A Glossary of Terms
Money Judgments
Attachment of Earnings Order: - (Article 73)
When a debtor is in employment this office can make this order to deduct a regular sum of money from his/her salary. The debtor is given a 'protected earnings rate’ after a report has been done on them to assess their means. The rate is based upon individual debtors circumstances and will include an allowance for debtor, their partner, and any children. The office also allows for rental/mortgage payments and any rates. The Office will deduct any child benefit payment made for each child. This rate therefore protects an amount of money that they need to live on; the excess amount can then be used to pay off a particular debt. However the Attachment of Earnings Order does not exclude the Office from issuing further enforcement orders, it is merely a means of ensuring regular payment towards a judgment/debt. Under certain circumstances, a debtor may be given the opportunity to object to the Order being made (normal objection period being 8 days) and if a written objection is received the case will be reviewed by a designated officer or in certain circumstance, listed before the Master. After the hearing the terms of the order may be confirmed, suspended or varied according to the circumstance of the case.
Instalment Order: - (Article 30)
If a debtor is self-employed his/her income cannot be attached by the above means, the office then considers what appears to be a reasonable amount for him/her to pay over a period of time either weekly or monthly which is paid directly to the creditor. It is therefore the responsibility of the creditor to keep the office informed of all monies paid or indeed if the debtor defaults in payment. A debtor may be committed to prison for failure to keep up payments due on an Instalment Order.
Order Charging Land: - (Article 46)
If a debtor owns land or has an interest in land/property the Office may 'charge' that land/property to secure payment of the debt and the order has the effect of a charge created by the debtor in favour to the creditor. It is the Creditor/Solicitors responsibility however to register the Order in the Land Registry or Registry of Deeds accordingly. Under current legislation the order ceases to have effect on the expiration of 12 years from the date of the judgment. Also, when a debtor has paid their debt in full, including any interest payable direct to the creditor, they may wish to apply for a Certificate of Satisfaction (currently costing £15) to give proof of it and have the charge removed.
The Seizure Order: - (Article 31)
This is an order directing the Chief Enforcement Officer to seize the debtors' goods to pay the debt/s and enforcement costs. The Office may issue this type of Order when it appears that there are sufficient seizeable goods to satisfy the debt. However it is practice that the Office will look for other relevant means of enforcement e.g. Attachment of Earnings, Instalment Order before issuing this order but if a debtor is un-cooperative or does not have direct financial means and has seizeable goods the may apply to the Master for an Order of Seizure.
There are limitations for the Office as it can only seize goods owned by the debtor and cannot seize goods such as:
- Motor Vehicles or other good subject to Hire Purchase
- Perishable goods
- Tools of the trade up to £200
- Any goods in the hands of a Receiver appointed by a court
- Debtors clothes and essential household furniture.
These conditions are all stipulated in the body of a Custody Warrant.
Order Appointing Receiver: - (Articles 67 & 68)
This type of order is a remedy used very extensively and successfully in day-today practice and is where the Office obtains information that the debtor is about to receive monies from a third party (e.g. a claim, proceeds of house sale etc) and therefore issues the above order so that the Office receives monies due for the purpose of satisfying the debt.
This Article also provides that any person aggrieved by the terms of the order may apply to the Office to have his claim judicially determined.
Attachment of Debt Order (also know as Garnishee Order) (Article 69)
This orders gives the Office the power to 'freeze' a debtors' bank account. It is served personally on the Third party (Garnishee) i.e. a bank and is conditional which gives the garnishee an opportunity to appear before the master to give reasons why the money should not or cannot be paid.
Article70 (2) gives the Master power to determine any dispute and if in doubt to refer the matter to the High Court.
Variations to this Order are Applications under the Crown Proceedings Act 1974 (Rule 57). This states that no order for Attachment of Debts Order can be made in respect of any money due or accruing from the Crown (e.g. The Compensation Agency) except in accordance with this rule.
The Certificate of Unenforceability: - (Articles 18 & 19)
If it appears to the Office that the judgment cannot be enforced within a reasonable timescale, or has no assets, it will issue this Certificate. This will appear on the Public Register and will, in effect, impact upon the credit rating of a debtor.
Non- Money Judgements
Order for Delivery of Possession of Land: - (Article 53)
This type of Order is issued by the Office and personally served on the respondent by an Enforcement Officer who will seek to negotiate and arrangement that does not mean eviction although this is sometimes inevitable. When the Notice is sent out to all persons specified on the order (including persons with an interest in the property) a time limit is given for any of those persons to object to the order, if no objections are made then the Order goes ahead. The Office is required to deliver ' vacant possession' and for that purpose it must remove all goods to a place of safety. The respondent is then entitled to have the goods released to him/her, upon payment of the costs uncured during a forced eviction. If they then fail to claim and remove their goods within one month the Office may (after 7days notice) proceed to sell the items at Auction and pay the monies due to the Creditor.
Order for Delivery of Goods: - (Article 57)
This order is issued when a person is entitled under a court judgment to the delivery of ascertained or specified goods. If the respondent fails to deliver up the goods, the Office may seize and deliver them to the person entitled to them under the order.
