High Court Debt Enforcement
When a court judgment orders someone to pay a debt, enforcement may be required if the debtor does not comply. In England and Wales, debts exceeding £600 can be transferred to the High Court for enforcement by High Court Enforcement Officers (HCEOs). This method is often faster and more effective than standard enforcement options.
What is High Court Debt Enforcement?
High Court debt enforcement is the process of using HCEOs, also known as enforcement agents or bailiffs, to recover money owed under a court judgment. It is typically used for:
• Unpaid invoices.
• Commercial or personal debts.
• Rent arrears or lease breaches.
Eligibility for High Court Enforcement
Debt Amount: The debt must be over £600 and not related to regulated consumer credit agreements (e.g., credit cards or personal loans).
Court Judgment: A County Court Judgment (CCJ) or High Court judgment must already be in place.
Age of Judgment: The judgment must be less than 6 years old unless specific court permission is obtained.
2) Fast Track:
For claims between £10,000 and £25,000.
Involves a more structured court process with a trial lasting no more than
one day.
3) Multi-Track:
For complex or high-value claims exceeding £25,000.
Includes extensive case management and evidence preparation.
Steps in High Court Debt Enforcement
1. Transfer Up to the High Court
If the judgment was obtained in a County Court, the case must be transferred to the High Court using a Writ of Control.
A solicitor or enforcement agency can assist with this process.
Costs: A court fee of £71 applies for issuing the Writ of Control, recoverable from the debtors.
2. Complete the Claim Form
• Once the Writ of Control is issued, HCEOs are instructed to enforce the debt.
They are authorized to visit the debtor’s property and:
• Request payment in full.
• Secure a Controlled Goods Agreement, where assets are listed as security.
3. Enforcement Visit
HCEOs will:
Serve Notice: Provide a 7-day compliance notice to the debtor, giving them the chance to pay.
Visit the Premises: If the debtor does not pay within 7 days, the HCEO will visit their premises to collect payment or seize goods.
Advantages of High Court Enforcement
1. Faster Recovery: HCEOs act quickly, often recovering debts within weeks.
2. Higher Success Rate: HCEOs have greater authority and flexibility compared to County Court bailiffs.
3. No Upfront Enforcement Costs: The debtor bears most enforcement costs unless recovery is unsuccessful.
4. Authority to Seize Assets: HCEOs can seize valuable goods, vehicles, and stock if payment is not made.
5. Deters Non-Payment: Debtors often prioritize High Court judgments due to the severe consequences of non-payment.
Costs and Fees
Compliance Stage: £75 added to the debt when a compliance notice is issued.
Enforcement Stage: £235 plus 7.5% of the debt value over £1,500 if an enforcement visit is required.
Sale Stage: £110 plus 7.5% of the debt value over £1,500 if goods are seized and sold.
These fees are recoverable from the debtor. If enforcement is unsuccessful, only the £75 compliance fee is typically charged to the creditor.
What Happens if the Debtor Cannot Pay?
1. Controlled Goods Agreement::
• The debtor may sign an agreement allowing them to retain goods while making instalment payments.
2. Goods Seizure:
• HCEOs can seize and sell assets to recover the debt, including vehicles, stock, or equipment.
3. Further Enforcement Options:
• Charging Order: Securing the debt against the debtor’s property.
• Attachment of Earnings: Deducting money directly from the debtor’s wages.
When High Court Enforcement May Not Be Effective
• If the debtor has no assets of value.
• If the debtor is insolvent or has entered into an Individual Voluntary Arrangement (IVA) or bankruptcy.
• If the debtor is disputing the judgment or has applied to set it aside.
How We Can Help
At Acme Credit Consultants, we specialize in High Court debt enforcement and offer expert guidance to ensure a swift recovery of your funds. Our services include:
Transferring Judgments: Assisting with the transfer of County Court judgments to the High Court.
HCEO Instructions: Arranging for High Court Enforcement Officers to act on your behalf.
Debt Recovery Strategy: Advising on the most effective enforcement methods based on the debtor’s circumstances.
Contact Us for Support
If you’re struggling to recover a debt, let us help you take decisive action through High Court enforcement.
Call us now: 0208 568 9687
Email us: debt@cohmen.tech
Website: www.acmecredit.co.uk
Visit Us: Acme House, 136 High Street, West Drayton, Middlesex UB7 7BD