Enforcement of a Judgment by Third Party Debt Order
This is a very effective
method of recovering money due under a Judgment which not many
people are familiar with.
The application can be made
against any "third party" (i.e. bank, individual or business) as
long as they owe money to the debtor.
The application is most
commonly made against a bank and you only need to know the name of
the bank, although it does assist if you know the account
details. The bank has a duty to search their records for all
accounts held in the debtor's name (as named on the Judgment) so it
may be that the debtor will have more than one account that the
Order can be used against.
Upon receipt of the Order the
bank must freeze the debtor's bank account(s) to cover all monies
up to the value of the Judgment plus fixed legal costs of the
application. Due to the difficulties this causes, especially
to a business, this often results in immediate payment being made
by the debtor from other sources so the freezing Order can be
The application can also be
made against an individual or company who owe money to the debtor
and the Court would order that entity to withhold payment to the
debtor and pay the amount owed under the Judgment plus fixed costs
of the application to the applicant.
A crucial aspect to consider
when making this application is timing as the entity receiving the
Court Order can only freeze any money owed to the debtor on the day
it receives the Order, therefore if you know a particular date when
the debtor is likely to receive money (for example wages into their
bank account or payment from another source) it would be more
effective to submit the application in good time prior to that date
so it can be served on the bank on the day the money is due to go
into the debtor's account.
This method of enforcement is
used by us regularly with good results, however if the application
is not successful in capturing any or all of the money due by the
debtor a second application can be made or other methods of
enforcement can be taken.
Posted on: 20/05/2015
This article is for general guidance only. It provides useful information in a concise form. Action should not be taken without obtaining specific legal advice.
Back to News articles