Third Party Debt Order HomeThird Party Debt Order

 

Where a debtor is owed money by a Third Party, an application can be made to the court requiring the Third Party to pay you directly.  The most common situation is in respect of bank accounts.  If you know the debtor’s bank account details, we can apply for an order that the proceeds of the debtor’s accounts are paid to you.  Another possibility is where a debtor may be owed money under a contract.

This is another application that is made without the debtor knowing (to prevent monies being moved).  If the court is satisfied with our application, an Interim Order is made which requires the Third Party to inform the court of any monies that it owes to the debtor.  In the case of banks, they must inform the court of all monies owed and not just in respect of the account(s) you have identified.  The Order prevents the Third Party from paying monies owed, effectively freezing the debtor’s account.  The court then sets a date for a hearing at which the debtor can raise objections.  At that hearing the court will either dismiss the Interim Order or make an order that the Third Party is to pay you.

It is important to bear in mind that the Order is only effective on the day the bank receive it.  In other words,if a credit arrives into the account the day after the bank receive the Order, that credit is not caught by the Order and the bank can pay it over to the debtor.

 

Costs

Our fees:
£450 + VAT for applications against a bank/building society.
Fees in other cases will be higher depending on the circumstances – please ask for details (£98.50 recoverable if successful).
£250 + VAT if the application fails due to no funds in the Defendant’s account or the account has been closed.

Court fee:
£110 (recoverable if successful)

 

Timescale

Approximately one week for Interim Order and ten to 12 weeks for Final Order

 

Advantages

Relatively cheap and Interim Order is obtained quickly.
We believe it shows the debtor you mean business.  Imagine the effect of being told by a bank that your account has been frozen without your knowledge!

 

Disadvantages

Can be a lottery as to the amount held in the bank when the order is received.  The debtor is unlikely to have a large sum sitting in its account (however, even if you recover less than the full amount owed, it may provide a fighting fund to pay for an alternative enforcement option).  If cheques have previously bounced then the account may be overdrawn.

 

Click here to see your other options:

Instructing the High Court Enforcement Officer
Order to Obtain Information (Oral Examination)

Attachment of Earnings (available against individuals only)
Charging Orders

Insolvency Proceedings


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