Letters Before Action
This is a formal letter which sets
out to the debtor the amount outstanding and complies with the relevant
rules and regulations. A time limit of 14 days, is given to the debtor
to either respond or to pay the debt in full.
It is possible for the debtor to file a defence to any court proceedings issued against them. A defence needs to be filed within 14 days of service of the claim form from the court, unless an acknowledgement of service has been filed, which allows the debtor a further 14 days (to a maximum of 28 days) to file a defence. If a defence is filed and that defence has some merit of possible success, then the matter becomes a defended matter and will proceed through the court system.
Judgment in Default
Judgment in default is where the debtor neither files a defence or an acknowledgement of service followed by a defence. Therefore, if a judgment in default is requested from the court, the court will then grant a judgment against the debtor, without the need for any of the parties to attend the court.
This is a process whereby the debtor becomes legally bound to pay the sum ordered by the judgment. To the majority of people a judgment is what is commonly known as a County Court Judgment. This allows enforcement to be commenced, such as instructing bailiffs and attachment of earning etc.
is the procedure once judgment has been obtained, in which a charge is
placed upon the debtor’s property, in a similar way to which a mortgage
works. Further details are available here.
Attachment of Earnings Order
the judgment has been obtained, if the judgment debtor is paid via the
PAYE system, it is open to the creditor to make an application to the
court so that a proportion of the debtor’s wages are paid direct from
the employer to the court, which in turn is paid to the creditor. Further details are available here.
Third Party Debt Order
is the process whereby if it is known that the debtor themselves are
owed money, it is possible to make an application to the court to freeze
that money, so that the payment of that money is made direct to the
creditor, therefore circumnavigating the debtor. Further details are available here.
For further information on debt recovery or to make an appointment for an informal first discussion call Sarah Moore on 01228 552222 or email email@example.com .