Examination Timing: 00H00M39S
A limited company (‘the Claimant’) supplies bike stands at a cost of £15,000 including VAT to a sole trader (‘the Defendant’) who sells electric bikes. The Defendant is VAT registered. The Defendant 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. The Defendant does not pay the judgment debt within 14 days as ordered by the court. The Claimant accurately informs the solicitor that the Defendant 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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A third party debt order is the most effective method of enforcement in this scenario. This order allows the Claimant to recover the judgment debt directly from the bank account where the Defendant holds funds. Given that the Defendant has a joint bank account with a balance of £30,000, a third party debt order can be used to secure payment from these funds. Other options such as a warrant of control and a writ of control involve seizing the Defendant’s goods, which may not be as immediately effective considering the assets are not liquid. An attachment of earnings order would not be suitable as it applies to salary or wages, and the Defendant’s primary income is through her business activities. A charging order over the apartment is not applicable since the apartment is rented, not owned by the Defendant. Key Point: A third party debt order is a powerful tool for enforcing judgments when the debtor has sufficient funds in a bank account. It allows the creditor to access the debtor’s banked funds directly, ensuring prompt recovery of the debt.
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