In this difficult economy, it is more important than ever to keep a firm grip on expenditure. Taking the decision to commence Court proceedings against a debtor is therefore for most businesses, not one which is taken lightly.
Sometimes however, this is an inevitable step, particularly where a debtor simply refuses to pay. Unfortunately and perhaps all too often, the debtor who is unscrupulous enough to ignore your invoices may also be the type that will ignore a judgment.
So what happens when a debtor fails to pay after you have obtained a judgment in your favour? A Solicitor in our Litigation team, Michelle Hayter, explains “It is a common misconception that nothing can be done if a debtor fails to comply with a judgment against them. There are in fact several options open to creditors in seeking to enforce a judgment, the key is finding the right one, taking into account all the circumstances and the type of debtor you are dealing with. Below is a very brief summary of the options available.”
- Attachment of Earnings Order – e.g. stopping money from an individual debtor’s wages.
- Third Party Debt Order – e.g. freezing a debtor’s money held in a bank account.
- Charging Order – e.g. placing a charge on property owned by the debtor.
- Warrant of Execution – e.g. sending a Court bailiff to collect the money due.
- Order for debtor to attend Court for questioning. – e.g questioning in Court as to the debtors means.
- Bankruptcy / Winding Up
Taking enforcement action does not have to be expensive and if the correct procedure is used, it can be very effective. For a free consultation as to your options contact Michelle on 01202 499255.