expertise: commercial disputes management
debt
recovery process
Stage 1: The Letter Before Action
Upon receipt of instructions we issue a letter before action to the debtor. This will
Essentially give the debtor seven days in which to pay the outstanding sum or
Contact us to arrange settlement of the balance. Stage 2: Issuing Court action
We prepare the Claim form based on the information you have supplied. This is
Then sent to Court where the claim is officially issued and sent to the defendant.
The defendant then has 14 days in which to respond by either admitting the full
Debt, part of the debt or disputing the claim and filing a defence. The defendant can
File an Acknowledgement of Service and will then be given a further 14 days to
Prepare and file their defence. Stage 3: Judgement and Enforcement
Judgment can be entered after expiration of the Claim form. If the defendant has
Made an offer to pay the debt over a period of time judgement can be entered to
Reflect a payment arrangement that has been reached, say £1000.00 per month.
If the defendant has not responded to the claim form Judgment can be entered
Forthwith, meaning the full amount is payable immediately. If judgment forthwith is
Entered enforcement proceedings can be instigated at the same time. There are various types of enforcement action that can be taken if a Judgement remains unpaid.
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High Court/ County Court Warrant
If the Judgement debt is below £600.00 then a County Court warrant must be issued. For debts
Above £600.00 a High Court Warrant may be applied for.
A County Court warrant authorises a County court bailiff to attend the defendant’s home and seize goods
To be sold at public auction. The proceeds from the sale is then used to pay the judgement debt.
A High Court Warrant authorises a High Court Enforcement Officer to attend the defendant’s address in the
Same way that a Bailiff would. The High Court Enforcement officer does generally have a greater success
At executing warrant’s and achieving settlement of the balance.
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Attachment of Earnings Order
If the defendant is working then the court can order the defendant’s employers to deduct money from their
Wages each month and pay the monies to the court. If the defendant is working this can be an effective
Method of recovery. On certain occasions the defendant will settle their debt on notification of the
Application because they do not want their employer to be made aware of their financial difficult;ties.
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Charging Order
The court can make an order to secure the defendant’s Judgement debt against their beneficial
Interest in a property. When the defendant either sells their property or re-mortgages they have to pay
The Judgement debt plus interest to the claimant. Again, even the threat of this action can make some
Defendant’s pay their debt in full.
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Third Party Debt Order
This enforcement method can be used where the claimant is aware that the defendant is owed money
By a third party. The court can order that instead of the monies being paid to the defendant they are used
To clear the outstanding judgment debt. If the claimant is aware of the defendant’s bank details the court
Can order that monies in the designated account are frozen and paid to the creditor.
We will always use our knowledge and experience to advise you on the best possible method to enforce
Your judgement, whilst keeping you informed at every stage of the process.
key expertise: Debbie
Beet
Senior Associate and Debt Recovery Manager
debbie.beet@martineau-uk.com Andrew
Adams
Partner
andrew.adams@martineau-uk.com Giles Parry
Debt Recovery Assistant
giles.parry@martineau-uk.com |
