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Review Your SQE 1 Practice Records

Examination Timing: 00H00M37S

GreenTech Ltd (‘the Claimant’) supplies bike stands at a cost of £15,000 including VAT to Jane, a sole trader (‘the Defendant’) who sells electric bikes. Jane is VAT registered. Jane fails to pay the amount due. The Claimant instructs a solicitor who obtains a money judgment in the County Court for the full sum plus interest. Jane does not pay the judgment debt within 14 days as ordered by the court. The Claimant accurately informs the solicitor that Jane rents a very expensive apartment, her business is doing well, and she also leases an industrial unit where she sells and stores all of her stock. She also pays money monthly into a bank account in the joint names of her and her spouse, which has a current balance of £30,000. 


What is the best method of enforcing the judgment to recover some or all of the judgment debt?

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The best method for enforcing the judgment in this case is a third party debt order (Option D). This order allows the Claimant to seize funds directly from Jane's bank account, which has a substantial balance of £30,000. Since Jane’s business is doing well and she makes regular deposits into this account, this method ensures that the Claimant can recover the judgment debt effectively. Other options, such as a warrant of control or a writ of control, involve seizing goods, which may be less efficient given the available funds in the bank account. An attachment of earnings order is not suitable here since it applies to individuals' salaries and Jane's rental payments and business income may not be consistent. A charging order over the rented apartment is not applicable as she does not own the property. 


Key Point: This question addresses the enforcement of judgment debts and the strategic selection of enforcement methods. Understanding the different types of enforcement orders and their applicability is crucial for effective debt recovery in civil litigation.

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