AppendixA

Flow Charts

Overview of Debt RecoveryProcessThrough The Court

Chapter I

lnterest On A Claim

Chapter 5

Claimant Accepts Defendant's Part 36 Offer within Relevant

Period

Chapter 7

Part 36--{ffer Defendant Accepts Claimantt Part 36 Otrer within

RelevantPeriod

Chapter 7

Part 36 Offer-{laimant
Tiial

Equals or BeatsOwn Part 36 Offer at

Chapter 7

Part 36 Offer-Claimant Fails to Beat DefendantsPart 36 Offer at

Tiial

Chapter 7

Part 36 Offer-{laimant Fails to EstablishLiability at TiialDoesn't Beat Defendant'sPart 36 Offer at Trial

CbapterT

Part 36 Offer--Claimant BeatsDefendant'sPart 36 Olfer but

Doesn'tEqual or Beatown Part 36 Offer

Chapter 7

Application To Apply For An Order To Obtain InformationCPR 7I

Chapter I I

Application For A Third Party Debt Order-CPR 72

Chapter 12

Application For A Charging Order Against Land-CPR 73

Chapterl3

ProcessFor Execution Again Goods By Way of Warrant of

Execution (CCR Order 26) Or Writ of Fieri Facias(RSC Order 47)

Chapter 14

Application For An Attachment Of Eamings Order-CCR

Order 27

Chapterl5

Processto PursueInsolvency Against a Limited Company

Chapter l7

ProcessTo PursueInsolvency Against An Individual

Chapterl7

Debt Recovery
Procedures
Organisation @RPC)
Full Debt Recovery
Proce$s

5
N)

DRPO receivesinbound call from

debtorin Xoloofcases

DRPO achievesno contact

thro'rg& l't letter

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A/c movesto
new code for
management

-F
Tel. no. found
OBC procedure

Fl

4
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. DRPOOBCa./c
DAYTIME/OUT OF HOURS

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X
Debtor in DSS position
DRPO handles
paperwork

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414

DEBT RECOVERY THROUGH THE COURTS

APPENDIX A-FLOW

CHARTS

Part 36 Offer - Claimant AcceptsDefenilant'sPart 36 Offer Within RelevantPerioil

Include Interest
Particulars of
claim depending
on

Demandunder any
conttactualprovision
(including Late payment
of Comercial Debts
(Interest) Act)

Late Payment of
Commercial Debts
(Interest)Act

Statutory
s 35A, SCA l98l
(HC) OR s 69,
CCA 1984(cc)

Within 21 daysof service

of offer, Claimant must
fill written acceptanceat
court and servingcoPY
on defendant'ssolicitors

THROUGHTO
JUDGMENTAND
BEYOND
OUTCOMEWILLBE:
JUDGMENT
TRANSFERRED
TO HIGH COURT

are staYed
1) Proceedings
2) Defendant paYsmoneY
to claimantwithin 14days
3) Defendant paYs
claimant'scostsuP until
acceptance(on the
standardbasisto be
agreedor otherwise
assessed)

415

Defendant Responds With An Admission Process To Be Followed

tl
m

o
Claimmt considersthe informatron
put forward by the defendant and
seeksclarification if necessary

-l
*

Claimant
completes Fom
N255 and
requests
judgment to be
entered for
palment by
instalments or
future dates as
per offer made
by Defendant

Claimmt
requests
judgment to be
entered for the
amout
admitted

tJ
ts
m

o
a

Court viill enterjudgment

and determine rate and
time of payment

P
!_l

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Claimant applies on
form N2,14for a
Re-determination

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418

DEBT RECOVERY THROUGH THE COURTS

Part 36 Offer - Claimant AcceptsDefendant's
Part 36 Offer after the RelevantPeriod has Expired

APPENDIX A-FLOW

CHARTS

4t9

Part 36 Offer - Claimant F,qualsor

BeatsOwn Part 36 Offer at Trial

After 21 daysof seruice

of offer, claimant
acceptsby filing written
acceptanceat court and
serungcopy on
defendant'ssolicitors.

Claimant wins and is awarded

the sameas or more than the
mount of his offer

OUTCOME:
will be stayed.
1) Proceedings
2) Defendantpaysmoney
to claimantwithin 14days.
3) Defendantpays
claimant'scostsup until
the relevant period
expired (to be agreedor
otherwiseassessed).
4) Clairnantpaysdefendant's
costsfrom when relevantPeroid
expiredto date ofacceptance
5) Suchcoststo be paid on
standardbasisas agreedor
otherwiseassessed.

Claimantwill receive:
A) The damagesawardedbY the court:
Bj Interest at the court's discretion on the damagesawarded provided claimed in the
particularsofclaim, normally from when the losswas sustainedto and includingthe
iay before the last date when the Defendant could have acceptedClaimants Part 36
Offer, ie the day before the relevant period expired (day 20)
C) Under r 36.14(3) 'enhanced'intereston the damagesawardedat a maximum rate
of l07opa over baserate from and includingthe last datewhen Defendantcould
have acceptedClaimants Part 36 offer, ie the day the relevant period expired (day 21)
untiljudgment:
D) Costs on the standard basispotentially from when frrst incurred by claimant up to
ofclaimants Part 36 offer,
and includingthe day beforethe last datefor acceptance
ie the day beforethe relevantperiod expired(day 20)
E) Under r i6.t4 (3) costson the indemnitybasisfrom and includingth last datefor
ofClaimants Part 36 offer, ie the day the relevantperiod expired(day 21)
acceptance
up to judgment:
F) Undei r 36.14(3) intereston thoseindemnitybasiscostsat a maximumrate of
l0o/opa over baserate from wheneachitem wasincurred.Note the norm is 4% pa
over baserate(Rowlandsv Bryn Alyn Community(Holdings)Ltd {2003})'

420

DEBT RECOVERY THROUGH THE COURTS

Part 36 Offer - Claimant Fails to Beat
Defendant'sPart 36 Offer at Trial
Claimant wins but is
awarded at trial the same
as or lessthan Defendants
Part 36 offer.

APPENDIX A-FLOW

CHARTS

Part 36 Offer - Claimant Fails to EstablishLiability at

Trial - Doesn't Beat Defendant'sPart 36 Offer at Trial
Defendant makes
Part 36 offer

Claimantdoesnot
acceptoffer and
caseprocedsto
trial
OUTCOME:
Claimant will receive:
l) The amountawardedby the court:
2) Interest at the court's discretion on the
amount claimed in the prticluars of claim:
3) Costson the standardbasispotentially
from when first incurred by Claimant up to
and including the last date for acceptanceof
DefendantsPart 36 offer, ie expiry ofthe
relevantperiod (day 2l)
Claimant will pay Defendant
Under r 36.14(2)Defendantscostson the
standard basisfrom and including the day
after the last date for acceptanceof
Defendantspart 36 offer, ie the day after the
relevant period expired (day 22) up to
judgnent, plus interest on the costs incurred
during this time.

OUTCOME:
Claimant will not receiveany amount ofdebt/cash/
interest and will have to PaY:
l) Unless it is unjust to do so, Defendant's cost of the proceedings
on the standard basisPlus
intefest on the costs incurred after the relevant period expired
(day 2l) tojudgnent
2) His own costs(subject to any CFA, seeChapter 4)

Part 36 Olfer - Claimant BeatsDefendant's

Part 36 Offer but Doesn't Equal or Beat own Part 36 Offer
Claimant wins and is
awarded at trial more than
Defendant's Part 36 Offer but
lessthan his own Part 36 Offer.

OUTCOME:
Claimant will receive:
1) The amount awardedby the court in satisfaction
of the claim:
2) Interest at the court's discretion on the
amount awarded provided claimed in the
particulars of claim:
3) Costson the standardbasispotentially
from when first incumedby the Claimant up to
judgment
Part 36 hasno impact- Claimantsoffer was too
hish and Defendantsoffer too low.

42

s
Application To Apply For An Order To
Obtain Information - CPR 71

Does the Judgrrent Creditor have information about the Judpent

Debtor'sAssets

NJ

Considerthe information
available and pursue the
appropriate enforcement
action

Pursuem Application for

an Order to Obtain
lnformation - CPR 71.2(l)

r.l
H

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f rl

Fl

ts
Complete Fom N316A, for an
Officer of the Company to Attend
and Give Information and send to
court with the appropriate fee

CompleteFom N3l6 and

sendto court vrith the
appropriate fee

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o
The Court will prepare the Order with the date and time of the hearing

(-'
4
(t)

The Order must be personally seruedon the Judpent Debtor

no lessthan 14daysbeforethe hearingdate- CPR 71.3

Once the Order has been served complete Form EX550'

A{fidavit of Seruice. Must be filed at court 2 days before the
hearing or be produced at the hearing - CPR 71.5(1) and (2)

Judgment Debtor attends the heanng

z
The Judgment Debtor will comPlete
eitherForm EX140 (JudgrnentDebtor
is an individual) or Form EXl4l if the
Judp.ent Debtor is a Limited Company

The Court will issuea SusPended

Committal Order (Form N79A) with a
freshhearingdate- CPR 71.8

X
I

tArrange for personal seruiceofthe

SusoendedCommittal Order

Prepare a fresh EX550 and ftle at

court as before

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JudgrnentDebtor completeseither
Form EXl40 or Form EXl4l as appropriate

The Court will issuea Committal Order

to be executedby the court bailiff

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A
NJ

Application To Apply For A Third

Party Debt Order - CPR 72

Claimant knows of a Third Party who owesmoney to the

Judgnent Debtor

-l
Third Party is within the jurisdiction - CPR 72.I

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FI

Complete Form N349 giving details of

the Third Party. Sendto the court with
the appropriatefee- CPR 72.3

You cannot proceedwith a Third Party

Debt Order Application

Court will consider the application and if

in order they will make an Interim Third
Party Debt Order -CPR72.4

-l

".1

Arrange for serviceof the Interim Order on tle Judgm.ent

Debtor and the Third Pady. Seethe table below for guidance
on service- CPR 72.5

n
v)

Third Party must "freeze" the money and make no payment

to the judgment creditor or the judgnent debtor

Judgrnent Debtor may make an Application fol a

Hardship Paymenr- CPR 72.7

At the final hearing the court will:

. Make a Final Third Party Debt Order
. Discharge the Interim Order
. Decideany issuesofdisPute
. Direct a trial ofany issues
cPR 72.8(6)

Payment can be made for the Judgrnent Debtor's

mortgage, rent, food etc. If authorised payment will be
made by the Third Party directly to the appropriate
creditor and not via the Judgment Debtor

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If the Final Third Party Debt Order is made the Third Party
must make payment to the Judgrnent Creditor. This will
dischargetheir liability to the Judgrnent Debtor - CPR 72.9

o
Third Party Debt Order Table For Service- CPR 72.5
Applicatiofl
fot TPDO
is made

Interim
TPDOis
made by the
court

Final hearing
rs setnot
lessthan 28
daysahead

l'r June

4d June

46 July

Third Party is
servednot less
than 21 days
before the final
hearing date

JudgrnentDebtor is servednot less

than 7 daysafter a copy ofthe
Interim T?Do has been served
on the Third Party and 7 days
before the final hearing

Final hearing
takes place
with all service
reqrnrements
having beenmet

Service on
Third Party to
be completed
by l4t June

Serviceon Judgnent
Debtor to be completed
not earlier than 21" June
and before28ri June

Final hearing
trkes place
on 4ft July

4
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Application To Apply For A Charging

Order Against Land - CPR 73

5
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Obtain Offrce Copy Entries from the Land Registry for the proprty in question

Fl

Complete Form N379 Application for

Charging Order Against Land, Attach Offrce
Copy Entries and sendto court with the
appropriatefee- CPR 73.3(l) and (2)

Cannot proceedwith Charging Order

Application unlessit can be shown that the
Judgm.entDebtor has a beneficial interest in
the propertY

11

The court will consider the application and ifalright

will grant an Interim Charging Order and list the
matter for a final hearing - CPR 73.4

tl

Interim Charging Order to be servedon the

Judpent Debtor and other parties with aa
interest in the property. Servicemust be
affected at least 21 days before the hearing
date- CPR 73.5

ra

Registerthe Interim Charging Order at the

Land Registry

PrepareCertificate of Serviceand frle at court before the

hearingdate,or produceat the hearing- CPR 73.5(2)

At the hearing the court may make one of

the following orders:
. Make a Final Charging Order
. Discharge the Interim Charging Order
. Decide any issuesin dispute between
the parties
. Direct a trial ofany issuesand give
dtections

Servethe Final Chareing Order on the

Judgmont Debtor and the other parties with
an interest in th property

Pursuean Ordet for Saleto Enforce tlrc Charging

Ordgr and recoverpayment- CPR 73.10

Judgment Debtor is the

soleownerofthe property

Complete Form UNI and

sendto Land Registry with
a copy ofthe Interim
Charging Order

Complete Form RXl and

sendto Land Registry with
a copy ofthe Interim
Charging Order

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ProcessFdr Execution Against

GoodsBy Way of Warrant of
Execution(CCR Order 2Q Or Writ
of Fleri Facias(RSC Order 47)
Yes

Judgm.entDebtor has goods

for removal and saleat auction

rl

Is thejudgment abovef,600

o
Issuea Warrant of
Execution in the County
Court

Is the judgment relating to

a debt regulated by the
Consumr Credit Act

bl

PrepareForm N323 - Requestfor

Warrant of Execution and sendto
the county court with the
appropriate fee - CCR Ord 26 r I

Transfer the judgment to

the High Court and issuea
Writ of Fieri Facias (FiFa)

Fl

ComploteForm N293aCombined Certificate of

Judgment and Requestfor
Writ of Fieri Facias or Writ
ofPossession

If you know the name of the Authorised

High Court Enforcement Offtcer you wish
to executethe Writ indicate this in Part 3
of the Form. If not the Writ will be
allocated to the next AHCEO on a cab rank basis

EithercompleteForm53_WritofFieriFaciasandsendtothecourtforSealing
OR sendthe sealedForm N293A to one ofthe High Court Enforcement Offtces
who usually offer a free "Transfer up Service" and who will prepre the Writ fol
you and arrange for it to be issuedand sealed- RSC Ord 46 r 6

The court will issuethe Warrant

ofExecution and will passit to
the county court bailifffor
execution

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to thr attendancesto try and

executcthe Warrant and either
obtain payment in full or seekto
remove goods for saleat auction
in satisfactionofthe debt

\_ a

Onc the Writ has beenissuedit will

be passedto the AuthorisedHigh
Court Enforcement Officer for action

The Authorised High Court

Enforcement Offrcer will use their
powersofdelegationto passthe writ
to a High Court Enforcement Offtcer
to execute

The High Court Enforcement Offtcer

will make up to three attendancesto
either obtain paYmentin full or
remove goods for saleat auction

X
I
E

High Court Enforcernent

Offrcer or County Court Bailiff
levy on goods claimed by a
third party

Third Party's Claim

acceptedby the
JudgnaentCreditor

Interpleader proceedingswill be
issuedin order for the court to
decidethe true ownershiPofthe
goods

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Goods returned to
the Third Party

4
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For Application For

An Attachment Of Earnings
Order - CCR Order 27

Judgment Debtor is employed

Apply for an Attachment of Earnings Order - CCR Ord 27

You cannot obtain an Attachment of Eaminss Order

H
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tl
Complete Fom N336 to carry out a searchof the Attachment of Eamings Index

Searchrevealsan existing Attachment of Earnings Order

Apply for an Attachment of

Earnings Order by
completedFom N337 and
submitting to the court
with the appropriatefeeCCR Ord 27 r 4(1)

Fl

Apply to the court for a

ConsolidatedAttachmentof
EarningsOrder

-l
Court will completeand issueForm N55 (Notice of Application for
AttachmentofEarnings Order) to the JudgmentDebtor

Ifthe Form N55 is returnedundeliveredthen the court will sendthe

Judpent Creditor Form N216. This advisesthe Judpent Creditor
that tiey must arrange for serviceofthe Form N55 themselves

Judgnent Debtor must complete and return to the court Form

N56 providing detailsof their employment.Form must be
retumed to the court $/ithin 8 days of seroiceof the Form N55

Once the Judgment Creditor has successfullyarranged for

serviceof the Form N55 they must complete and file at
court a Form N215 (CertificateofService)

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CA

theFo.- N56- 9ir !4]1:5(2

iudgnentDebtorcompletes

The Court servesa Form

N61A (Orderfor Productionof
Statementof Means) on the
JudgrnentDebtor

Once the court has the completed Form N56 the court offtcer will either:
. Make an Attachment of Earnings Order without a hearing- Fom N60
. Make a SuspendedAttachmnt of Eamings Order - Form N64
. Sendthe Order to the Judgment Debtor's employer
. Sendcopiesof the Order and Form N56 to both parties

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X

Judgnent Debtor must

completethe Form N61A and
return it to the court within 8
daysofreceipt ofthe order or
pay the debt in full

Judgmnt Debtor completes

and returnsForm N56

The Court will servea Form N63 (Failureto Provide

StatementMeans) ordering the JudgrrlentDebtor
to attend court and explain their failure to frle Form
N56 or be sentto prison for 14daysor fined up to
f250 - CCR Ord 27 r 7A(Z)

Once the Attachment ofEarnings Order has beenmade a seroedon

the Judgm.entDebtor's employer. The employer will make regular
deductions from the Judgment Debtor's salary and pay theseto the
CentralisedAttachment of Eamings Payment Systemwho will
forward paymentsto the Judgment Creditor

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5
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ProcessTo PursueInsolvency
Against a Limited Company

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You can either proceedstraight to issuea Winding Up

Petition,or you can servea StatutoryDemand
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Fom 4.I - StatutoryDemandunder section

123(l)(a)or 222(lxa) ofthe insolvencyAct 1986

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Preparethe Winding Up Petition.Form 4.2 - Winding
Up Petition. Must also prepare a Witness Statement
verifying the content of the Petition

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When issuing the Winding Up Petition in the
High Court you must also pay a searchfee for
the court to check to seeif there are any
existingPetitions

Send3 copiesofthe Petitionto the court, together

with the Witness Statementsin Support and th
appropriate court fee and Offrcial Receiver'sDeposit

Once the Petition is issuedand the hearing date listed, the court will return the Petition to you for serviceupo the Company.
It must be servedpersonallYon:
. A director of the company
. A duly authorised person of the debtor company
. Leaving it at the debtor company's registeredoffice

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You must also arrange for the Winding Up Petition to be advertisedin the London Gazette.The advert must be placed:
. At least7 daysafter the serviceofthe petition; and
. At least7 daysbeforethe hearingofthe petition

X
I

tAt least 5 days before the hearing ofthe petition you must file a Certficate ofCompliance at court showing:
. The date of the preseotation of the petition; the date hxed for the hearing; the date of service of the petition; and
. The advertising rules have been complied with (a copy of the advert should be filed with the Certificate)

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At th hearing of the petition the cout will make one of the following orders:
. Dismissthe petition
. Adjourn the hearing conditionally or unconditionally
. Make a compulsory winding uP order
. Make any other order it thinks fit

(JJ

ProcessTo Pursue
InsolvencyAgainst An Individual
Debt is for more than f,750 complete a Statutory Demand

FI
tr l

Fom 6.2- StatutoryDemand

under section268(lxa) ofthe
InsolvencyAct 1986.Debt for
Liquidated Sum Payable
Immediately Following a
Judgment or Order of the Court

Form 6.1- StatutoryDemand

under section268(1)(a)of the
lnsolvencyAct 1986.Debt for
Liquidated Sum Payable
Immediately

-l
Form 6.3- StatutoryDemand
under section268(2)ofthe
InsolvencyAct 1986.Debt
Payableat Future Date

Arrange for personal seruiceof

the Statutory Demand on the debtor,

Within 18daysofserviceofthe Statutory

Demand the debtor can apply for the
demand to be set aside matter listed for a
hearing for the court to decideif the
Demand is valid. Cannot proceedwith
bankruptcy until the hearing has taken
place and the decision of the court is known

Statement of Setrice, exhibiting

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21 daysafter seruiceofthe
Statutory Demarndupon the debtor,
ifpayment has not beenreceived,
issuea bankruptcy petition

t-1

Form 6.9- Creditor'sBankruptcyPetition

where execution or other processon a
judgurent has beenreturned in whole or part

Form 6.7- Creditor'sBankruptcyPetition

on Failue to Comply with a Statutory
Demand for a Liquidated Sum PayableImmediately

a Witness Statementverifying the contents ofthe Bankruptcy Petition

Sendthe Bankruptcy Petition in triplicate to the court, together with the Statementof
Serviceofthe Statutory Demand and the appropriate court fee and Official Receiver'sDeposit
court will issuethe petition and list the matter for hearing. The petition

to you for serviceupon the debtor.

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File the Statementof Serviceof the Bankruptcy Petition at court Immediately after serviceof the Petition

{
Ifthe debtor intendsto opposethe making ofa
bankruptcy order they must file a notice sprcifying the
grounds for the objection and sewe this on the Creditor or
their solicitor.Must be filed and servednot later than 7
days before the hearing

Preparea List of Creditors (if any) who have given notice of

their intention to either support or opposethe bankuptcy
petition. Must be filed at court before the hearing.

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(t)
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Hearing of the petition. The court will make one of the

following orders:
. Dismissthe petition
. Adjourn the hearing conditionally or unconditionally
. Make a bankruptcy order
. Make any other order it thinks fit
A
(JJ