How to enforce a County Court Judgment

A County Court Judgment (CCJ) is a court order which requires an individual or a company to pay money to another. The monies will normally be payable within a short timeframe, but the court has discretion to give the paying party more time to pay the debt owed in the form of instalments. CCJ’s may be granted in relation to rental arrears or a contractual debt.

If the paying party fails to comply with the court’s order, the Civil Procedure Rules set out various ways in which the receiving party can try to recover the monies they are owed. It is possible to try and use a combination of the options below; the first step that a receiving party should consider is what the paying party’s financial position is and what information is known about their assets or their income.

Writ of Control

This requires court to issue a further order which commands an enforcement officer to take control of and sell of any assets belonging to the paying party to raise funds to pay towards the CCJ. This method is usually more cost-effective and can result in a quicker payment of the CCJ, but it all depends upon whether or not the paying party has any assets. 

Third Party Debt Order

This requires a further application to the court which seeks the freezing of any sums that are in the control of a third party (such as a bank). An initial order is generally made to freeze those sums, with a hearing then listed by the court to determine whether or not those frozen funds should be transferred by the third party to the receiving party. This method can also result in quicker payments of the CCJ but is entirely dependent upon what sums (if any) are held by the said third party. 

Attachment of Earnings

A further application is required to effect this; once an order is granted it will ensure that a proportion of the paying party’s salary is deducted by their employer and paid to the receiving party in instalments, until the CCJ is satisfied. The debt is automatically deducted from the paying party’s wages and no involvement or co-operation is required on the part of the paying party. Prospects of success are naturally dependent upon the paying party’s employment status and level of earnings. 

Charging Orders

A charging order is a way of securing a CCJ by imposing a charge over the paying party’s beneficial interest in land, securities or certain other assets. The charge, once granted and registered, prevents a paying party from disposing of their interest in the said land without settling the CCJ first, providing there is sufficient equity in the property. 

Charging Orders are effective when there is substantial equity in the property. The process can be quite slow; initially on the court’s side with the procedures to be followed but thereafter in actually realising payment; the charge itself merely protects the receiving party’s interest and they will need to apply separately for an ‘Order for Sale’ unless they want to wait for the paying party to sell the property.

Insolvency Proceedings

A receiving party who has not been paid could apply to make the paying party bankrupt if the sum owed exceeds £5,000. After a bankruptcy or winding up order is made, the paying party’s assets would be collected by a trustee in bankruptcy or a liquidator, and any remaining funds after paying of priority debts would be distributed among the paying party’s other creditors. This method can be expensive and may not result in payment of the CCJ.  

There is no guarantee that taking enforcement action will result in paying of a CCJ; all of the methods outlined above require further expenses to be incurred by a receiving party who is already out of pocket. 

If you are owed money by an individual or a company who has failed to pay, please contact Michaela Tutt on mct@deanwilson.co.uk or 01273 249250.