Third Party Debt Order

Summary

A third party debt order can effectively recover owed money by freezing the debtors bank account and directing funds to the claimant. Defendants can dispute the debt, apply to set aside, or vary the order. A warrant of control allows bailiffs to seize non-essential business items, but they cannot take tools essential for trade. If denied entry, bailiffs may apply for a court order for forced entry, though its at their discretion. Bailiffs must follow legal procedures and are required to attempt debt collection, but forced entry applications depend on asset recovery likelihood.

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I made a money claim against a business and the judge ruled in my favour. A CCJ has been issued, but the defendant has not paid yet. I have the details of the business bank account. How effective is a third party debt order?
A third party debt order can be quite effective in recovering the money you're owed. Here are the key points:
- It allows you to freeze the debtor's bank account.
- The court can order the bank to pay you directly from the debtor's funds.
- It’s useful if the debtor has sufficient funds in their account.
Have you already applied for a third party debt order, or do you need guidance on how to do so?
I would like to know what recourse the defendant has against a third party debt order.
Hi Luigi! Here are some potential recourses the defendant has against a third party debt order:
- Dispute the Debt: The defendant can challenge the debt's validity.
- Apply to Set Aside: They can apply to set aside the order if they believe it was unjustly granted.
- Vary the Order: Request the court to vary the order based on their financial situation.
Has the defendant taken any of these steps yet?
What about a warrant of control?
A warrant of control allows court enforcement agents (bailiffs) to collect the debt you are owed. Key points include:
- Agents can seize and sell the debtor's goods if unpaid.
- Warrant is valid for 12 months.
- Applicable if the debt is over £*.
Do you need help with the application process?
Not yet. The defendant is a used car reseller. I know that the bailiff cannot seize tools essential for the business. Would the used car be deemed essential to the business in this case?
Hi Luigi! In England and Wales, bailiffs cannot seize items essential for the debtor's trade or business. For a used car reseller, a used car might be considered essential for their business. It often depends on the specific circumstances and the necessity of the car for daily operations.
Would you like to know more about the criteria the court uses to determine what constitutes essential business tools?
Yes please. The cars are not used for daily operations, but are bought and sold to make a profit
Hi Luigi! The court will consider whether the items are essential for the debtor's business continuity. In your case:
- If the cars are not essential for daily operations and are bought/sold for profit, they might not be protected.
- The court often evaluates the necessity of the items in generating income.
Would you like to proceed with the warrant of control, or need more guidance on this?
What happens if the bailiff goes to the defendant place of business and they do not let them in?
Hi Luigi! If the bailiff is not allowed entry to the defendant's place of business:
- They can return at a later time.
- They may apply for a court order to force entry.
- Bailiffs can also take other enforcement actions, like freezing bank accounts.
Would you like more details on these actions?
Yes please
Hi Luigi! Here are some additional enforcement actions if bailiffs are denied entry:
- Applying for Forced Entry: Bailiffs can seek a court order to force entry into commercial premises.
- Freezing Bank Accounts: They can freeze the defendant's bank accounts to recover the debt.
- Charging Orders: Place a charge on the defendant's property or assets.
Would you like to know more about any of these actions?
Do I (the claimant) have to apply for forced entry, or will the bailiff do so?
Hi Luigi! Generally, the bailiff will apply for forced entry if required. They may seek a court order to gain access to the premises. You don't typically need to apply for this yourself.
Would you like more information on how bailiffs proceed with forced entry?
Yes please
Hi Luigi! When bailiffs proceed with forced entry:
- They need to obtain a court order specifically allowing them to force entry.
- This order is typically sought if they believe valuable goods are inside which can be used to settle the debt.
- Once granted, they'll arrange a time to return and gain access.
Would you like more details on the court order process or any other enforcement action?
Are the bailiffs legally required to carry out their duties?
Bailiffs are legally required to carry out their duties according to the regulations and guidelines set by the courts. They must follow legal procedures, respect debtor rights, and ensure their actions are lawful and proportionate.
Do you need more information on the specific regulations that govern bailiff conduct?
If the bailiff is denied entry, do they have to apply for forced entry?
Hi Luigi! If a bailiff is denied entry, they generally need to apply for a court order to force entry. This is not automatic and must be justified based on the likelihood of valuable assets being inside.
Do you need more details on the process of obtaining this court order?
So applying for a forced entry is at a bailiff's discretion, is that right?
Hi Luigi! Yes, applying for forced entry is typically at the bailiff's discretion. They assess the situation and decide if it's necessary to seek a court order for forced entry, based on the likelihood of recovering valuable assets. Do you have more questions about the enforcement process?
I see. So the bailiff is legally required to visit the defendant to try collect the debt, but might not be interested in applying for forced entry
Hi Luigi! Yes, you're correct. Bailiffs are legally required to attempt collection of the debt, but they have the discretion to decide whether to apply for a court order for forced entry, depending on the circumstances.
Do you need any further assistance with your case?