of conduct for enforcement agents.

Regulations specify the fees that can be charged to the debtor by the enforcement agent for taking control of goods.[6]

The court that issued the writ or warrant has a general power to stay or suspend enforcement.[7] The debtor can ask the court to suspend enforcement if regular payments are maintained. If the creditor rejects the proposed payment amount the court will set instalments. The court could refuse to suspend enforcement if the proposed payments are too low. The application can be made at any time before goods are removed from the premises.

There are separate processes for suspending warrants and writs of control. There is a court fee for making the application to court.[8]

Suspending a warrant of control

A warrant of control can be suspended by completing form N244 and filing it at the County Court with a financial statement and a witness statement. If the payment proposal is not accepted by the creditor, the County Court will apply the determination of means guidelines to arrive at an instalment amount. If the application is approved, other methods of enforcement of the money judgment are also suspended.

A money judgment made in possession proceedings is not a default judgment, so form N245 should not be used to make the application.

Suspending a writ of control

A writ of control can be suspended by completing form N244 and filing it at the High Court with a financial statement and a witness statement. Unlike applications to suspend a warrant of control, if the application is approved, other methods of enforcement of the money judgment are not suspended.

To suspend other methods of enforcement the debtor must apply separately for an instalment order in the County Court by proposing payments on a financial statement accompanying form N244. The debtor can use form N245 to vary a default judgment to an instalment order. The N245 can be a simpler form to complete as it contains a financial statement.

Read more about the defendant's application to vary a money judgment on Shelter Legal.

Entry to premises

Enforcement agents can only enter premises by the usual route, normally the door.[9] They must not climb through open windows.

The enforcement agent must not force entry to residential premises to enforce a writ or a warrant of control for a judgment debt unless:

• the debtor has breached a valid controlled goods agreement,[10] or

• a warrant authorising reasonable force has been issued by the court[11]

A judgment creditor can apply to the County Court for an attachment of the debtor’s earnings if the debtor is employed. This means the employer deducts the amount specified in the court order and pays it to the creditor. The process is contained in Part 89 Civil Procedure Rules.

An application for an attachment of earnings is made to the Civil National Business Centre. The court serves a copy of the application and the reply form N56 on the debtor. The debtor must reply within 8 days of the date of service of the application.

The court can issue committal proceedings if the reply form is not completed and sent to the court.[12]

A court officer can make the attachment of earnings order if the court receives a reply with sufficient information about the debtor’s income and expenses. The debtor or the creditor can request a review of the court officer’s decision in writing within 14 days of service of the order. The review application is transferred to the debtor’s local court for a hearing.

If the court officer does not have sufficient information about the debtor’s income and expenses the matter will be referred to a district judge to make the order or give directions to the parties.

Responsibilities of the employer

The employer can be required by the court to provide details of earnings and anticipated earnings by a date specified by the court before a decision is made. The employer may be liable if deductions are not made in accordance with the order.[13]

A third party debt order instructs a third party such as a bank or building society to pay money belonging to the debtor to the judgment creditor. Upon receiving the application the court can issue an interim third party debt order without a hearing.[14] The interim order may require the third party to provide evidence of the debtor’s accounts to the court, and to freeze payments or transfers of money.[15]

If the debtor is in hardship they can make an application to the court to release funds to meet the needs of the household.[16] The application is made without notice on form N244.

The final decision about the third party debt order is made by a judge at a hearing. If the debtor objects to the third party debt order they must file their objections in writing along with evidence at least 3 days before the hearing.[17] There is no specific form for making written objections.

The debtor could object in writing to the third party debt order because:

• the money in the account does not belong to them

• there is a dispute about how much is owed

• the money is required for essential household expenditure

• they have made an application to set aside the underlying judgment

A creditor can make repeat applications for a third party debt order.

A judgment creditor can apply to court for an order to obtain information about the debtor’s means, for example, money in their bank account.[18] The debtor must attend a hearing and could be instructed to produce documentation to evidence their current financial circumstances.[19]

Failure to attend a hearing for an order to obtain information can result in the debtor being held in contempt of court. This means the court may issue a fine or a warrant of arrest.[20]

An order to attend court must be served on the debtor no less than 14 days before the hearing.[21] The debtor can ask for their travel costs to be paid by the judgment creditor.[22]

Certain judgment debts attract statutory interest at a rate of 8 per cent.[23] Statutory interest is simple interest.

Statutory interest runs from the date the judgment becomes payable unless a rule of court or a practice direction say otherwise. The claimant does not have to specify a claim for statutory interest on the claim form.[24] Statutory interest can only be added to debts over £5000[25] but must not be charged where the:[26]

• judgment debt is payable by instalments set by the court, and

• instalments are up to date

If the money judgment has been suspended on payment terms, statutory interest cannot be charged unless the order is breached and the money judgment becomes enforceable.[27]