Did you know that judgments do not 'run out'?
I recently enforced a Judgment that was 8 years old on behalf of a client and I thought you may find the following helpful.
I have come across a lot of debtors, and creditors for that matter, who think that if a Judgment has not been paid within 6 years that is the end of the road. This is not the case.
Judgments in both the County Court and High Court do not ‘run out’ and remain payable until the debt has been paid.
Often debt purchase companies will buy old Judgments because at the time Judgment was obtained the debtor did not have any assets or means to settle the debt. However, 10 years on a debtor’s circumstances can have changed for the better and they may now be a home owner or in a good job or business is booming.
Certain enforcement actions, such as instructing a High Court Enforcement Officer in the High Court (similar to a Bailiff), will need permission of the Court to enforce a Judgment over 6 years old and an explanation will need to be given as to why there has been a delay in taking action. The fact that the debtor’s circumstances have now changed, and we have evidence to show this, is usually a valid reason for allowing a Claimant to ‘reactivate’ a claim.
Interest is payable on Judgment debts under the Judgments Act 1838 at the current rate of 8% per annum for a period of six years from the date Judgment was entered. On a £5000 debt therefore, interest over 6 years would amount to £2387.10 which is not to be sniffed at!
If you have any old Judgments where you were not able to recover the monies due to you, and you think the debtor’s circumstances may have improved, I will be happy to review any claims free of charge and at no obligation. All I need is a copy of the Judgment and details of how the debtor and how their circumstances have improved.
So dig out those old Judgments – what have you got to lose?!
The oldest Judgment I have chased was entered in 1979! It is fair to say that pursuing such an old Judgment does have its problems not least that the debtor had, probably genuinely, completely forgotten about the Judgment. Once reminded that he was still liable to pay the Judgment debt, he was of the mind-set that the only way I would get any money out of him was over his dead body.
Luckily such drastic measures were not needed and having vigorously opposed my application for a Charging Order (where the debt is registered against the debtor’s property) when a Charging Order was obtained he paid the debt in full.
I have been practising in the debt recovery sector for over 30 years and joined Verisona Law in May 2012. We set up the debt recovery team the following February.
I have extensive experience of dealing with and advising on commercial and consumer matters from pre-legal action and the issuing of proceedings through to enforcement of Judgments, bankruptcy and winding up.
The debt recovery team acts for businesses across all sectors including manufacturing, service providers and construction, as well as for individuals.
Fellow of the Chartered Institute of Legal Executives
Jackie has previously acted for national and international clients in a wide range of sectors including IT, vehicle finance, insurance and debt purchase.
Jackie was awarded Credit Today Litigation Specialist of the Year 2003
- Commercial and consumer claims from the issue of proceedings to Judgment
- Enforcement of Judgments by Writ of Fi Fa, Orders to attend Court for questioning, Attachment of Earnings, Third Party Debt Orders, Charging Orders and Orders for sale
- Bankruptcy and winding up proceedings
- Debt purchase
- Independent schools
- SME businesses
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