What will happen if I don’t pay?
Where no payment is made our legal team will assess the specific case details and the matter will be considered with our legal department and our client to consider what further action is appropriate.
Proceedings may then follow in the County/Sheriff Court for a claim for damages. If a matter proceeds in the County/Sheriff Court successfully, a County/Sheriff Court Judgment will be ordered against you which will remain on public record for 6 years (5 in Scotland). This will affect your credit rating and your ability to obtain credit.
Where Judgment is obtained against you, it will be for the principle sum together with Court fees, Solicitors costs and interest at the rate of 8% per annum which accrues on a daily basis.
For a claim over £5,000 the legal costs can be significant and interest will continue to accrue post judgment.
Once Judgment is entered, if payment is still not made, there are a number of enforcement options open to our clients:
For claims below £5,000 a County Court Bailiff may be appointed. A bailiff will attend a Defendant’s premises and levy upon goods to the value of the damages, his costs and the sale and administration costs. Once a bailiff has levied goods, he has the power of entry to return to remove the goods for sale, should payment not be made.
For a claim above £5,000, a High Court Sheriff may be instructed to levy upon a Defendant’s goods. The Sheriff’s fees are again added to the damages. Further, for a claim in excess of £5,000, interest continues to accrue on the outstanding sum, at the Statutory rate of 8% per annum.
If a Defendant owns a property, or an interest in property or land, it is possible to apply for a Charging Order. This is a Charge on a Defendant’s property. A Defendant may not subsequently dispose of the property, without the charge being satisfied. The Land Registry register the Charge and a Claimant is notified where a transaction is proposed. The principle sum continues to accrue interest whilst the Charge remains unsatisfied.
Once a Charging Order has been obtained, it is possible to apply to the Court for an Order for Sale of the Defendant’s property. The Court will consider the size of the debt, the equity in the property, the defendant’s circumstances, any interest by a joint owner and decide whether to make an Order for Sale. If a sale is ordered, the property will be marketed and upon sale, the Charge satisfied.
A Claimant may opt to ask the Court for an Attachment of Earnings Order. This is a means for damages to be deducted directly from a Defendant’s income. Any additional costs of the application are added to the damages.
A Claimant may apply for a Third Party Debt Order. If a Claimant is aware of a sum of money held in a bank account, or any funds which are due to be paid to a Defendant, the Court may order that those funds be paid directly to the Claimant.
For a sum in excess of £750 (or £1,500 in Scotland) it is possible to serve a Statutory Demand upon a Defendant. If no payment is made within 21 days, and no response is made to the Statutory Demand with any legal basis to resist the claim, a Bankruptcy Petition may follow. Where a Defendant has ignored a Statutory Demand, it will be difficult for him to resist bankruptcy proceedings. All additional costs of the bankruptcy are added to the defendant’s liability.