Draft and serve Pre-Action Protocol Letter
Before taking Court action, a pre-action protocol letter is required to be served on the debtor to make attempts to settle the matter without Court action. A claim can be struck out in consequence of not complying with the Civil Procedure Rules and any other relevant Acts or regulations which require a Pre-Action Protocol letter to be served. In most cases, such a letter must provide no less than 14 days for the debtor to settle the debt in full or make any other arrangements you may propose or accept, such as instalments.
Credit Consumer Default Notice
Where a creditor grants an agreement under the Credit Consumer Act 1974, a default notice under part 6 of the Credit Consumer Act 1974 must be served providing the debtor with no less than 14 days to remedy the breach they have made if remedy is available, such as paying a debt. Following the 14 day notice lapsing, a money claim can be issued to seek a County Court Judgement against the debtor.
A statutory demand can be issued to debtor to ask for payment of a debt from an individual or company. When the debtor receives the statutory demand, they will have 21 days to either pay the debt or enter into an agreement with the credit to pay the debt.
If the debtor does not respond to the Statutory Demand, an application can be made to bankrupt the debtor. If the debtor is a company, an application to the Court can be made to put the company into compulsory liquidation (close the company) should they fail to respond to the Statutory Demand within 21 days.
Various Court Remedies:-
A Money Claim will be issued against the debtor to obtain a County Court Judgment (CCJ). When a Money Claim is issued, the debtor will have 14 days to pay the debt they will also be given other option such as admitting part of the debt or due or filing a defence for example.
Upon a CCJ being obtained, should the debtor continue to fail to pay, the judgment can be enforced, such as instructing bailiffs to recover the debt.
Third party debt order
A third party debt order can be sought to stop the defendant taking money out of their bank or building society account. The money you are owed is paid to you from their account. A third party debt order can also be sent to anyone who owes the defendant money, in which case they would be required to pay the creditor a sum directly and their debt with the defendant would no longer be due.
A bankruptcy petition is an application that can be made to the Court for someone’s assets to be taken and sold to pay their debts. The debt must be £5,000 or above to make this application, first however a statutory demand must be served upon the debtor.
Winding Up Order
Following the issuing of a Statutory Demand a winding up order can be sought, this is a Court order that forces an insolvent company into compulsory liquidation . The Court appoints an Official Receiver to liquidate all of the company’s assets in order to repay creditors. Once you’re application is successful:
- the company assets are sold
- the company collects money it’s owed
- funds are paid to you and any other creditors
Warrant of Control (County Court Enforcement)
A an application for Warrant of Control can be made to the County Court for an enforcement agent to try to get back any amount above £600 up to £5,000. (An agreement regulated under the Consumer Credit Act 1974 can only be enforced in the County Court and the £5,000 upper limit does not apply.) A judgement can be transferred to the High Court if the debt is above £5,000 and a Writ of Control can then be made to enforce the judgement.
Writ of control (High Court Enforcement)
A Writ of Control is the equivalent to a Warrant of Control but in the High Court. It Is important to take into account before proceeding with a Warrant or Writ of Control if the debtor has any money or assets. Warrants or Writs of Control usually fail if:
- the debtor is not at the address you gave; or
- the debtor’s goods are not worth enough to pay anything towards the amount you are owed and the cost of taking and selling them at auction.
Where a judgement is obtained against a debtor, further information may be required by the creditor to enforce the judgement to recover the debt. Where the debtor fails to provide the required information an application can be made requiring the debtor (if a company an officer of that company) to attend Court to provide information about the debtors means or on any other matter about which information is needed to enforce a judgement or order. Should the debtor fail to attend an information hearing they may be fined, imprisoned or their assets may be seized.
The application for a charging order always has two stages. These are an interim order and a final order. If the creditor applies for or is given a CCJ against you on or after the 1 October, they can apply for a charging order straight away. This applies even if you are up to date with payments under the CCJ. If your creditor gets a final charging order, this doesn’t mean you will have to sell your property. If your creditor wants to force you to sell your property, they will have to apply to the court for a further order called an order for sale.
Attachment of Earnings
You can apply for an attachment of earnings order unless the defendant is:
- unemployed or self-employed;
- a firm or a limited company;
- in the army, navy or air force; or
- a merchant seaman.
If you are not sure whether the defendant is employed, you can apply for an information hearing (mentioned above) to obtain this information.
A court officer will look at the information given on the defendant’s statement of means and decide how much the defendant can afford to pay. You do not have to accept the court officer’s decision. You can ask for a district judge to decide what would be a fair way for the defendant to pay the money.
After the order is made, Centralised Attachment of Earnings Payment System (CAPS) will send you any money they receive from the employer. They will send this money every week or month, depending on how the defendant is paid and when the employer takes the money from the defendant’s earnings. CAPS will make sure the employer makes payments. If CAPS do not receive payments, they will find out why from the employer.
The most common reasons for not receiving payments are:
- the defendant has left or changed jobs; or
- the defendant is not earning enough for the payments to be made.
Recover debt through the court
No matter what the size of the debt is, or what the debt is for, Landlord Advice UK can help you.
At Landlord Advice UK we act swiftly and efficiently on behalf of our clients struggling to recover the debt lawfully due to them. With our experienced debt recovery staff we can save our clients valuable time, money and stress.
Landlord Advice UK offer a fixed fee service so you can set your budget.
We offer the following services:-
- Demand for the debt to be paid and threat of court action. Includes letter followed by telephone calls £95 includes VAT.
- Court action, We will issue a claim in court debt of upto £9,000 our fee is £189 includes VAT + court fee. Debts over £9000 contact for quote.
- Attachment of Earnings £320
- Information Hearing £510
- High court enforcement eviction £995
- Third Party Debt Order £510
- Charging Order £950 per title
- Statutory Demand against individual £350
- Statutory Demand against company £350
- Bankruptcy Individual (Petition undefended) cost is based on case by case
- Company Winding Up (Petition undefended) cost is based on case by case