How to collect an unpaid CCJ

Collecting an unpaid CCJ

While you may think that obtaining a County Court Judgment (CCJ) will result in a debtor immediately paying off the whole debt or an agreement of payment by instalments, this is not always the case and some debtors simply continue to ignore the claim leaving an unpaid CCJ.

If you are a creditor with a CCJ and a debtor is still prolonging payment, enforcement action then needs to be taken but there are a whole variety of options. Deciding which is the most appropriate can be difficult especially for a layman.

You may have already spent thousands and many hours on attaining a judgment but now what? when collecting an unpaid CCJ, Choosing the right option will no doubt be the difference between getting paid and getting nothing paid at all. CCJ Debt Collection plays a critical role in getting you paid.

We have hundreds of years of combined experience in dealing with enforcing the payment of County Court Judgments and will always advise of the most suitable solution dependant on the debtor’s circumstances. This ensures we maximise the potential of collecting your unpaid CCJ.

Essentially though, the main options available tend to be:

Charging Order

Under the CCJ, if the debtor owns property or is interested in buying a property, you can apply for the court to place a charge for the amount that you are due from the price of the property, plus court fees and basic costs.

With a Charging Order, the payment of the debt will not be immediate, but it will provide you with security for the debt which will be discharged when the property is sold, provided there is sufficient equity.

Order for Sale

Once they’ve got a charging order, some creditors will be prepared to wait for you to sell your home whenever you’re ready, at some point in the future. However, others will apply for an order for sale straight away. This could be the case even if you owe them a fairly small amount of money compared to the value of your home.

The Court will take into account the debtor’s circumstances, particularly if the charge is over a family home when it is unlikely to order that it be sold unless there is a substantial amount of equity available.

County Court Bailiff/High Court Enforcement Officer

This is when a county court bailiff or a High Court Enforcement Officer (HCEO) is granted permission to enter the debtor’s premises to seize assets to the value of the debt plus the costs of execution.

HCEO’s are known to have considerably higher collection rates than a County Court Bailiff as they have more authority to enforce than those of a County Court Bailiff. Their fees and costs are recoverable from the debtor therefore the HCEO have an incentive to recover the outstanding sums as otherwise they would not be paid.

When enforcing a money Judgment their first course of action is to take control of (seize) the debtor’s goods. These can be removed and sold if the debtor fails to pay the sums due and, in most cases, the threat of seizure is usually enough to secure payment.

Frontline Collections have enforced thousands of CCJ’s using our own High Court Enforcement Officers and Sheriffs. Our writs have even been enforced on television as part of various TV Debt Collection documentaries in the past.

Attachment of Earnings Order

This method involves an application to the court for your debt to be paid out of the debtor’s salary by the employer directly to you, usually by way of instalments. For this, you will need the name and address of the debtor’s employer.

Third-Party Debt Order

A third party debt order is usually made to stop the defendant from taking money out of his or her bank or building society account. The money you are owed is paid to you from the account. A third party debt order can also be sent to anyone who owes the defendant money.

The organisation or person that is holding the money is referred to as the ‘third party’. A third party debt order will prevent the defendant from having access to the money until the court makes a decision about whether or not the money should be paid to you. In these proceedings the person who owes you the money is referred to as the ‘judgment debtor’; you are referred to as the ‘judgment creditor’.

Information Order

This is helpful if you are unaware of the means/assets of the debtor. This part contains rules which provide for a judgment debtor to be required to attend court to provide information, for the purpose of enabling a judgment creditor to enforce a judgment or order against him.

Bankruptcy/Winding Up Petition

A winding-up petition is simply an application that a creditor presents to the court when they are owed over £750.

By law, if a company cannot meet its financial obligations and/or its liabilities exceed its assets it is considered legally insolvent. An insolvent company can be forced into compulsory liquidation by any of their unsecured creditors.

The process simple; a written demand requesting payment of a debt greater than £750 is made and your company fails to comply with the demand, they can petition to wind up your company.
Once you have received a winding-up petition you cannot sell the company or its assets and you can only enter into voluntary liquidation.

One-stop Solution

The Collection of an unpaid CCJ can be a daunting task in itself. Most of the time a CCJ is not even necessary to recover unpaid debts and when considering Debt Collection or Legal Action, it is wise to seek advice.

Whether you are a small business wanting payment for an invoice, or an individual chasing a personal debt owed. Getting the right, impartial advice from Experts is a sure way to ensure you get paid with the minimum of cost and time.

Regardless of the situation, our friendly Debt Collection Experts are on hand to advise you. Call us now on  t033 3043 4425 or fill out our enquiry form.