Once a creditor obtains Judgment, they have a wide range of options available to them to enforce the payment of the Judgment debt. Such options available to your creditor the day after the Judgment was obtained are:
- Sherriff’s Warrant to seize your property
A sheriff is an officer of the Court who can be sent to your property to seize property owned by the company to the value of the debt. You may have noticed a yellow wheel clamp on a car while you are driving around, this may be the result of a Sherriff enforcing a Judgment debt. The Sheriff is also able to tag plant and equipment in much the same way, which is then towed away and sold at the Sheriff’s auction.
- Garnishee Order
A garnishee Order is frequently used by creditors who have obtained Judgments to “zip” money from a debtors bank accounts. You will not receive any warning of when this is going to take place, you will first become aware when you notice the funds missing from your bank account.
- Bankruptcy or Winding Up (Liquidation)
If you ignore this Judgment, your creditor may choose to commence further legal proceedings by way of issuing you with a Statutory Demand, or a Bankruptcy Notice. These proceeding can be fatal for a company, or at the very least, extremely expensive to defend. Acting immediately will avoid further legal action and costly legal fees.
- Summons to attend Court
If you are issued a summons to attend Court by your creditors solicitors, you must attend. The purpose of this action from your creditor may be to interrogated you in the stand by a barrister about where company funds and assets have gone. All of your responses will be in front of a Magistrate and under oath.