Let us take a closer look at four aspects of enforcement:

• Can you use more than one enforcement method concurrently?
• Can you recover interest on judgment debt?
• How can you find out more information about the debtor?
• Can you use CRAR to recover rent arrears from subtenants?

Can you use more than one enforcement method concurrently?

There are a number of different ways of recovering a debt once you have a CCJ:

• Enforcement, either under a writ of control by a High Court Enforcement Officer (HCEO) or under a warrant of control by a County Court Bailiff (CCB)
• Third party debt order – this authorises the payment of the judgment debt directly to the creditor, provided the money is available at the precise moment that the order is enforced

Where the debtor is a company, you additionally have the options of a winding up petition, but the creditor must be owed £750 or more and be able to prove that the company cannot pay.

Where the debtor is an individual, you have the additional options of:

• Bankruptcy – the debt (or several debts together) must total a minimum of £5,000
• Attachment of earnings order – so that payments are taken from their earnings (provided they remain in employment)
• Charging order – this means the sum owed (plus interest and costs) will be paid when the debtor’s fully or partly owned property is sold

You can issue a winding up or bankruptcy petition without needing to obtain a CCJ – in most cases the purpose will be to encourage payment to prevent you from going ahead.

You can obtain a charging order and continue with other enforcement action – should you recover the debt before the property is sold, the charge will be removed from the property.

Using an AEO may preclude other forms of enforcement such as a writ of control, warrant of control, third party debt order or charging order. HMRC’s guidelines are that other forms of enforcement should be tried first, before applying for an AEO.

Can you recover interest on judgment debt?

Yes, you can recover statutory interest.

The statutory rate for judgment interest is currently 8% per annum. If you have an interest rate stipulated in your contract with the debtor, the Court will rule whether the contract rate or statutory rate will apply.

Which judgments qualify

Interest can be applied to all High Court Judgments (HCJ) and to County Court Judgments (CCJ) of £5,000 and above.

CCJs of £600 and above may be transferred up to the High Court for enforcement by a High Court Enforcement Officer (HCEO). Once the CCJ has been transferred, it is treated in the same way as an HCJ in terms of interest, i.e. judgment interest can be claimed.

CCJs below £5,000 that are not transferred up will not normally be eligible for judgment interest, unless provision has been made for this in the contract between the debtor and creditor.

When interest is applied from and to

With an HCJ and a CCJ for £5,000 and above, interest starts to accrue from the date the judgment or order is handed down - not the later date when it is drawn up and sealed.

With a CCJ transferred up to the High Court for enforcement, interest starts to accrue from the date of the certificate of transfer issued by the County Court.

In either case, interest will continue to accrue until the debt is completely paid.

Payment by instalments

If an order to pay by instalments is made by the court, there is no interest payable unless an instalment is overdue (County Courts Order 1991).

However, most arrangements to pay by instalments are agreed outside court between the debtor and creditor. In these circumstances, statutory interest continues to accrue until the debt is paid in full.

How can you find our more information about the debtor?

There are many sources for the creditor to find out information about the debtor, before applying for a judgment. These include:

• Land Charges Register – bankruptcy petitions and orders
• Individual Insolvency Register – does not include petitions
• Central Registry of Administration and Winding Up Petitions at the Companies Court
• Register of Judgments, Fines and Orders, run by Registry Trust
• The district court (where the debtor lives) holds a register of attachment of earnings orders. You must have a judgment against the debtor to be able to search this
• Companies House for accounts, annual returns, details of company officers and any charges
• Credit reference agencies

If you have already got a judgment, you can also apply to court under CPR Part 71 to make an order for information, where the debtor will be questioned by a court officer, less commonly by a judge. This may take place during a hearing, but not always. You apply using form N316 if the debtor is an individual or N316A if they are an officer of a company.

Can you use CRAR to recover rent arrears from subtenants?

In short, yes you can, provided CRAR is already exercisable against your immediate tenant and all the conditions for using CRAR are met. Download our Guide to CRAR and Forfeiture to find out more.

The right to recover rent from a subtenant under CRAR is covered in sections 81 and 84 of the Tribunals Courts and Enforcement Act 2007 and the Taking Control of Goods Regulations 2013.

You serve a 14-day Section 81 notice on the sub-tenant, informing them that they must pay their rent directly to you, rather than to their immediate landlord. If they default on rent payments, then you can exercise CRAR against them as if they were your immediate tenant.