Debt Recovery and Enforcement

3 Matter Plans Included

ALERTS - Nil
Full Commentary - Debt Recovery - Acting for the Claimant
Reference materials
- Electronic Signing and Witnessing
- Looking to the Future
- Article: Alternative dispute resolution
- Article: Costs actually
Overview and limitation periods

Debt recovery is the collection of money from a person or business, due under a commercial contract or arrangement. The same law applies whether the debt due is a small claim or a large claim that may eventually be determined in the High Court. In England and Wales there is a single County Court ...
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Summary of the process

The usual steps in acting for a claimant in a debt recovery matter are:
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A. Getting the matter underway
- File cover sheet - Debt recovery
- To do list - Debt recovery - Acting for the claimant
- First steps
- Retainer instructions - Debt recovery
- Compliance documents
  - Client Due Diligence and Anti-money Laundering Guidance
  - Client Details, Identity Verification and Source of Funds
  - Conflict of interest check
  - Client and matter risk assessment
  - If required - Reporting an issue
    
    Anti-money laundering internal disclosure
- Initial letter to client enclosing Client Care and Terms of Business
- Enclosures for initial letter to client
  - Client care information
  - Terms of business
  - Scope of work - Debt recovery - Acting for the claimant
  - Enclosure - Overview of the litigation process from a claimant's point of view
  - A summary of the dispute resolution process
- Funding
  
  Standard retainer Under a standard retainer, the solicitor’s costs and all disbursements and expenses are paid to the solicitor as they fall due.
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- If required - Conditional fees and damages-based agreements
  - Conditional fee agreement
    
    A conditional fee agreement is a no-win, no-fee arrangement based on the premise that a client is not responsible for the solicitor’s costs if the case is unsuccessful. Section 58(2)(a) of the Courts and Legal Services Act 1990 defines a conditional fee agreement as:
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  - Conditional fee agreement
  - Letter to client explaining barrister's fees
  - Letter to client giving informed consent to conditional fee agreement
  - Enclosure - Conditional fee agreements explained
  - Damages-based agreements
    
    A damages-based agreement is a contract between a solicitor and client that, if the client’s claim is successful, the solicitor will be entitled to a share of the recoveries. Damages-based agreements are different from conditional fee agreements in that they can be used only with claimant clients.
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  - Damages-based agreement
  - Letter to client enclosing damages-based agreement for signing
  - Enclosure - Damages-based agreements
  - Notice of funding of case or claim
- Time and costs estimates
- If required - Letter to client varying the Client Care and Terms of Business
  - Letter to client varying the Client Care and Terms of Business
- General deeds, agreements, statements, declarations, consents, and execution clauses
  - Deeds and agreements
  - Deeds
    
    Deed for general use
    
    Deed of assignment of agreement
    
    Deed of assignment of agreement with consent
    
    Deed of assignment of an insurance policy
    
    Deed of assignment of equitable interest in residential land
    
    Deed of gift
    
    Deed of guarantee
    
    Deed of release
    
    Deed of release and grant
    
    General deed of indemnity
    
    Library of standard clauses for deeds
    
    Amendment
    
    Confidentiality
    
    Confidentiality - Extensive
    
    Costs
    
    Counterparts
    
    Dispute resolution
    
    Events beyond control
    
    Governing law and jurisdiction
    
    Interpretation
    
    No assignment
    
    Notices
    
    Severance
    
    Third parties
    
    Waiver
    
    Whole agreement
  - Agreements
    
    Agreement for general use
    
    Boundary agreement
    
    Confidentiality agreement
    
    Construction agreement
    
    Heads of agreement
    
    Library of standard clauses for agreements
    
    Amendment
    
    Confidentiality
    
    Confidentiality - Extensive
    
    Costs
    
    Counterparts
    
    Dispute resolution
    
    Events beyond control
    
    Governing law and jurisdiction
    
    Interpretation
    
    No assignment
    
    Notices
    
    Severance
    
    Third parties
    
    Waiver
    
    Whole agreement
  - Statements and declarations
    
    Statement of truth
    
    Statement of truth - High Court
    
    Statutory declaration
    
    Statutory declaration of solvency
    
    Affidavit - General
    
    Exhibit sheet for affidavits - General
    
    Witness statement - Family matters
    
    Exhibit sheet to witness statement - Family matters
    
    Witness statement - Civil matters
    
    Exhibit sheet to witness statement - Civil matters
  - Execution clauses
    
    Execution clauses - Agreements and contracts
    
    Execution clauses - Deeds
    
    Execution clauses - Overseas companies
  - Consents
    
    If required - Personal data consent - General
    
    Letter to client enclosing consent - General
    
    Letter to third party enclosing consent - General
    
    General letter enclosing client consent
    
    General letter enclosing third party consent
    
    Consent to provide information - General
    
    Consent to provide information - General - Third party
    
    If required - Personal data consent - Health professional
    
    Letter to client enclosing consent - Health professional
    
    Letter to third party enclosing consent - Health professional
    
    Letter to doctor enclosing client consent
    
    Letter to doctor enclosing third party consent
    
    Consent to provide information - Health professional
    
    Consent to provide information - Health professional - Third party
    
    Change of name
    
    Change of name deed for an adult - Concise
    
    Change of name deed for a minor - Concise
    
    If required - Enrolment by an adult
    
    Change of name deed for an adult - For enrolment
    
    Statutory declaration - Enrolment of adult change of name deed
    
    Notice for the London Gazette on the change of name of an adult
    
    Consent to enrolment of change of name of an adult
    
    If required - Enrolment by a minor
    
    Change of name deed for a minor - For enrolment
    
    Statutory declaration - Enrolment of minor change of name deed
    
    Affidavit of best interest for the change of name of a minor
    
    Consent to enrolment of change of name of a minor
B. Preparatory casework and letters before claim
- Initial considerations for debt recovery claims
  
  Before issuing proceedings or even sending a Letter of Claim, also known as a letter before action, the following need to be confirmed:
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- Ability to pay
  
  Consideration should also be given to the debtor’s ability to pay a judgment. Sometimes a client may need to consider whether to write the debt off rather than throw good money after bad. An unemployed debtor or a struggling company may not have the assets at hand or money in the bank to pay any ...
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- In office debtor research
- Request for and result of search in the attachment of earnings index
- Prompt Payment Code
  
  If the debtor is a signatory to the Prompt Payment Code and has not adhered to its criteria, a complaint can be made to the compliance board. Although adherence to the code is voluntary, sanctions and removal are made public. The code requires signatories to pay 95% of all invoices within ...
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- Letter to client comparing court proceedings with statutory demand
- Initial demand letter before action to debtor
- Letter to client confirming initial demand letter before action has been sent
- Letter to debtor chasing for response
- Pre-action protocols
  
  The Civil Procedure Rules specify pre-action protocols as set out in Practice Direction – Pre-Action Conduct and Protocols, including the steps the court expects parties typically to take before commencing proceedings. The objectives of the pre-action conduct and protocols are to:
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- Letter to client advising on protocols
- Pre-action protocol for debt claims
- Practice direction - Pre-action conduct and protocols
- Letter to client confirming instructions to issue proceedings despite non-compliance with protocols
- Letter of Claim
  
  Under the protocols, every case begins with correspondence between the opposing sides to establish the basis of the claim, allowing each side to have enough information to decide where they stand and attempt an early settlement of the matter without recourse to the courts. A Letter of Claim, also ...
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- Letter of claim to defendant
- Letter of claim to defendant's solicitor
- Enclosures for letters of claim - Pre-action protocol
  - Pre-action protocol for debt claims
  - Pre-action protocol for debt claims - information sheet
  - Pre-action protocol for debt claims - reply form
  - Enclosure - Financial statement
- Certificate of service
- The debtor’s reply
  
  See paragraph 4 of the Pre-Action Protocol for Debt Claims and the Reply Form which is Annex 1 to it. When an unrepresented debtor responds to the Letter of Claim they should use the Reply Form which should have been provided with the Letter of Claim. If the debtor is represented, their ...
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C. Settling the matter
- Alternative dispute resolution
  
  A court has discretionary power to order parties in court proceedings to engage in alternative dispute resolution (ADR), James Churchill -v- Merthyr Tydfil County Borough Council [2023] EWCA Civ 1416. Mr Churchill claimed against his council for damage caused to his property by Japanese knotweed. ...
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- Letter to the other side’s solicitor suggesting alternative dispute resolution
- Mediation service – Small claims track cases
  
  The Civil Procedure Rules provide for the referral of small claims track cases to the Small Claims Mediation Service, run by HM Courts & Tribunals Service: Practice Direction 51ZE – Small Claims Track Automatic Referral to Mediation Pilot Scheme. As with all forms of ADR, this provides an ...
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- Mediation settlement agreement
- Offers to settle
  
  Opportunities arise to settle disputes, even when the parties’ relationship has soured. Settling the dispute can reduce costs and stress for all parties.
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- Letter to defendant’s solicitor making Calderbank offer
- Part 36 offers
  
  Part 36 of the Civil Procedure Rules provides for making an offer that will be treated as without prejudice except as to costs. This means that the fact that a Part 36 offer has been made, and the terms of such an offer, must not be communicated to the trial judge until the case has been ...
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- If required - Part 36 offers
  - Enclosure - Part 36 offers
  - Letter to client suggesting making a Part 36 offer
  - Offer to settle (Section I Part 36)
  - Letter to other side's solicitor making Part 36 offer
  - Letter to client enclosing copy Part 36 offer made
  - Letter to client enclosing copy Part 36 offer received
- Settlement agreement
- Letter to client with draft settlement agreement
- Letter to other side's solicitor with settlement agreement
- Letter to court confirming settlement
- General form of judgment or order
- Library of example consent orders
  - Clause - Consent order for judgment notation of agreement
  - Clause - Consent order payment inclusive of costs
  - Clause - Consent order judgment in favour of one party
  - Clause - Consent order for proceedings to be dismissed with no order as to costs
  - Clause - Consent order for acceptance of lesser sum
- Letter to other side's solicitor sending draft consent order
- Letter to court filing draft consent order on settlement
- Debt statement
- Letter to debtor enclosing debt statement
D. Court practice and procedure
- Prior to issuing proceedings
  
  Prior to issuing proceedings it is important to consider that:
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- Limitation issues
  
  If a matter is close to its limitation date, it is possible to issue but not serve the proceedings as a protective measure. This allows for further instruction or investigation where required, or further negotiation if possible. The claim form can be sent for issue with a covering letter requesting ...
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- If required - Limitation issues
  - Standstill agreement to extend limitation
  - Standstill agreement to suspend limitation
- Part 7 claims
  
  The issue of proceedings is governed by Part 7 of the Civil Procedure Rules and Practice Direction 7A, supplemented by Practice Direction 7C, which deals with online claims. Most debt claims are issued in the County Court on paper. However, online proceedings are available in some ...
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- Electronic filing
  
  Courts and tribunals are continually developing ways to commence and manage cases electronically. In the Royal Courts of Justice and Upper Tribunals, the Courts Electronic Filing System (CE-File) allows for the digital issue and management of cases. The system incorporates electronic filing ...
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- Online portals
  
  Damages Claims Portal The Damages Claims Portal is governed by Practice Direction 51ZB and is for legal practitioners to use when making a claim for damages.
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- Issue a claim for damages with MyHMCTS
- Money Claim Online (MCOL)
- Paper proceedings
  
  Multiple claims and claimants Unlike an online claim, r 7.3 of the Civil Procedure Rules permits any number of claims and claimants to be covered by one paper claim form. Multiple claims which can be dealt with in this way are subject to the following criteria:
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E. Statements of case, filing and service
- Starting a claim online with MCOL
  
  See Practice Direction 7C for further information about starting a claim. Logging into MCOL opens a homepage that provides the option to start a new claim. To request the issue of a claim form, the online form needs to be completed and submitted, and the appropriate fee paid electronically.
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- Starting a paper claim
  
  The Claim Form for disputes in the County Court is form N1 which requires the following information.
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- Claim form (CPR Part 7)
- Claim form (N1SDT)
- Particulars of claim
- Clause - Particulars of claim
- Letter to court filing claim
- Service
  
  It is usual for the claimant to request that the court serves the claim. The claim will be issued within two working days from the date it is submitted online, and the claimant will be posted a notice confirming the issue date. The issue date can also be checked online by accessing Claim Overview.
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- Claimant service
  
  It may be preferable for the claimant’s practitioner to effect service on behalf of the claimant, but it should be noted that a failure to serve the claim form properly can be fatal to a claim: Part 6 of the Civil Procedure Rules. If claimant service is required, the appropriate box must be ...
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- Letter to defendant serving claim
- Letter to defendant's solicitor serving claim
- Enclosures for letter serving claim - Response pack
  - Guidance for defendants replying to the claim form: N1C
  - Response pack
  - Admission (specified amount)
  - Admission (unspecified amount, non-money and return of goods claims)
  - Defence form
  - Defence and counterclaim (specified amount)
  - Defence and counterclaim (unspecified amount, non-money and return of goods claims)
- Letter to defendant providing particulars of claim after MCOL claim
- Letter to court providing particulars of claim after MCOL claim
- Certificate of service
- Defendant’s response
  
  The defendant’s options for responding are set out in Part 9 of the Civil Procedure Rules. They can:
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- Example content - Reply to defence
- Extension of time
  
  If the defendant needs more time to respond, consent for an extension is to be sought from the claimant before the time limits expire. Rule 2.11 provides some capacity for parties to agree time limit variations between themselves. Rule 15.5 notes that the parties may agree that the period ...
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- Letter to defendant's solicitor responding to request for extension of time
- Counterclaims and additional claims
  
  Part 20 of the Civil Procedure Rules sets out the requirements for counterclaims by the defendant against the claimant or a third party, and other additional claims such as a defendant seeking contributions or indemnity from a third party. The rule reiterates the overriding principle that ...
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F. Interim applications
- Security for costs
  
  As part of a response, the defendant may apply to the court for security for costs under r 25.12 of the Civil Procedure Rules. This is an application to require the claimant to pay a sum of money into court to protect the defendant’s ability to claim their costs back if they are successful in ...
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- Letter to court filing documents
- Default judgment
  
  Where the defendant has failed to respond to a claim, either at all or within time, a claimant may apply for default judgment pursuant to Part 12 of the Civil Procedure Rules. It is a purely administrative procedure and does not require a court hearing. See Time limits for responding.
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- Letter to client with advice about default judgment
- Request for judgment and reply to admission (specified amount)
- Summary judgment
  
  The court may give summary judgment when it believes that either the claimant has no real prospect of succeeding, the defendant has no real prospect of defending the claim, or there is no other compelling reason why the case or issue should be disposed of at a trial. If so, the court gives judgment ...
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- Letter to client with advice about summary judgment
- Application notice
- General form of judgment or order
- Letter to court filing documents
- If required - Evidence
  - Letter to court filing written evidence
  - Letter to other side's solicitor serving written evidence
- Letter to client after summary judgment success
G. Case management and directions
- Transfer of claims
  
  Usually, claims are dealt with by the court closest to the defendant’s address or the County Court in Central London. Rule 26.2A enables the transfer of money claims in specific circumstances, including where a court officer considers that the claim should be referred to a judge for directions ...
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- Provisional allocation
  
  The parties will receive a notice provisionally allocating the defended claim to one of four tracks. This occurs before the parties file their directions questionnaires. The tracks are:
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- Directions questionnaires
  
  Directions questionnaires request information to assist the court in confirming the allocation of a case and enable active management of its progress through the court. Rule 26.8 provides that when deciding the track for a claim, the court will consider such matters as the financial value of ...
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- Directions questionnaire (small claims track)
- Directions questionnaire (fast track, intermediate track and multi-track)
- Enclosures for directions questionnaire - Disclosure and costs
  - Disclosure reports
    
    Rule 31.6 requires parties to a multi-track case to serve a Disclosure Report verified by a statement of truth not less than 14 days before the first case management conference. The standard procedure is to do this when returning the Directions Questionnaire. The report is required to ...
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  - Disclosure report
  - Costs budgets
    
    For most multi-track cases r 3.13 requires the filing of a costs budget. Unless the court orders otherwise, the parties must file costs budgets:
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  - Costs budget (Precedent H) and budget discussion report (Precedent R)
  - Precedent T - (budget variation summary sheet)
  - Using the automated app – Precedent H – Costs budget
  - Using the automated app – Precedent S – Bill of costs
- Letter to client confirming costs budget
- Letter to defendant's solicitor serving costs budget
- Directions
  
  Directions are given to parties by the court to assist trial preparation. They are intended to:
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- Small claims track standard directions
- Small claims track special directions
- Fast track standard directions
- Multi-track standard directions
- Listing questionnaire
  
  Also known as pre-trial checklists, these apply to fast, intermediate and multi-track cases when considered appropriate. Effectively a second part of the directions procedure, they seek information from the parties to enable the court to list the case and fill any gaps in getting the case from ...
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- Listing questionnaire (pre-trial checklist)
- Letter to court filing documents
- Application notice
- General form of judgment or order
H. Disclosure and evidence
- Disclosure
  
  Disclosure is the stage in a case at which parties share the information on which they are basing their case, together with anything else that affects the case. In keeping with the overriding objective of the Civil Procedure Rules, this is to enable the case to be dealt with as efficiently as ...
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- Letter to client regarding disclosure
- Procedure for standard disclosure
  
  A point that catches the unwary is that the Civil Procedure Rules only provide a process for standard disclosure. If the court orders non-standard disclosure, the judge must give directions on the procedure the parties are to follow. The procedure for standard disclosure is set out in r 31.10 ...
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- Standard disclosure
- Electronic documents questionnaire (Civil Procedure Rules Practice Direction 31B)
- Disclosure reports and other provisions for multi-track cases
  
  Disclosure reports are referenced above in relation to directions questionnaires: r 31.5(3)–(4) of the Civil Procedure Rules. A disclosure report needs to briefly describe what documents exist that may be relevant to the matter, their location, and the costs involved in disclosing the ...
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- Disclosure report
- Letter to other side's solicitor enclosing disclosure report
- Other disclosure provisions
  
  See Part 31 of the Civil Procedure Rules and Practice Direction 31A.
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- Letter to other side's solicitor requesting to inspect documents
- Evidence
  
  If the applicant wishes to rely on written evidence at the hearing, they must file the evidence and serve a copy on the respondent at least three days before the hearing. If the respondent wishes to rely on written evidence, they must file that evidence and serve copies of it on all the ...
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- Library of evidence documents
  - Proof of evidence
  - Witness statement - Civil matters
  - Example content - Witness statement for civil matters
  - Exhibit sheet to witness statement - Civil matters
  - General form of affidavit
  - Clause - Affidavit for civil matters
  - Exhibit sheet for affidavits - Civil matters
  - Notice of intention to rely on hearsay evidence
  - Notice to admit facts
- Letter to court filing documents
- Letter to court filing written evidence
- Letter to other side's solicitor serving written evidence
- Expert witnesses
  
  Evidence from an expert who has been instructed to give or prepare evidence on any relevant matter in which they are qualified is admissible, notwithstanding the usual rule against opinion evidence being admitted: s 3 of the Civil Evidence Act 1972. See Part 35 of the Civil Procedure ...
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- If required - Expert witnesses
  - Letter to expert requesting report
  - Letter to client enclosing expert's report
  - Letter to court filing expert's report
  - Letter to other side's solicitor serving expert's report
I. Final hearing and costs
- Preparation for the final hearing
  
  Small claims track cases After the case has been allocated to the small claims track and the court has issued the standard or any special directions and held any preliminary hearings under r 27.6, the court will fix a date for trial. The court will give the parties at least 21 days notice ...
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- Letter to counsel enclosing brief
- Brief to counsel - Civil matters
- Letter to client advising of court hearing date
- Letter to court advising client will not attend
- Letter to witness advising hearing date
- Small claims track special directions
- Listing questionnaire (pre-trial checklist)
- Letter to court filing documents
- Court bundles
  
  A court bundle is an indexed collection of documents that the parties will rely on during the hearing. The bundle includes all documents filed in court, leaving out irrelevant documents even if disclosed in the proceedings. Rule 39.5 of the Civil Procedure Rules and paragraph 27 of ...
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- County Court, High Court and Appeal Court - Trial bundle cover page
- County Court, High Court and Appeal Court - Trial bundle index
- Case summary
- Chronology - Civil matters
- Letter to other side's solicitor enclosing index to trial bundle
- Letter to other side's solicitor enclosing trial bundle
- Letter to court filing trial bundle
- Costs for final hearing
  
  Small claims track cases Costs on the small claims track are governed by r 27.14, which provides the following are recoverable:
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- Costs budget (Precedent H) and budget discussion report (Precedent R)
- Precedent T - (budget variation summary sheet)
- Using the automated app – Precedent H – Costs budget
- Using the automated app – Precedent S – Bill of costs
- Final hearing
  
  Preparation for the final hearing
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J. Finalising the matter
- Settled matters
  
  Practitioners are required to advise the court immediately a matter is settled. Until terms of settlement, consent orders, or a notice of discontinuance is filed, the parties must attend before the court if the matter is listed.
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- If required - Discontinuance
  - Notice of discontinuance
  - Letter to court filing documents
- Advising the client
  
  The client should be advised of the outcome in writing and of any element of the judgment that requires them to take action. The client needs to be made aware of any costs consequences associated with not taking the action and breaching the court order. If the client has been successful, an invoice ...
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- Letter to client advising successful outcome and enclosing invoice
- Letter to client advising unsuccessful outcome with advice about appeal and enclosing invoice
- Letter to client finalising the matter
- Example invoice
- Invoice recital - Debt recovery - Acting for the claimant
- Enclosure - Explaining the bill
- Closing the file
- File closing checklist
- File review form - General
Further information
Comments and suggestions for By Lawyers

ALERTS - Nil
Full Commentary - Debt Recovery - Acting for the Defendant
Reference materials
- Electronic Signing and Witnessing
- Looking to the Future
- Article: Alternative dispute resolution
- Article: Costs actually
Overview and limitation periods

Debt recovery is the collection of money from a person or business, due under a commercial contract or arrangement. The same law applies whether the debt due is a small claim or a large claim that may eventually be determined in the High Court. In England and Wales there is a single County Court ...
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Summary of the process

The usual steps in acting for a defendant in a debt recovery matter are:
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A. Getting the matter underway
- File cover sheet - Debt recovery
- To do list - Debt recovery - Acting for the defendant
- First steps
- Retainer instructions - Debt recovery
- Compliance documents
  - Client Due Diligence and Anti-money Laundering Guidance
  - Client Details, Identity Verification and Source of Funds
  - Conflict of interest check
  - Client and matter risk assessment
  - If required - Reporting an issue
    
    Anti-money laundering internal disclosure
- Initial letter to client enclosing Client Care and Terms of Business
- Enclosures for initial letter to client
  - Client care information
  - Terms of business
  - Scope of work - Debt recovery - Acting for the defendant
  - Enclosure - Overview of the litigation process from a defendant's point of view
  - A summary of the dispute resolution process
- Time and costs estimates
- If required - Letter to client varying the Client Care and Terms of Business
  - Letter to client varying the Client Care and Terms of Business
- General deeds, agreements, statements, declarations, consents, and execution clauses
  - Deeds and agreements
  - Deeds
    
    Deed for general use
    
    Deed of assignment of agreement
    
    Deed of assignment of agreement with consent
    
    Deed of assignment of an insurance policy
    
    Deed of assignment of equitable interest in residential land
    
    Deed of gift
    
    Deed of guarantee
    
    Deed of release
    
    Deed of release and grant
    
    General deed of indemnity
    
    Library of standard clauses for deeds
    
    Amendment
    
    Confidentiality
    
    Confidentiality - Extensive
    
    Costs
    
    Counterparts
    
    Dispute resolution
    
    Events beyond control
    
    Governing law and jurisdiction
    
    Interpretation
    
    No assignment
    
    Notices
    
    Severance
    
    Third parties
    
    Waiver
    
    Whole agreement
  - Agreements
    
    Agreement for general use
    
    Boundary agreement
    
    Confidentiality agreement
    
    Construction agreement
    
    Heads of agreement
    
    Library of standard clauses for agreements
    
    Amendment
    
    Confidentiality
    
    Confidentiality - Extensive
    
    Costs
    
    Counterparts
    
    Dispute resolution
    
    Events beyond control
    
    Governing law and jurisdiction
    
    Interpretation
    
    No assignment
    
    Notices
    
    Severance
    
    Third parties
    
    Waiver
    
    Whole agreement
  - Statements and declarations
    
    Statement of truth
    
    Statement of truth - High Court
    
    Statutory declaration
    
    Statutory declaration of solvency
    
    Affidavit - General
    
    Exhibit sheet for affidavits - General
    
    Witness statement - Family matters
    
    Exhibit sheet to witness statement - Family matters
    
    Witness statement - Civil matters
    
    Exhibit sheet to witness statement - Civil matters
  - Execution clauses
    
    Execution clauses - Agreements and contracts
    
    Execution clauses - Deeds
    
    Execution clauses - Overseas companies
  - Consents
    
    If required - Personal data consent - General
    
    Letter to client enclosing consent - General
    
    Letter to third party enclosing consent - General
    
    General letter enclosing client consent
    
    General letter enclosing third party consent
    
    Consent to provide information - General
    
    Consent to provide information - General - Third party
    
    If required - Personal data consent - Health professional
    
    Letter to client enclosing consent - Health professional
    
    Letter to third party enclosing consent - Health professional
    
    Letter to doctor enclosing client consent
    
    Letter to doctor enclosing third party consent
    
    Consent to provide information - Health professional
    
    Consent to provide information - Health professional - Third party
    
    Change of name
    
    Change of name deed for an adult - Concise
    
    Change of name deed for a minor - Concise
    
    If required - Enrolment by an adult
    
    Change of name deed for an adult - For enrolment
    
    Statutory declaration - Enrolment of adult change of name deed
    
    Notice for the London Gazette on the change of name of an adult
    
    Consent to enrolment of change of name of an adult
    
    If required - Enrolment by a minor
    
    Change of name deed for a minor - For enrolment
    
    Statutory declaration - Enrolment of minor change of name deed
    
    Affidavit of best interest for the change of name of a minor
    
    Consent to enrolment of change of name of a minor
B. Preparatory casework and letters before claim
- Initial considerations for debt recovery claims
  
  As going to court can involve the client in significant costs, the first consideration is whether the problem can be solved in another way – perhaps by negotiation or mediation. Consideration should also be given to the debtor’s ability to pay a judgment. If the debtor is unemployed or a struggling ...
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- Response to demand letter before action
- Pre-action protocols
  
  The Civil Procedure Rules specify pre-action protocols as set out in Practice Direction – Pre-Action Conduct and Protocols, including the steps the court expects parties typically to take before commencing proceedings. The objectives of the pre-action conduct and protocols are to:
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- Letter of claim
  
  Under the protocols, every case normally begins with correspondence between the opposing sides to establish the basis of the claim, allowing each side to have enough information to make a decision about where they stand and attempting an early settlement of the matter without recourse to the ...
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- The debtor’s reply
  
  See paragraph 4 of the Pre-Action Protocol for Debt Claims and the Reply Form which is Annex 1 to it. When responding to a Letter of Claim a solicitor may send a letter rather than use the Reply form. However, it must contain the information required by the form.
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- Letter of response to other side's solicitor - Claim admitted
- Letter of response to other side's solicitor - Claim not admitted
- Letter of response to other side's solicitor - Claim part admitted
C. Settling the matter
- Alternative dispute resolution
  
  A court has discretionary power to order parties in court proceedings to engage in alternative dispute resolution (ADR), James Churchill -v- Merthyr Tydfil County Borough Council [2023] EWCA Civ 1416. Mr Churchill claimed against his council for damage caused to his property by Japanese knotweed. ...
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- Letter to the other side’s solicitor suggesting alternative dispute resolution
- Mediation service – Small claims track cases
  
  The Civil Procedure Rules provide for the referral of small claims track cases to the Small Claims Mediation Service, run by HM Courts & Tribunals Service: Practice Direction 51ZE – Small Claims Track Automatic Referral to Mediation Pilot Scheme. As with all forms of ADR, this provides an ...
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- Mediation settlement agreement
- Offers to settle
  
  Opportunities arise to settle disputes, even when the parties’ relationship has soured. Settling the dispute can reduce costs and stress for all parties.
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- Letter to other side's solicitor making without prejudice offer
- Part 36 offers
  
  Part 36 of the Civil Procedure Rules provides for making an offer that will be treated as without prejudice except as to costs. This means that the fact that a Part 36 offer has been made, and the terms of such an offer, must not be communicated to the trial judge until the case has been ...
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- If required - Part 36 offers
  - Letter to client suggesting making a Part 36 offer
  - Enclosure - Part 36 offers
  - Letter to other side's solicitor making Part 36 offer
  - Letter to client enclosing copy Part 36 offer made
  - Letter to client enclosing copy Part 36 offer received
- Settlement agreement
- Letter to client with draft settlement agreement
- Letter to other side's solicitor with settlement agreement
- Letter to court confirming settlement
- General form of judgment or order
- Library of example consent orders
  - Clause - Consent order for judgment notation of agreement
  - Clause - Consent order payment inclusive of costs
  - Clause - Consent order judgment in favour of one party
  - Clause - Consent order for proceedings to be dismissed with no order as to costs
  - Clause - Consent order for acceptance of lesser sum
- Letter to other side's solicitor sending draft consent order
- Letter to court filing draft consent order on settlement
D. Court practice and procedure
- Part 7 claims
  
  The issue of proceedings is governed by Part 7 of the Civil Procedure Rules and Practice Direction 7A, supplemented by Practice Direction 7C, which deals with online claims. Most debt claims are issued in the County Court on paper. However, online proceedings are available in some ...
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- Electronic filing
  
  Courts and tribunals are continually developing ways to commence and manage cases electronically. In the Royal Courts of Justice and Upper Tribunals, the Courts Electronic Filing System (CE-File) allows for the digital issue and management of cases. The system incorporates electronic filing ...
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- Online portals
  
  Damages Claims Portal The Damages Claims Portal is governed by Practice Direction 51ZB and is for legal practitioners to use when making a claim for damages.
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- Issue a claim for damages with MyHMCTS
- Money Claim Online (MCOL)
- Paper proceedings
  
  Multiple claims and claimants Unlike an online claim, r 7.3 of the Civil Procedure Rules permits any number of claims and claimants to be covered by one paper claim form. Multiple claims which can be dealt with in this way are subject to the following criteria:
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- Service
  
  It is usual for the claimant to request that the court serves the claim. The claim will be issued within two working days from the date it is submitted online and the claimant will be posted a notice confirming the issue date. The issue date can also be checked online by accessing Claim Overview.
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- Request by defendant for service of claim form
  
  A delay in the service of the claim form may prompt the defendant to notify the claimant that the order must be served. This may be because, for example, the defendant does not want the uncertainty of wondering if and when the claim will be served. Rule 7.7(1) of the Civil Procedure Rules ...
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- Letter to claimant’s solicitor giving notice regarding service
E. Responding to a claim
- How to respond
  
  The defendant’s options for responding are set out in Part 9 of the Civil Procedure Rules. They can:
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- Letter to court responding to claim
- Response pack
- Defendant admits the claim
  
  The defendant can admit the claim by filing a Form of Admission from the response pack. If the defendant requires time to pay the amount admitted, they will need to complete the parts of the form that require details of their assets, income, and outgoings. They will also need to make an instalment ...
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- Admission (specified amount)
- Defendant admits part of the claim
  
  The defendant who admits only part of a claim will need to file a defence to the part of the claim that is not admitted, preventing judgment being awarded for the whole claim. Once the defence is filed, the matter progresses to the case management phase. The claimant will have the option of ...
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- Defendant disputes the claim
  
  Defence Where the defendant wishes to dispute the claim in whole or in part, they must file a defence within 14 days of service of the particulars of claim or within 28 days if they have first filed an Acknowledgment of Service.
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- Defence form
- Example content - Defence
- If required - Extension of time
  - Extension of time
    
    If the defendant needs more time to respond, consent for an extension is to be sought from the claimant before the time limits expire. Rule 2.11 provides some capacity for parties to agree time limit variations between themselves. Rule 15.5 notes that the parties may agree that the period ...
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  - Application notice
  - Clause - Extension of time
  - Letter to other side's solicitor requesting extension for time to serve
  - Letter to court confirming extension agreed between the parties
- If required - Counterclaims and additional claim
  - Counterclaims and additional claims
    
    Part 20 of the Civil Procedure Rules sets out the requirements for counterclaims by the defendant against the claimant or a third party, and other additional claims such as a defendant seeking contributions or indemnity from a third party. The rule reiterates the overriding principle that ...
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  - Claim form (additional claims - CPR Part 20)
  - Application for third party debt order
  - Application notice
  - Letter to claimant serving additional claim
  - Letter to claimant's solicitor serving additional claim
F. Interim applications
- Security for costs
  
  As part of a response, the defendant may apply to the court for security for costs under r 25.12 of the Civil Procedure Rules. This is an application to require the claimant to pay a sum of money into court to protect the defendant’s ability to claim their costs back if they are ...
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- Clause - Wording for Form N244 Application Notice, box 3 - Security for costs
- Example content - Draft order - Security for costs
- Letter to court filing documents
- Default judgment
  
  Where the defendant has failed to respond to a claim, either at all or within time, a claimant may apply for default judgment pursuant to Part 12 of the Civil Procedure Rules. It is a purely administrative procedure and does not require a court hearing. See Time limits for responding.
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- Setting aside or varying default judgment
  
  Although there is no right of appeal when default judgment has been entered, the parties have the right under Part 13 of the Civil Procedure Rules to apply to vary or set aside the order. The court must set aside the order if it was wrongly entered, for example, if it was entered on the basis ...
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- Application notice
- General form of judgment or order
- Witness statement - Civil matters
- Clause - Draft order - Setting aside default judgment on the basis of a real prospect of defending the claim
- Defence form
- Example content - Defence
- Summary judgment
  
  The court may give summary judgment when it believes that either the claimant has no real prospect of succeeding, the defendant has no real prospect of defending the claim, or there is no other compelling reason why the case or issue should be disposed of at a trial. If so, the court gives judgment ...
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- Letter to client with advice about summary judgment
- Letter to court filing written evidence
- Letter to client after summary judgment success
G. Case management and directions
- Transfer of claims
  
  Usually, claims are dealt with by the court closest to the defendant’s address or the County Court in Central London. Rule 26.2A enables the transfer of money claims in specific circumstances, including where a court officer considers that the claim should be referred to a judge for directions ...
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- Provisional allocation
  
  The parties will receive a notice provisionally allocating the defended claim to one of four tracks. This occurs before the parties file their directions questionnaires. The four tracks are:
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- Directions questionnaires
  
  Directions questionnaires request information to assist the court in confirming the allocation of a case and enable active management of its progress through the court. Rule 26.8 provides that when deciding the track for a claim, the court will consider such matters as the financial value of ...
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- Directions questionnaire (small claims track)
- Directions questionnaire (fast track, intermediate track and multi-track)
- Enclosures for directions questionnaire
  - Disclosure reports
    
    Rule 31.6 requires parties to a multi-track case to serve a Disclosure Report verified by a statement of truth not less than 14 days before the first case management conference. The standard procedure is to do this when returning the Directions Questionnaire. The report is required to ...
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  - Disclosure report
  - Costs budgets
    
    For most multi-track cases r 3.13 requires the filing of a costs budget. Unless the court orders otherwise, the parties must file costs budgets:
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  - Costs budget (Precedent H) and budget discussion report (Precedent R)
  - Precedent T - (budget variation summary sheet)
  - Using the automated app – Precedent H – Costs budget
- Letter to client confirming costs budget
- Letter to claimant's solicitor serving costs budget
- Directions
  
  Directions are given to parties by the court to assist trial preparation. They are intended to:
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- Small claims track standard directions
- Small claims track special directions
- Fast track standard directions
- Multi-track standard directions
- Listing questionnaire
  
  Also known as pre-trial checklists, these apply to both fast, intermediate and multi-track cases when considered appropriate. Effectively a second part of the directions procedure, they seek information from the parties to enable the court to list the case and fill any gaps in getting the case from ...
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- Letter to court filing documents
- Listing questionnaire (pre-trial checklist)
- Application notice
- General form of judgment or order
H. Disclosure and evidence
- Disclosure
  
  Disclosure is the stage in a case at which parties share the information on which they are basing their case, together with anything else that affects the case. In keeping with the overriding objective of the Civil Procedure Rules, this is to enable the case to be dealt with as efficiently as ...
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- Letter to client regarding disclosure
- Procedure for standard disclosure
  
  A point that catches the unwary is that the Civil Procedure Rules only provide a process for standard disclosure. If the court orders non-standard disclosure, the judge must give directions on the procedure the parties are to follow. The procedure for standard disclosure is set out in r 31.10 ...
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- Standard disclosure
- Electronic documents questionnaire (Civil Procedure Rules Practice Direction 31B)
- Disclosure reports and other provisions for multi-track cases
  
  Disclosure reports are referenced above in relation to directions questionnaires: r 31.5(3)–(4) of the Civil Procedure Rules. A disclosure report needs to briefly describe what documents exist that may be relevant to the matter, their location, and the costs involved in disclosing the ...
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- Disclosure report
- Letter to other side's solicitor enclosing disclosure report
- Other disclosure provisions
  
  See Part 31 of the Civil Procedure Rules and Practice Direction 31A.
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- Letter to other side's solicitor requesting to inspect documents
- Evidence
  
  If the applicant wishes to rely on written evidence at the hearing, they must file the evidence and serve a copy on the respondent at least three days before the hearing. If the respondent wishes to rely on written evidence, they must file that evidence and serve copies of it on all the parties at ...
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- Library of evidence documents
  - Proof of evidence
  - Witness statement - Civil matters
  - Example content - Witness statement for civil matters
  - Exhibit sheet to witness statement - Civil matters
  - General form of affidavit
  - Clause - Affidavit for civil matters
  - Exhibit sheet for affidavits - Civil matters
  - Notice of intention to rely on hearsay evidence
  - Notice to admit facts
- Letter to court filing documents
- Letter to court filing written evidence
- Letter to other side's solicitor serving written evidence
- Vulnerable witnesses and parties
  
  The overriding objective of the Civil Procedure Rules is to deal with cases justly and at a proportionate cost, ensuring all parties are on an equal footing and able to participate fully in proceedings. However, a vulnerable party or witness may impede that participation and also diminish the ...
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- Expert witnesses
  
  Evidence from an expert who has been instructed to give or prepare evidence on any relevant matter in which they are qualified is admissible, notwithstanding the usual rule against opinion evidence being admitted: s 3 of the Civil Evidence Act 1972. See Part 35 of the Civil Procedure ...
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- If required - Expert witnesses
  - Letter to expert requesting report
  - Letter to court filing expert's report
  - Letter to other side's solicitor serving expert's report
I. Final hearing and costs
- Preparation for the final hearing
  
  Small claims track cases After the case has been allocated to the small claims track and the court has issued the standard or any special directions and held any preliminary hearings under r 27.6, the court will fix a date for trial. The court will give the parties at least 21 days notice ...
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- Letter to counsel enclosing brief
- Brief to counsel - Civil matters
- Letter to client advising of court hearing date
- Letter to court advising client will not attend
- Letter to witness advising hearing date
- Small claims track standard directions
- Small claims track special directions
- Listing questionnaire (pre-trial checklist)
- Letter to court filing documents
- Court bundles
  
  A court bundle is an indexed collection of documents that the parties will rely on during the hearing. The bundle includes all documents filed in court, leaving out irrelevant documents even if disclosed in the proceedings. Rule 39.5 of the Civil Procedure Rules and paragraph 27 of ...
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- If required - Defendant bundle
  - County Court, High Court and Appeal Court - Trial bundle cover page
  - County Court, High Court and Appeal Court - Trial bundle index
  - Case summary
  - Chronology - Civil matters
  - Letter to other side's solicitor enclosing index to trial bundle
  - Letter to other side's solicitor enclosing trial bundle
  - Letter to court filing trial bundle
- Letter to other side's solicitor responding to draft court bundle index
- Costs for the final hearing
  
  Small claims track cases Costs on the small claims track are governed by r 27.14, which provides the following are recoverable:
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- Costs budget (Precedent H) and budget discussion report (Precedent R)
- Precedent T - (budget variation summary sheet)
- Using the automated app – Precedent H – Costs budget
- Using the automated app – Precedent S – Bill of costs
- Final hearing
  
  Preparation for the final hearing
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J. Finalising the matter
- Settled matters
  
  Practitioners are required to advise the court immediately a matter is settled. Until terms of settlement, consent orders or a notice of discontinuance is filed, the parties must attend before the court if the matter is listed.
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- If required - Discontinuance
  - Letter to court filing documents
  - Notice of discontinuance
- Advising the client
  
  The client should be advised of the outcome in writing and of any element of the judgment that requires them to take action. The client needs to be made aware of any costs consequences associated with not taking the action and breaching the court order. If the client has been successful, an invoice ...
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- Letter to client advising successful outcome and enclosing invoice
- Letter to client advising unsuccessful outcome with advice about appeal and enclosing invoice
- Letter to client finalising the matter
- Example invoice
- Invoice recital - Debt recovery - Acting for the defendant
- Enclosure - Explaining the bill
- Closing the file
- File closing checklist
- File review form - General
Further information
Comments and suggestions for By Lawyers

ALERTS - Nil
Full Commentary - Enforcement
Reference materials
- Electronic Signing and Witnessing
- Looking to the Future
- Article: Costs actually
Overview

Enforcement is the process of enforcing a judgment against a debtor to gain payment. Once a judgment or order has been obtained, it becomes the responsibility of the judgment creditor to recover the debt. In an ideal world, the debtor pays the judgment on request, but this often does not happen, ...
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Summary of the process

The usual steps in acting for a client to enforce a money judgment are:
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A. Getting the matter underway
- File cover sheet - Enforcement
- To do list - Enforcement
- First steps
- Retainer Instructions - Enforcement
- Compliance documents
  - Client Due Diligence and Anti-money Laundering Guidance
  - Client Details, Identity Verification and Source of Funds
  - Conflict of interest check
  - Client and matter risk assessment
  - If required - Reporting an issue
    
    Anti-money laundering internal disclosure
- Initial letter to client enclosing Client Care and Terms of Business
- Enclosures for initial letter to client
  - Client care information
  - Terms of business
  - Scope of work - Enforcement
  - A summary of the enforcement process
- Initial letter to client advising on enforcement
- Time and costs estimates
- If required - Letter to client varying the Client Care and Terms of Business
  - Letter to client varying the Client Care and Terms of Business
- General deeds, agreements, statements, declarations, consents, and execution clauses
  - Deeds and agreements
  - Deeds
    
    Deed for general use
    
    Deed of assignment of agreement
    
    Deed of assignment of agreement with consent
    
    Deed of assignment of an insurance policy
    
    Deed of assignment of equitable interest in residential land
    
    Deed of gift
    
    Deed of guarantee
    
    Deed of release
    
    Deed of release and grant
    
    General deed of indemnity
    
    Library of standard clauses for deeds
    
    Amendment
    
    Confidentiality
    
    Confidentiality - Extensive
    
    Costs
    
    Counterparts
    
    Dispute resolution
    
    Events beyond control
    
    Governing law and jurisdiction
    
    Interpretation
    
    No assignment
    
    Notices
    
    Severance
    
    Third parties
    
    Waiver
    
    Whole agreement
  - Agreements
    
    Agreement for general use
    
    Boundary agreement
    
    Confidentiality agreement
    
    Construction agreement
    
    Heads of agreement
    
    Library of standard clauses for agreements
    
    Amendment
    
    Confidentiality
    
    Confidentiality - Extensive
    
    Costs
    
    Counterparts
    
    Dispute resolution
    
    Events beyond control
    
    Governing law and jurisdiction
    
    Interpretation
    
    No assignment
    
    Notices
    
    Severance
    
    Third parties
    
    Waiver
    
    Whole agreement
  - Statements and declarations
    
    Statement of truth
    
    Statement of truth - High Court
    
    Statutory declaration
    
    Statutory declaration of solvency
    
    Affidavit - General
    
    Exhibit sheet for affidavits - General
    
    Witness statement - Family matters
    
    Exhibit sheet to witness statement - Family matters
    
    Witness statement - Civil matters
    
    Exhibit sheet to witness statement - Civil matters
  - Execution clauses
    
    Execution clauses - Agreements and contracts
    
    Execution clauses - Deeds
    
    Execution clauses - Overseas companies
  - Consents
    
    If required - Personal data consent - General
    
    Letter to client enclosing consent - General
    
    Letter to third party enclosing consent - General
    
    General letter enclosing client consent
    
    General letter enclosing third party consent
    
    Consent to provide information - General
    
    Consent to provide information - General - Third party
    
    If required - Personal data consent - Health professional
    
    Letter to client enclosing consent - Health professional
    
    Letter to third party enclosing consent - Health professional
    
    Letter to doctor enclosing client consent
    
    Letter to doctor enclosing third party consent
    
    Consent to provide information - Health professional
    
    Consent to provide information - Health professional - Third party
    
    Change of name
    
    Change of name deed for an adult - Concise
    
    Change of name deed for a minor - Concise
    
    If required - Enrolment by an adult
    
    Change of name deed for an adult - For enrolment
    
    Statutory declaration - Enrolment of adult change of name deed
    
    Notice for the London Gazette on the change of name of an adult
    
    Consent to enrolment of change of name of an adult
    
    If required - Enrolment by a minor
    
    Change of name deed for a minor - For enrolment
    
    Statutory declaration - Enrolment of minor change of name deed
    
    Affidavit of best interest for the change of name of a minor
    
    Consent to enrolment of change of name of a minor
B. Preliminary matters
- Before enforcing a judgment
  
  Before starting enforcement proceedings, the judgment debtor must have been given an opportunity to pay. The deadline for payment is either within 14 days of the date of the judgment or at a different date specified within the judgment or order: r 40.11 of the Civil Procedure ...
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- Limitation
  
  There is no limitation period on enforcing a judgment. While the limitation period for an action is six years, it was held in Lowsley and Another v Forbes (Trading as LE Design Services) [1998] 3 WLR 501 that enforcement proceedings are not seen as a new action but rather as an execution. This ...
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- Interest on judgment debts
  
  To commence enforcement proceedings, a creditor must know the full amount of the debt, including any accrued interest. Paragraph 6 of Practice Direction 70A states:
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- Letter of demand to judgment debtor
- If Required – Transfer of proceedings
  - Which court to use
    
    There are several factors that may require enforcement proceedings to be transferred to a different court from the court where the judgment was handed down. See the following table for the appropriate court in which to institute proceedings.
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  - Transfer of proceedings
    
    Transfer from one County Court to another Depending on the method of enforcement and the debtor’s location it may be appropriate to transfer enforcement proceedings from the County Court where the judgment was obtained to a County Court hearing centre local to the debtor.
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  - Letter to court requesting transfer from one county court to another for enforcement
  - Combined certificate of judgment and request for writ of control or writ of possession
  - Writ of control
  - Application notice
  - Letter to court requesting certificate of judgment
  - Letter to court filing documents
  - Letter to client confirming transfer of proceedings
- If Required – Debtor acknowledges debt
  - Letter to debtor chasing instalments
  - Letter to debtor thanking for final payment
C. Investigating the judgment debtor
- Investigating the judgment debtor
  
  To identify the most appropriate method of enforcement it is important to understand who the debt is being recovered from. Learning their whereabouts, employment, and the financial position of the debtor is determinative of the most effective means of enforcement. Useful information to gather about ...
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- In office debtor research
- Letter to debtor requesting information in form EX140
- Record of examination
- Request for and result of search in the attachment of earnings index
- If Required – Information hearing
  - Information hearing
    
    If sufficient details of the judgment debtor cannot be obtained, an application for an information hearing can be made. Information hearings require the debtor to attend court for questioning about their income and expenditure. An information hearing is provided for by Part 71 of the Civil ...
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  - Application for order that debtor attend court for questioning
  - Application for order that officer of the debtor company attend for questioning
  - Application notice
  - Application notice (Part 23) in the High Court of Justice Queens Bench Division Administrative Court list
  - Letter to court filing documents
  - Letter to debtor serving order to attend court for questioning
  - Letter to client with completed form EX140
- Comparing enforcement methods
D. Writs and warrants of control
- Writs and warrants of control
  
  Writs and warrants of control empower an enforcement officer to take control of the debtor’s goods and sell them to satisfy the debt. They are dependent on the debtor owning sufficient goods to make it a worthwhile exercise. There would be little point spending time and money on a writ or warrant ...
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- Request for issue of writ of control (rule 83.9(3))
- Writ of control
- Request for warrant of control
- Letter to court filing documents
- Letter to client enclosing copy of writ of control
- Letter to client enclosing copy of warrant of control
- Letter sending writ of control to High Court Enforcement Officer
- Letter to client enclosing execution report
E. Attachment of earnings orders
- Attachment of earnings
  
  An attachment of earnings order requires the debtor’s employer to deduct a portion of the debtor’s salary to be paid to court and then that sum is paid to the creditor. This method of enforcement is provided for by the Attachment of Earnings Act 1971 and Part 89 of the Civil Procedure Rules. ...
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- If Required – Consolidation
  - Application notice
  - Statement of truth
  - Letter to court filing notice of application for a consolidated attachment of earnings order
- Request for attachment of earnings order
- Form for replying to an attachment of earnings application
- Letter to court filing documents
- Letter to client enclosing attachment of earnings order
- Request for reissue of enforcement or an order to obtain information from judgment debtor (not warrant)
F. Third party debt orders
- Third party debt order
  
  Third party debt orders, formerly garnishee orders, can be applied for either in the High Court or County Court and allow the creditor to obtain payment from a third party who owes money to the debtor. Third party debt orders are governed by Part 72 of the Civil Procedure Rules and are ...
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- Application for third party debt order
- Letter to court filing documents
- Letter to third party serving interim third party debt order
- Letter to debtor serving interim third party debt order
- Letter to client enclosing interim third party debt order
- Certificate of service
- Letter to court with certificate of service
- Letter to third party serving final third party debt order
- Letter to debtor serving final third party debt order
- Letter to client enclosing final third party debt order
G. Charging orders
- Charging order
  
  Charging orders secure the judgment debt by creating a charge over the debtor’s beneficial interest in land or other assets. These are provided for by the Charging Orders Act 1979 and Part 73 Civil Procedure Rules and are dependent on the debtor having interest in property with adequate equity ...
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- Application for charging order on land or property
- Application for charging order on securities
- Letter to court filing documents
- Letter to debtor serving interim charging order
- Letter to third party serving order made at court
- Letter to client enclosing interim charging order
- Letter to debtor serving final charging order
- Letter to client enclosing final charging order
- Registration with the Land Registry
  
  The charging order notice application should be registered with HM Land Registry. See paragraph 6.13 of the HM Land Registry Practice Guide 19 and HM Land Registry Practice Guide 76 - Charging Orders, Without registration, a sale of the land to a bona fide purchaser will defeat the ...
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- Application to enter an agreed notice
- Application to enter a unilateral notice
- Application to enter a restriction
- Order for sale of property
  
  Before deciding whether to proceed with an application for an order for sale, several factors should be considered:
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- Claim form (CPR Part 8)
- Order for sale following a charging order
- Application for an official search (not applicable to registered land)
- Letter to debtor serving claim form for order for sale
- Letter to third party serving claim form for order for sale
- Letter to client enclosing directions
- Letter to client enclosing order for sale
- If Required – Chancery Division forms
  - Interim charging order
  - Final charging order
  - Enforcing charging order (single defendant)
  - Enforcing charging order (multiple defendants)
  - Common form of order for sale
  - Order nominating person to execute sale
H. Insolvency
- Statutory demands
  
  A statutory demand is a formal way of demanding payment of a debt. It is a pre-cursor to insolvency proceedings and can be issued against individual debtors, partnerships, and corporate entities. In response to a statutory demand, the debtor has three options. They can:
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- Letter instructing process server
- Letter to debtor serving statutory demand
- Statutory demand under Section 123(1)(a) or 222(1)(a) of the Insolvency Act 1986
- Statutory demand under Section 268(1)(a) of the Insolvency Act 1986. Debt for liquidated sum payable immediately
- Statutory demand under Section 268(2) of the Insolvency Act 1986. Debt payable at future date
- Statutory demand under Section 268(1)(a) of the Insolvency Act 1986. Debt for liquidated sum payable immediately following a judgment or order of the court
- Letter to client confirming the statutory demand was served
- Bankruptcy
  
  The bankruptcy petition should be made to the correct court in accordance with s 10.11 or s 12.5 of The Insolvency (England and Wales) Rules 2016. The petition should be presented in the High Court if the debt is for more than £50,000 and the debtor lived or carried out their main ...
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- Letter to debtor serving bankruptcy petition
- Creditor’s bankruptcy petition on failure to comply with a statutory demand for a liquidated sum payable immediately
- Creditor’s bankruptcy petition where execution or other process on a judgment has been returned in whole or part
- Statement of truth
- Individual voluntary arrangement (IVA)
  
  Rather than entering bankruptcy, an individual can enter an IVA to pay their creditors. It is a formal agreement between a debtor and their creditors to pay their debts over an agreed period, usually five or six years.
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- If Required – Registration of pending action
  - Application for registration of a pending action
- Letter to client enclosing bankruptcy order
- Corporate insolvency
  
  For companies, the following insolvency options are available depending on the severity of the company’s indebtedness and any desires or abilities to rescue it:
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- Company voluntary arrangements (CVAs)
  
  Under a CVA, a company seeks to enter into an agreement with its creditors to repay some or all its debts. The company proposes that each creditor receive an agreed percentage of their debt. To proceed, 75% of the creditors in value must agree to the voluntary arrangement. The 75% can be made up of ...
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- Notice of voluntary arrangement taking effect
- Notice of termination or full implementation of voluntary arrangement
- Notice of order of revocation or suspension of voluntary arrangement
- Administration
  
  Administration is another method by which a company or its directors seek to rescue a business. An administrator is appointed, by a qualifying floating charge holder, the company’s directors, or by an order of the court on application by the company, its directors, or creditors. Administration can ...
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- Administration application
- Liquidation
  
  When a company is unlikely to trade its way out of insolvency or restructure itself in a way to avoid such, liquidation is the most likely option. It brings about the closing of the business, winding up, and the sale of any assets to pay its debts. In most cases, only a small percentage of the ...
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- Letter enclosing creditor's warning notice seeking debtor's proposal for payment of a debt
- Creditor's warning notice seeking debtor's proposal for payment of a debt
- Notice of appointment of liquidator in a winding-up by the court
- Notice of appointment of liquidator voluntary winding up (members or creditors)
- Receivership
  
  A receiver is appointed when a creditor wishes to protect their interests in a particular asset of the company. The powers of a receiver are more limited than those of an administrator or liquidator. The latter are appointed to protect the interests of the company or its creditors, whereas a ...
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- Notice of appointment of an administrative receiver, receiver or manager
- Schemes of arrangement
  
  A scheme of arrangement is a process under which the company arranges or re-arranges its finances. Although this is not necessarily an insolvency process, it is often a path chosen by companies and agreed by shareholders and creditors as a means of avoiding insolvency. Court sanction is needed and ...
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- Winding up
  
  Restrictions on the presentation of winding up petitions during COVID-19 were lifted on 31 March 2022. After that, pre-COVID-19 rules apply. If the debtor company owes £750 and it can be shown that the company cannot pay, a winding up petition can be presented.
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- Winding-up petition
- Letter instructing process server
- Letter to debtor serving winding up petition
- Certificate of service
- Letter to court with certificate of service
- Letter to court filing Gazette notice and certificate of compliance
- Certificate of compliance
- List of appearances (Comp 5)
- Letter to court filing documents
- Letter to client enclosing copy winding up order
- Creditors and getting paid
  
  Following the making of a bankruptcy or winding up order, the assets of the debtor come under the control of the trustee in bankruptcy or liquidator. Creditors will receive funds when the assets are called in, sold, and divided. This can take some time and may not result in the full balance being ...
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- Distributing assets following insolvency
  
  In corporate insolvency, there are rules as to the distribution of assets in the event of a company’s insolvency. See s 107 of the Insolvency Act 1986 and r 4.181 of the Insolvency Rules 1986. What assets the company owns and whether they are subject to a charge needs to be ...
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I. Other enforcement procedures
- Writ of sequestration
  
  A writ of sequestration is where sequestrators take control of the debtor’s property when they are in contempt of court or disobeying a court order. This is only used in serious cases and very rarely to enforce money judgments. Writs of sequestration are made in accordance with Part 81 of the ...
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- Order of committal
  
  Similarly, for debtors in contempt of court, orders for committal threaten prison for failure to comply with court orders. Orders of committal are made in accordance with Part 81 of the Civil Procedure Rules. These are not strictly a method of enforcement, but a sanction for failing to comply ...
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- Example content - Statutory demand for unpaid rent under Section 268(1)(a) of the Insolvency Act 1986
- Statutory demand under Section 268(1)(a) of the Insolvency Act 1986. Debt for liquidated sum payable immediately
- Letter instructing a certified enforcement agent to seize goods under the CRAR procedure
- Notice of intention to seize goods - s 72 of the Tribunals, Courts and Enforcement Act 2007 - Commercial rent arrears
J. Finalising the matter
- Letter to client finalising the matter
- Example invoice
- Invoice recital - Enforcement
- Enclosure - Explaining the bill
- Closing the file
- File closing checklist
- File review form - General
Further information
Comments and suggestions for By Lawyers

Debt Recovery and Enforcement

This publication guides practitioners through debt recovery, including non-court dispute resolution and enforcement orders.

Overview

Precedents in this publication include:

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