Landlords – Have you been granted an Order for Possession (including judgment for money arrears) against your tenant – and are you unsure what to do next?
If you have been granted an
Order for Possession against your tenant you sometimes have a judgment included
for the money arrears. You are able to use this to take enforcement action
(detailed below) against the debtor to recover the judgment sum.
We have contacts with tracing
agents who can attempt to locate a new address for the debtor if you have no
forwarding address. They usually agree to carry out this search on a no trace
no fee basis so you will only pay their fee if the agent is successful. The fee
is usually around £50 to £80 plus VAT.
There is a variety of enforcement
options available, including:
of execution (County Court Bailiff) –
for debts below £5,000. The County Court sends Bailiffs to the debtor’s address
to try to obtain payment and/or remove goods that are of value that can be sold
at auction – the sale of these goods is then used to pay off the debt.
Court Enforcement Officers – Writ of Control–
the debt needs to be £600 or over. The Judgment obtained at the County Court is
then transferred to the High Court for a Writ of Control or Writ of Possession.
High Court Enforcement Officers attend the debtor’s address (similar to Warrant
of Earnings Order– this is an order obtained by
the court and served upon the debtor’s employer. An amount decided by the court
is then deducted from the debtor’s wages and paid directly to the Creditor/Claimant.
However, this is only applicable to debtors that are employed and not
self-employed or receiving benefits.
Order- this secures the debt owed to
you against the debtor’s property. If the property is then sold or re-mortgaged
the debt will be paid if there is sufficient equity in the property.
up Petition – this is considered to be an option
of last resort. The threat of such action can be very effective and will
definitely focus the debtor’s mind on paying what they owe. This can be only be
used on debts on or over £5,000 if the debtor is an individual or £750 if the
debtor is a company.
Party Debt Order- in this case, the court orders
that money owed by a third party to the debtor, is paid directly to the
creditor/claimant. This type of order can also be used against a bank account
in the debtor’s name; this sometimes leads, from a practical perspective, to
the bank account being frozen until the date of a hearing of the application.
Our specialist debt recovery
experts can advise you on the best route to maximise your recovery and guide
you through each step.
further information on possible enforcement proceedings or if you have any debt
related questions please contact
Debt Collection Centre recovers the debts that others can’t- powered by
Devonshires Solicitors. We act for a variety of businesses including
individuals, SMEs, sole traders, government agencies and companies.