Difficulties in recovering a debt not only arise in obtaining a judgment but more often, in enforcing the judgment and recovery of the debt.
There are a number of enforcement options available, depending on whether the debtor is an individual or a company and the size of the debt. Some of these options are outlined below.
- Warrant to Seizure Property: this enables the Sheriff to seize the personal property of a debtor, although there are restrictions on which goods are able to be seized by the Sheriff.
- Summons for Oral Examination: this allows the court to order the debtor to attend their nearest Magistrates Court and report to the court as to their financial situation. This enables the creditor to gain an understanding of the debtor’s financial circumstances. If a debtor does not attend a Summons for Examination listed the court may issue a warrant to arrest the debtor.
- Attachment of Earnings: this enables the court to make an order whereby the debt will be paid by installments directly from the debtor’s employer.
- Instalment Order: the court orders that the debtor must pay the debt in installments. The debtor is also able to apply for an installment order which will stop all other enforcement proceedings against them. A default on an installment order can result in a further summons to the debtor to attend the court or imprisonment of the debtor.
- Warrant of Seizure and Sale: this enables the sheriff to sell all of the equity in any real property in the debtor’s name.
- Bankruptcy: this is the final option in the recovery of a debt. If all other enforcement actions are unsuccessful then a creditor may apply for a creditor’s petition to bankrupt the debtor. If a debtor becomes bankrupt the rights of an unsecured creditor are limited.
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