What are the Different Methods of Judgment Enforcement
- 1. 1 What are the Different Methods of Judgment Enforcement? www.judgmentcollection.or g
- 2. 2 Judgment enforcement is an important legal action when the debtor is unwilling to pay the money they owe. After all, securing a judgment is only the first phase, and the creditor still needs to collect the owed money. If debtors refuse to pay even if the creditor wins the judgment, enforcement becomes necessary. However, there is not only a single approach to enforcement. Judgment enforcement can vary depending on factors such as the debtor’s financial situation, available assets, and the legal tools offered by the jurisdiction. In this blog, we will discuss the different types of judgment enforcement to help you understand which approach would be most appropriate in your situation.
- 3. 3 Methods of Judgment Enforcement This is the most common method of judgment enforcement, where enforcement officers take control of the debtor’s property and goods and sell them to recover the judgment debt. For this, a writ of control or warrant of control must be issued. These documents allow enforcement officers to seize and sell the debtor’s assets to satisfy the judgment. This method does not require a court decision and can be taken along with other enforcement methods. Taking Control of Goods
- 4. 4 A third-party debt order is a crucial method of judgment enforcement. This method involves seizing the funds available in third-party accounts such as banks. However, this method is a little tricky as the evidence to support an application can be hard to locate, and the success rate is relatively low. Moreover, knowing the debtor has a bank account or salary can increase the likelihood of successful collection. Third-Party Debt Order
- 5. 5 This method of civil judgment enforcement imposes a charge over a judgment debtor’s beneficial interests in land, securities, or other assets. This means debtors cannot sell and transfer their land before paying the debt beforehand. The court decides whether a charging order is appropriate based on the specific situation. However, charging order can be slow since it is considered a serious action. Also, the court is unlikely to grant charging orders for small debts. Charge Order
- 6. 6 In this approach of judgment enforcement, a fraction of debtor earnings are deducted by the employer and given to the creditor to settle the judgment. The employer continues deducting the amount until the entire debt is paid. The deducted amount is based on the set rate applied to the judgment debtor’s assets and income. However, this method is only applicable to individual cases. Also, it is a cost-effective and popular method of enforcement. However, relying solely on this method is not a good option as debtors can become unemployed, which delays the payment process. Also, it may be ineffective and time- consuming for larger debt. Attachment of Earnings
- 7. Appointment of a Receiver by Way of Equitable Execution 7 This is not a very common method of civil judgment enforcement, primarily applicable in cases where the debtor is a company. This involves appointing a receiver to present or gather property. The receiver is appointed by a company that holds a floating charge over the company assets. The receiver’s duties are to creditors who appoint them. They may have the authority to receive rent, profits and money related to the debtor’s property. In some cases, the receiver may take control of the debtor company and sell its assets to satisfy the debts.
- 8. 8 Factors of Judgment Enforcement Judgment enforcement also involves fees. If a creditor takes legal support, county court officers and high court enforcement officers charge for their services. Costs can vary depending on the method of enforcement and the debtor’s ability to pay the judgment. Potential Costs
- 9. 9 If creditors have been successful in judgment enforcement, they can also recover additional costs alongside the judgment debt. These recoverable costs can be fees for court proceedings, enforcement officers’ fees and other related expenses. However, the recovery amount depends on the type of enforcement and case. Recovering Costs
- 10. 10 It’s important to remember not all judgment enforcement methods are equally successful. If a debtor has a low capacity to pay or lacks a steady source of income, seizing property and goods may be ineffective. In such cases, creditors can explore other methods of enforcement to recover their money. Effectiveness of Enforcement
- 11. 11 Legal involvement can significantly impact the success of your judgment enforcement. For example, a legal professional can help you determine the most effective and cost-friendly method that depends on your case. Legal Advice
- 12. 12 Some enforcement methods require court intervention, such as appointing a receiver or applying for a charging order. If the court process takes time, judgment can be delayed. This could be a critical factor to understand when enforcing a judgment. Court Approval
- 13. 13 Judgment enforcement is a significant measure in recovering unpaid debt if the debtor is unwilling to pay. Whether you seize the property or use the attachment of earnings, each method has its speciality and importance. The success of judgment enforcement largely depends on persistence, understanding the legal options and negotiation. A creditor should always go with the approach that best fits their situation. By employing the right strategies, creditors can increase their chances of successful judgment recovery. If you are struggling with an unpaid debt and need assistance with judgment enforcement, you can contact our judgment collection agency. Our expertise will help you enforce your judgment effectively and recover your unpaid debt. Conclusion