So you have issued Court proceedings; the Judge agreed with you; gave you Judgement in your favour and even awarded you some costs. Things should be looking pretty rosy however, now comes the really hard part: actually getting the money .
The judgement will usually say when the money has to be paid by but if it isn’t paid in accordance with the order there are a number of options which are open to you but sadly none are cost or time free.
If your Debtor owns their own home you can apply for a Charging Order on their property so that when it is sold you will be paid from the proceeds of sale. However you could be waiting a long time to get your money. An application can be made to court for an order to sell the property but this can be quite difficult to get particularly if the Debtor is living in the property with their children.
If you’re not sure what assets they have you can require them to attend Court and provide details to the Court of all of their assets and debts. This can give useful information as to how to how best to proceed to obtain payment. It may disclose that they have bank accounts which you can then apply to the Court payments to be made directly from those accounts.
If they are employed an order can be obtained from the Court for regular deductions from their wages to be paid directly to you, although if they change or lose their job a new application has to be made all over again.
If the debt is more than £750 then an application can be made to make them Bankrupt. Whilst this can be a useful bargaining tool it may not ultimately result in any payments as after all costs for the bankruptcy and payments to the banks etc have been made there may be little left to pay out to you.
The moral is to wherever possible avoid debts arising in the first place through good credit control; if you are selling goods or services have in place terms and conditions which protect you as far as possible and award you interest on monies outstanding .