## **Learning Outcomes**

This article outlines the enforcement of money judgments in England and Wales, including:

- Primary methods of enforcing money judgments: taking control of goods, third party debt orders, charging orders, and attachment of earnings orders
- Procedures and key legal considerations for each method of enforcement
- High Court versus County Court enforcement (writ of control vs warrant of control), including consumer credit limitations
- Statutory protections for judgment debtors (exempt goods, tools-of-the-trade cap, protected earnings rate)
- Interim and final stages for third party debt orders and charging orders, including registration and service requirements
- Likelihood of orders for sale and judicial factors (co-ownership and family home considerations)
- Accrual of judgment interest in the High Court and County Court and the effect of commencing enforcement
- Orders to obtain information from the judgment debtor to inform enforcement choice and sequence
- Court permission requirements for concurrent enforcement methods, including when an attachment of earnings order is in place
- Application of relevant rules to SQE1-style single best answer questions concerning post-judgment debt recovery

## **SQE1 Syllabus**

For SQE1, you are required to understand the practical, application-focused enforcement of money judgments, including advising a judgment creditor on the most suitable enforcement method or identifying the legal consequences of using a particular method, with a focus on the following syllabus points:

- the main methods of enforcing money judgments: taking control of goods, third party debt orders, charging orders, and attachment of earnings orders
- the procedural requirements associated with each method of enforcement
- the types of assets targeted by each method and the circumstances in which each method is most appropriate
- key limitations and protections for the judgment debtor, such as exempt goods and protected earnings
- the accrual of interest on judgment debts and where it differs between the High Court and County Court
- preliminary steps to obtain information (e.g., order to obtain information) to guide enforcement choices
- using more than one enforcement method, including any restrictions or need for permission when an attachment of earnings order is in place.

## **Test Your Knowledge**

_Attempt these questions before reading this article. If you find some difficult or cannot remember the answers, remember to look more closely at that area during your revision._

1. Which enforcement method directly targets funds held by a bank belonging to the judgment debtor?
   a) Charging order
   b) Taking control of goods
   c) Attachment of earnings order
   d) Third party debt order.

2. What is the minimum notice period required before an enforcement agent can take control of a debtor's goods at their premises?
   a) 24 hours
   b) 3 clear days
   c) 7 clear days
   d) 14 clear days.

3. Which of the following assets are generally considered 'exempt goods' when taking control of goods?
   a) A luxury watch
   b) Basic household furniture
   c) Tools of the trade above a certain value
   d) A second vehicle not used for work.

## **Introduction**

Obtaining a court judgment ordering a party (the judgment debtor) to pay a sum of money to another party (the judgment creditor) is often only the first step. If the debtor fails to pay voluntarily, the creditor must take further action to enforce the judgment and recover the debt. Understanding the available enforcement mechanisms is essential for advising clients on the practical steps involved in turning a judgment into recovered funds.

The primary methods of enforcement against a judgment debtor's assets within England and Wales include taking control of goods, third party debt orders, charging orders, and attachment of earnings orders. The choice of method depends on the debtor's circumstances, particularly the nature and location of their assets. It is often necessary to obtain information about the debtor's means before deciding on the most effective enforcement strategy.

> **Key Term: order to obtain information**
> A court order (CPR Part 71) requiring the judgment debtor, or an officer of a debtor company, to attend court and answer questions on oath about means and assets to assist the judgment creditor in choosing an enforcement method.

In England and Wales, interest may accrue on judgment debts. High Court judgments carry statutory interest at 8% per annum (unless varied contractually) from the date of judgment. County Court interest is generally payable at the same rate only on judgments of £5,000 or more and may stop accruing when County Court enforcement commences unless the enforcement produces no payment. Knowledge of interest rules and the debtor’s asset profile helps determine the timing and forum of enforcement.

## METHODS OF ENFORCEMENT

This section explores the main methods used by judgment creditors to enforce money judgments. For SQE1, you must understand the core procedures and applications of each.

### Taking Control of Goods

This method involves seizing the judgment debtor's goods and selling them to satisfy the debt. It is commonly used when the debtor has valuable physical assets. The process is governed primarily by the Tribunals, Courts and Enforcement Act 2007 (TCEA 2007) and the Taking Control of Goods Regulations 2013.

The creditor first obtains a **writ of control** (High Court) or **warrant of control** (County Court).

> **Key Term: writ of control / warrant of control**
> A court authority permitting an enforcement agent to take control of a judgment debtor's goods to satisfy a debt.

Which court? If the judgment was obtained in the High Court, enforcement proceeds there. If the judgment was obtained in the County Court:

- less than £600: enforce in the County Court by warrant of control
- £600 or more but less than £5,000: creditor may choose County Court or transfer up for High Court enforcement (more robust in practice)
- £5,000 or more: enforce in the High Court (except Consumer Credit Act-regulated judgments, which must remain in the County Court irrespective of amount).

> **Key Term: certificate of judgment**
> A document confirming judgment details and amounts (including interest and any costs allowed) required to request a High Court writ of control following County Court judgment.

An **enforcement agent** (formerly known as a bailiff), certificated by the court, carries out the enforcement. Before visiting the debtor's premises to seize goods, the agent must give the debtor at least seven clear days' notice of enforcement (Schedule 12, TCEA 2007).

> **Key Term: enforcement agent**
> A person certified by the court to take control of goods under a writ or warrant of control.

The agent attends the debtor's premises to identify goods that can be taken. Entry to residential premises must be peaceable (no forced entry on first attendance). Reasonable force may be used for entry to commercial premises without living accommodation if the debtor’s goods are inside and statutory conditions are met. Execution cannot occur on Sundays, Good Friday, or Christmas Day.

Once present, the agent may secure goods, remove them, or enter into a controlled arrangement:

> **Key Term: controlled goods agreement**
> An agreement by which the debtor acknowledges the enforcement agent’s control over specified goods and undertakes not to dispose of them, often in return for an instalment plan; breach may result in removal and sale.

Certain goods are protected.

> **Key Term: exempt goods**
> Goods that cannot be taken by an enforcement agent, such as basic household items, clothing, bedding, and tools of the trade up to a prescribed value (currently £1,350).

Exemptions include basic domestic needs (e.g., cooker, refrigerator, beds, chairs, tables) and items necessary for personal use in work or study up to an aggregate value of £1,350. Goods belonging exclusively to a third party or under hire/hire purchase agreements cannot be removed (though the creditor may need to challenge ownership disputes via CPR Part 85). The agent must make and provide an inventory of controlled goods. Proceeds of an auction sale, after fees and costs, are applied to the debt, with any surplus returned to the debtor.

High Court enforcement officers are generally perceived as more effective than County Court bailiffs, and in High Court enforcement, judgment interest continues to accrue during enforcement.

### **Worked Example 1.1**

A judgment creditor obtains a warrant of control against a debtor who runs a small food service business from home. The enforcement agent attends the debtor's home. Can the agent take control of the debtor's commercial-grade oven used for the business (valued at £2,000) and the family television?

> **Answer:** The television is likely a basic household item and may be **exempt**. The commercial oven is a tool of the trade. As its value (£2,000) exceeds the current statutory limit (£1,350), the agent **can** take control of it. The agent must act reasonably and follow the correct procedures.

### Third Party Debt Orders

This method allows a judgment creditor to intercept money owed to the judgment debtor by a third party. It is most commonly used to obtain funds held in the debtor's bank or building society accounts.

The creditor applies to the court without notice to the debtor for an **interim third party debt order**.

> **Key Term: interim third party debt order**
> A temporary court order freezing funds owed to the judgment debtor by a third party (like a bank) and preventing payment to the debtor.

If granted, the interim order is served on the third party (e.g., the bank) and the judgment debtor. The third party must freeze the debtor's account up to the amount specified in the order. A hearing is then listed no earlier than 28 days after the interim order, at which the debtor can object. The order only captures money present at the time the interim order is served on the third party; later credits are not caught unless a further application is made.

If there are no valid objections, or objections are dismissed, the court may make a **final third party debt order**, requiring the third party to pay the frozen funds directly to the judgment creditor.

> **Key Term: final third party debt order**
> A court order directing a third party (holding funds owed to the judgment debtor) to pay those funds directly to the judgment creditor.

Key points:

- the debt must belong to the judgment debtor solely and beneficially
- joint accounts are generally not caught unless all account holders are judgment debtors
- recurring payments such as wages are not appropriate for third party debt orders; attachment of earnings orders are used instead
- trade debts owed to a debtor business can be targeted where the payer is identifiable and within the jurisdiction.

### **Worked Example 1.2**

A creditor obtains judgment for £4,000. The debtor has a joint current account with their partner holding £3,500 at the moment the interim order is served. Can the creditor rely on a third party debt order to obtain those funds?

> **Answer:** Generally, funds in a joint account will not be caught unless all the account holders are judgment debtors. The third party debt order attaches only funds solely and beneficially owned by the debtor. The creditor should consider alternative methods, such as taking control of goods or a charging order, depending on the debtor’s other assets.

### Charging Orders

A **charging order** secures the judgment debt against the debtor's beneficial interest in certain assets, most commonly land or securities (like shares). It does not directly produce payment but converts the judgment creditor into a secured creditor.

> **Key Term: charging order**
> A court order imposing a charge over a judgment debtor's interest in property (e.g., land, shares) to secure the judgment debt.

Procedure overview:

- the creditor applies for an interim charging order, usually without notice
- the interim order is served on the debtor and other affected parties (e.g., co-owners, mortgagees), and registered against the asset where applicable (e.g., Land Registry for land)
- objections must be filed within the specified time (typically 28 days of service)
- the court then considers whether to make the order final at a hearing, exercising discretion and considering all relevant circumstances.

Once a charging order is final, creditors may further protect or realise the security:

- for land: register the charge, then consider an application for an **order for sale** if voluntary sale is unlikely
- for securities: consider ancillary orders such as stop orders and stop notices to prevent transfers.

> **Key Term: order for sale**
> A subsequent court order, obtained after a final charging order, compelling the sale of the charged property so the proceeds can be used to pay the judgment debt.
>
> **Key Term: stop order / stop notice**
> Stop orders (and stop notices) are protective orders under CPR Part 73, used with securities to restrict dealings (e.g., transfers) with charged stocks or shares pending enforcement.

Courts are careful when asked to order sale of a family home, particularly where co-owners or dependants live there. Where co-ownership is involved and sale is sought, the court will consider all the circumstances, including the purpose for which the property is held, the welfare of any minor occupiers, the interests of secured and unsecured creditors, and the debtor’s share of equity. The ranking of secured interests matters; earlier charges (e.g., mortgages) will be paid first from sale proceeds.

Obtaining a final charging order secures the debt but does not by itself guarantee payment. The asset may have insufficient equity once prior charges are taken into account; sale may be deferred or refused, especially for a family home.

### **Worked Example 1.3**

A creditor has a judgment for £20,000 against a debtor who jointly owns a house (worth £300,000, mortgage £150,000) with their spouse. The creditor obtains a final charging order against the debtor's interest. What is the immediate effect, and what further step is needed for payment?

> **Answer:** The immediate effect is that the £20,000 debt is **secured** against the debtor's share of the equity in the house. The creditor now ranks as a secured creditor. To obtain payment, the creditor must apply for an **order for sale**. The court will consider the circumstances, including the spouse's interest and whether it's a family home, before deciding whether to grant the order.

### Attachment of Earnings Orders

If the judgment debtor is employed (not self-employed), the creditor can apply for an **attachment of earnings order**. This requires the debtor's employer to make regular deductions from the debtor's salary and pay them to the court, which then forwards the money to the creditor.

> **Key Term: attachment of earnings order**
> A court order directed to a judgment debtor's employer, requiring them to deduct sums from the debtor's earnings and pay them towards the judgment debt.

The court calculates a **protected earnings rate (PER)** – the minimum amount the debtor needs to live on. Deductions can only be made from earnings above the PER.

> **Key Term: protected earnings rate (PER)**
> The minimum amount of earnings the court decides a debtor needs for basic living expenses, which cannot be touched by an attachment of earnings order.

Core features:

- available only in the County Court and only against individuals in employment
- not available against the self-employed or where the debtor’s income is comprised solely of benefits
- the employer must comply by making deductions and paying the sums to the court; failure by the debtor to disclose employment or comply can lead to sanctions, including fines or, in serious cases, committal
- orders may be varied or suspended on application if the debtor’s circumstances change (e.g., employment changes or income falls).

Where an attachment of earnings order is in place, the creditor may still use other enforcement methods to secure any remaining debt, but court permission may be necessary to enforce by taking control of goods while an attachment of earnings order is active.

### **Worked Example 1.4**

A creditor has judgment for £3,600 against an employed debtor paid monthly. The court sets a protected earnings rate of £1,600 per month and monthly deductions of £300. The debtor later switches to part-time work and asks to reduce payments. What can happen?

> **Answer:** The debtor can apply to vary the attachment of earnings order. The court will reassess the debtor’s means and may reduce the deduction amount to maintain the protected earnings rate, suspend the order, or set new terms if appropriate. The creditor can object and the court will balance repayment with the debtor’s reasonable living needs.

### **Revision Tip**

> Remember that choosing the right enforcement method depends entirely on the debtor's known assets and circumstances. Obtaining information about the debtor's financial position (e.g., through an order to obtain information) is often an essential preliminary step. Consider the speed, costs, likely recovery, and any statutory protections before committing to an enforcement route. Multiple methods can be used in sequence or concurrently, but be alert to any restrictions and the need for court permission.

## **Key Point Checklist**

_This article has covered the following key knowledge points:_

- Enforcement is necessary when a judgment debtor does not pay voluntarily.
- Taking control of goods involves seizing and selling the debtor's physical assets (subject to exempt goods rules) via an enforcement agent after obtaining a writ/warrant of control and giving 7 days' notice; High Court enforcement may be more effective and interest continues in the High Court.
- Third party debt orders freeze and capture funds owed to the debtor by a third party, typically a bank (interim order followed by final order), but only the balance present at service of the interim order is caught; joint accounts are generally excluded unless all account holders are judgment debtors.
- Charging orders secure the debt against the debtor's interest in property (e.g., land, shares), making the creditor secured; a further order for sale is required to realise funds, and courts exercise discretion especially where a family home and co-owners are involved.
- Attachment of earnings orders compel an employer to deduct payments from a debtor's salary above the protected earnings rate; orders can be varied or suspended to reflect changing circumstances.
- Interest on judgment debts accrues differently in the High Court (8% per annum under the Judgments Act) and the County Court (generally 8% for £5,000+), and County Court interest may cease on commencement of enforcement unless enforcement fails to yield payment.
- The choice of method depends on the debtor's assets (goods, bank funds, property, employment status), and practical steps to obtain information (order to obtain information) are often necessary.
- Multiple methods can be used, but check whether court permission is needed to enforce by taking control of goods where an attachment of earnings order is in force.

## **Key Terms and Concepts**

- writ of control / warrant of control
- certificate of judgment
- enforcement agent
- controlled goods agreement
- exempt goods
- interim third party debt order
- final third party debt order
- charging order
- stop order / stop notice
- order for sale
- attachment of earnings order
- protected earnings rate (PER)
- order to obtain information

Enforcement of judgments - Enforcement of money judgments