Attachment of Earnings

You can ask the court to send an order to the person’s employer, to take money from wages to pay the debt.

Freeze assets or money in an account

The court can freeze money in the person’s bank or building society account (or in a business account).

Charge the person’s land or property

You can ask the court to charge the person’s or company’s land or property.

If the land or property is sold, they must pay this charge before they get their money.

Send bailiffs to collect payment

You can ask the court to use bailiffs to collect the money.

The bailiff will ask for payment within 7 days.

If the debt isn’t paid, the bailiff will visit the person’s home or business, to see if anything could be sold to pay the debt.

Warrant of Execution
 
If Judgment has been passed and the debt remains unpaid the Creditor may apply for a Warrant of Execution. 
 
A notice of warrant will be issued to the debtor. If payment is not made a bailiff can be sent to collect payment or seize goods.
 
Walking Possession
 
A bailiff (for the County Court) or Sheriff (for the High Court) may visit your premises and obtained entry under a distraint notice.    They will ask for payment of the proven debt.    If you are unable to pay this (plus costs) the bailiff can take possession of goods, equipment, fixtures, stock etc on the premises.
 
If you do not reach a deal or pay in full he can remove and sell the assets in 5 days.
 
It is a criminal offence for you to sell the assets after walking possession has been taken.
 
If the bailiff has obtained a walking possession he can force entry to recover the goods after the 5 day period. 
 
Distraint
 
Landlords may take distraint when rent or other payments are not made.
 
An agent of the landlord can effect entry to remove goods or assets for sale to pay for the debt due almost immediately it falls due and remains unpaid.
 
A landlord does not need to obtain judgment before effecting distraint.

 

Statutory Demand
 
A formal demand for payment of an undisputed debt (over £750) – the debt must be paid within 21 days of the demand being issued.
 
Failure to pay a statutory demand can lead to a winding up petition being issued.

 

Following an unpaid statutory or written demand for payment a creditor may elect to petition the court for the winding up of the Company. 
 
Typically a Winding up Petition costs over £1200 to action.  If a creditor is prepared to expend this money then their intentions are extremely serious.
 
If the petition debt is undisputed then in due course the petition hearing will be advertised. At this stage the bank will find out and they will freeze the Company’s bank account to prevent any misfeasance or sale of assets at undervalue or other illegal acts by the partners.
 
If the petition remains undefended or unpaid the Official Receiver will ultimately be appointed liquidator of the Company.

Banking Petition

Following an unpaid statutory demand a creditor may elect to petition the court for bankruptcy of an individual.

If the petition remains undefended or unpaid the Official Receiver will ultimately be appointed Liquidator of the Company.