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Individual Debtors

Our experienced team understands the challenges faced by individual debtors and works closely with them to explore their options. We provide comprehensive advice on debt management strategies, including negotiation with creditors, debt restructuring, and insolvency options such as bankruptcy or Individual Voluntary Arrangements (IVAs).

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Third Party Debt Orders

  • A Third Party Debt Order is used by creditors who know the debtor’s bank account details.

  • The major benefit of using a Third Party Debt Order to enforce your debt is that the debtor will not know when you make the application for the Order.  They will not be notified until after you have served the Third party  (i.e the bank) with the Court Order. By the time the debtor is made aware of your application and Court Order, their bank account or funds held by a third party have already been frozen either in full or part.

  • Timing is crucial with Third Party Debt Orders as funds are frozen on the day of receipt of the Order by the Third Party. If there are no funds available on that day, the application for the Third Party Debt Order will fail.

  • We always advise our clients on due diligence to ensure they obtain bank details from any clients or customers on commencement of their contractual relationship.

Attachment to Earnings

  • If your debtor is an individual who is employed and you have the name and address of his/her employer, an Attachment of Earnings Order can be made.

  • A proportion of the debtor’s salary is deducted by their employer each month or week to satisfy the Judgment debt.

  • An Attachment of Earnings Order cannot be made against a debtor who is self-employed, unemployed or against a pension income.

Charging Order

  • A CCJ can be secured against any property your debtor owns, whether as a sole or joint owner, by way of a Charging Order which is then registered with the Land Registry.

  • If the debtor jointly owns the property, the charge will then be on their share of the property and not on the property itself. This is much less secure and is often known as a restriction.

  • Unfortunately, a Charging Order or restriction does not guarantee swift settlement of your debt.  Payment is usually only received if your debtor re-mortgages or the property is sold.  There are circumstances where an Order for Sale can be forced by you.

Information Order

  • An Information Order is a Court Order that requires the debtor to attend Court for questioning. It does not require the debtor to make payment.  It is useful to use this method to find out about the debtor's assets.

  • The Order to attend Court gives the debtor a date and time they must attend Court to answer formal questions on their income and expenditure.

  • If the debtor fails to attend, they can be held in contempt of Court which means they can be committed to prison for a short period.   The Information Order is personally served on the debtor.

  • At the appointment, the debtor is given the opportunity to offer payment proposals.  If these are accepted, the Court will make a Variation Order.  This can be enforced in the same way as a Judgment Order if the debtor fails to keep to the arrangement.

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