Appendix A

Flow Charts

Overview of Debt Recovery Process Through The Court Chapter I

lnterest On A Claim Chapter 5

Claimant Accepts Defendant's Part 36 Offer within RelevantPeriod

Chapter 7

Part 36--{ffer Defendant Accepts Claimantt Part 36 Otrer withinRelevant Period

Chapter 7

Part 36 Offer-{laimant Equals or Beats Own Part 36 Offer atTiial

Chapter 7

Part 36 Offer-Claimant Fails to Beat Defendants Part 36 Offer at

Tiial

Chapter 7

Part 36 Offer-{laimant Fails to Establish Liability at Tiial-Doesn't Beat Defendant's Part 36 Offer at Trial

CbapterT

Part 36 Offer--Claimant Beats Defendant's Part 36 Olfer butDoesn't Equal or Beat own Part 36 Offer

Chapter 7

Application To Apply For An Order To Obtain Information-CPR 7I

Chapter I I

Application For A Third Party Debt Order-CPR 72 Chapter 12

Application For A Charging Order Against Land-CPR 73 Chapter l3

Process For Execution Again Goods By Way of Warrant of

Execution (CCR Order 26) Or Writ of Fieri Facias (RSC Order 47)Chapter 14

Application For An Attachment Of Eamings Order-CCROrder 27

Chapter l5

Process to Pursue Insolvency Against a Limited Company Chapter l7

Process To Pursue Insolvency Against An Individual Chapter l7

Debt RecoveryProcedures

Organisation @RPC)Full Debt Recovery

Proce$s

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DRPO receives inbound call fromdebtor in Xolo ofcases

A/c moves tonew code formanagement

DRPO achieves no contactthro'rg& l't letter

Tel. no. foundOBC procedure

. DRPOOBCa./cDAYTIME/OUT OF HOURS

Debtor in DSS positionDRPO handles

paperwork

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414 DEBT RECOVERY THROUGH THE COURTS

Include InterestParticulars of

claim dependingon

Demand under anyconttactual provision

(including Late paymentof Comercial Debts

(Interest) Act) Late Payment ofCommercial Debts

(Interest) Act

Statutorys 35A, SCA l98l

(HC) OR s 69,CCA 1984 (cc)

THROUGHTOJUDGMENTAND

BEYOND

JUDGMENTTRANSFERREDTO HIGH COURT

APPENDIX A-FLOW CHARTS

Part 36 Offer - Claimant Accepts Defenilant's -

Part 36 Offer Within Relevant Perioil

415

Within 21 days of serviceof offer, Claimant mustfill written acceptance atcourt and serving coPY

on defendant's solicitors

OUTCOMEWILLBE:

1) Proceedings are staYed2) Defendant paYs moneY

to claimant within 14 days3) Defendant paYs

claimant's costs uP untilacceptance (on thestandard basis to beagreed or otherwiseassessed)

Defendant Responds With An Admission -

Process To Be Followed

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Claimmt considers the informatronput forward by the defendant and

seeks clarifi cation if necessary

Claimantcompletes Fom

N255 andrequests

judgment to beentered forpalment by

instalments orfuture dates asper offer madeby Defendant

Claimmtrequests

judgment to beentered for the

amoutadmitted

Court viill enter judgmentand determine rate and

time of payment

Claimant applies onform N2,14 for aRe-determination

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418 DEBT RECOVERY THROUGH THE COURTS

Part 36 Offer - Claimant Accepts Defendant'sPart 36 Offer after the Relevant Period has Expired

After 21 days of seruiceof offer, claimant

accepts by filing writtenacceptance at court and

serung copy ondefendant's solicitors.

OUTCOME:

1) Proceedings will be stayed.2) Defendant pays money

to claimant within 14 days.3) Defendant pays

claimant's costs up untilthe relevant periodexpired (to be agreed orotherwise assessed).

4) Clairnant pays defendant'scosts from when relevant Peroidexpired to date ofacceptance

5) Such costs to be paid onstandard basis as agreed orotherwise assessed.

APPENDIX A-FLOW CHARTS

Part 36 Offer - Claimant F,quals orBeats Own Part 36 Offer at Trial

4t9

Claimant wins and is awardedthe same as or more than the

mount of his offer

Claimant will receive:

A) The damages awarded bY the court:Bj Interest at the court's discretion on the damages awarded provided claimed in the

particulars ofclaim, normally from when the loss was sustained to and including the

iay before the last date when the Defendant could have accepted Claimants Part 36

Offer, ie the day before the relevant period expired (day 20)

C) Under r 36.14 (3) 'enhanced' interest on the damages awarded at a maximum rate

of l07o pa over base rate from and including the last date when Defendant could

have accepted Claimants Part 36 offer, ie the day the relevant period expired (day 21)

untiljudgment:D) Costs on the standard basis potentially from when frrst incurred by claimant up to

and including the day before the last date for acceptance ofclaimants Part 36 offer,

ie the day before the relevant period expired (day 20)E) Under r i6.t4 (3) costs on the indemnity basis from and including th€ last date for

acceptance ofClaimants Part 36 offer, ie the day the relevant period expired (day 21)

up to judgment:F) Undei r 36.14 (3) interest on those indemnity basis costs at a maximum rate of

l0o/o pa over base rate from when each item was incurred. Note the norm is 4% pa

over base rate(Rowlands v Bryn Alyn Community (Holdings) Ltd {2003})'

420 DEBT RECOVERY THROUGH THE COURTS

Part 36 Offer - Claimant Fails to BeatDefendant's Part 36 Offer at Trial

Claimant wins but isawarded at trial the sameas or less than Defendants

Part 36 offer.

OUTCOME:Claimant will receive:l) The amount awarded by the court:2) Interest at the court's discretion on the

amount claimed in the prticluars of claim:3) Costs on the standard basis potentially

from when first incurred by Claimant up toand including the last date for acceptance ofDefendants Part 36 offer, ie expiry oftherelevant period (day 2l)Claimant will pay Defendant

Under r 36.14(2) Defendants costs on thestandard basis from and including the dayafter the last date for acceptance ofDefendants part 36 offer, ie the day after therelevant period expired (day 22) up tojudgnent, plus interest on the costs incurredduring this time.

APPENDIX A-FLOW CHARTS

Part 36 Offer - Claimant Fails to Establish Liability at

Trial - Doesn't Beat Defendant's Part 36 Offer at Trial

Part 36 Olfer - Claimant Beats Defendant'sPart 36 Offer but Doesn't Equal or Beat own Part 36 Offer

42

Defendant makesPart 36 offer

Claimant does notaccept offer andcase proce€ds to

trial

OUTCOME:

Claimant will not receive any amount ofdebt/cash/interest and will have to PaY:l) Unless it is unjust to do so, Defendant's cost of the proceedings

on the standard basis Plusintefest on the costs incurred after the relevant period expired(day 2l) tojudgnent

2) His own costs (subject to any CFA, see Chapter 4)

Claimant wins and isawarded at trial more than

Defendant's Part 36 Offer butless than his own Part 36 Offer.

OUTCOME:Claimant will receive:1) The amount awarded by the court in satisfaction

of the claim:2) Interest at the court's discretion on the

amount awarded provided claimed in theparticulars of claim:

3) Costs on the standard basis potentiallyfrom when first incumed by the Claimant up tojudgment

Part 36 has no impact - Claimants offer was toohish and Defendants offer too low.

Application To Apply For An Order ToObtain Information - CPR 71

Does the Judgrrent Creditor have information about the JudpentDebtor's Assets

Consider the informationavailable and pursue theappropriate enforcement

action

Pursue m Application foran Order to Obtain

lnformation - CPR 71.2(l)

Complete Fom N316A, for an

Officer of the Company to Attend

and Give Information and send to

court with the appropriate fee

Complete Fom N3l6 andsend to court vrith the

appropriate fee

The Court will prepare the Order with the date and time of the hearing

The Order must be personally serued on the Judpent Debtorno less than 14 days before the hearing date - CPR 71.3

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Once the Order has been served complete Form EX550'

A{fidavit of Seruice. Must be filed at court 2 days before the

hearing or be produced at the hearing - CPR 71.5(1) and (2)

Judgment Debtor attends the heanng

The Court will issue a SusPendedCommittal Order (Form N79A) with a

fresh hearing date - CPR 71.8

The Judgment Debtor will comPleteeither Form EX140 (Judgrnent Debtoris an individual) or Form EXl4l if the

Judp.ent Debtor is a Limited Company

Arrange for personal seruice oftheSusoended Committal Order

Prepare a fresh EX550 and ftle at

court as before

The Court will issue a Committal Orderto be executed by the court bailiff

Judgrnent Debtor completes eitherForm EXl40 or Form EXl4l as appropriate

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Application To Apply For A ThirdParty Debt Order - CPR 72

Claimant knows of a Third Party who owes money to theJudgnent Debtor

Third Party is within the jurisdiction - CPR 72. I

Complete Form N349 giving details ofthe Third Party. Send to the court with

the appropriate fee - CPR 72.3

You cannot proceed with a Third PartyDebt Order Application

Court will consider the application and ifin order they will make an Interim Third

Party Debt Order -CPR72.4

Arrange for service of the Interim Order on tle Judgm.entDebtor and the Third Pady. See the table below for guidance

on service - CPR 72.5

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Judgrnent Debtor may make an Application fol aHardship Paymenr - CPR 7 2.7

Third Party must "freeze" the money and make no payment

to the judgment creditor or the judgnent debtor

Payment can be made for the Judgrnent Debtor'smortgage, rent, food etc. If authorised payment will be

made by the Third Party directly to the appropriatecreditor and not via the Judgment Debtor

At the final hearing the court will:. Make a Final Third Party Debt Order. Discharge the Interim Order. Decide any issues ofdisPute. Direct a trial ofany issuescPR 72.8 (6)

If the Final Third Party Debt Order is made the Third Partymust make payment to the Judgrnent Creditor. This will

discharge their liability to the Judgrnent Debtor - CPR 72.9

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Third Party Debt Order Table For Service - CPR 72.5

Applicatioflfot TPDOis made

InterimTPDOismade by thecourt

Final hearingrs set notless than 28days ahead

Third Party isserved not lessthan 21 daysbefore the finalhearing date

Judgrnent Debtor is served not lessthan 7 days after a copy oftheInterim T?Do has been servedon the Third Party and 7 daysbefore the final hearing

Final hearingtakes placewith all servicereqrnrementshaving been met

l'r June 4d June 46 JulyService onThird Party tobe completedby l4t June

Service on JudgnentDebtor to be completednot earlier than 21" Juneand before 28ri June

Final hearingtrkes placeon 4ft July

Application To Apply For A ChargingOrder Against Land - CPR 73 Obtain Offrce Copy Entries from the Land Registry for the prop€rty in question

Cannot proceed with Charging OrderApplication unless it can be shown that theJudgm.ent Debtor has a beneficial interest in

the propertY

Complete Form N379 Application forCharging Order Against Land, Attach Offrce

Copy Entries and send to court with theappropriate fee - CPR 73.3(l) and (2)

The court will consider the application and ifalrightwill grant an Interim Charging Order and list the

matter for a final hearing - CPR 73.4

Interim Charging Order to be served on theJudpent Debtor and other parties with aa

interest in the property. Service must beaffected at least 21 days before the hearing

date - CPR 73.5

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Judgment Debtor is thesole owner ofthe property

Register the Interim Charging Order at theLand Registry

Prepare Certificate of Service and frle at court before thehearing date, or produce at the hearing - CPR 73.5 (2) Complete Form RXl and

send to Land Registry witha copy ofthe Interim

Charging Order

Complete Form UNI andsend to Land Registry with

a copy ofthe InterimCharging Order

At the hearing the court may make one ofthe following orders:. Make a Final Charging Order. Discharge the Interim Charging Order. Decide any issues in dispute between

the parties. Direct a trial ofany issues and give

dtections

Serve the Final Chareing Order on theJudgmont Debtor and the other parties with

an interest in th€ property

Pursue an Ordet for Sale to Enforce tlrc ChargingOrdgr and recover payment - CPR 73.10

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Process Fdr Execution AgainstGoods By Way of Warrant of

Execution (CCR Order 2Q Or Writof Fleri Facias (RSC Order 47)

Yes

Judgm.ent Debtor has goodsfor removal and sale at auction

Is the judgment above f,600

Issue a Warrant ofExecution in the County

Court

Is the judgment relating toa debt regulated by theConsum€r Credit Act

Prepare Form N323 - Request forWarrant of Execution and send to

the county court with theappropriate fee - CCR Ord 26 r I

Transfer the judgment tothe High Court and issue aWrit of Fieri Facias (FiFa)

The court will issue the WarrantofExecution and will pass it to

the county court bailiffforexecution

If you know the name of the AuthorisedHigh Court Enforcement Offtcer you wishto execute the Writ indicate this in Part 3

of the Form. If not the Writ will beallocated to the next AHCEO on a cab rank basis

Complote Form N293a -Combined Certificate of

Judgment and Request forWrit of Fieri Facias or Writ

ofPossession

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to thr€€ attendances to try andexecutc the Warrant and either

obtain payment in full or seek toremove goods for sale at auction

in satisfaction ofthe debt

EithercompleteForm53_WritofFieriFaciasandsendtothecourtforSealingOR send the sealed Form N293A to one ofthe High Court Enforcement Offtces

who usually offer a free "Transfer up Service" and who will prepre the Writ fol

you and arrange for it to be issued and sealed - RSC Ord 46 r 6

Onc€ the Writ has been issued it willbe passed to the Authorised High

Court Enforcement Officer for action

High Court EnforcernentOffrcer or County Court Bailiff

levy on goods claimed by athird party

The Authorised High CourtEnforcement Offrcer will use their

powers ofdelegation to pass the writto a High Court Enforcement Offtcer

to executeGoods returned tothe Third Party

Third Party's Claimaccepted by the

Judgnaent Creditor

The High Court Enforcement Offtcerwill make up to three attendances to

either obtain paYment in full orremove goods for sale at auction Interpleader proceedings will be

issued in order for the court todecide the true ownershiP ofthe

goods

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For Application ForAn Attachment Of Earnings

Order - CCR Order 27Judgment Debtor is employed

Apply for an Attachment of Earnings Order - CCR Ord 27 You cannot obtain an Attachment of Eaminss Order

Complete Fom N336 to carry out a search of the Attachment of Eamings Index

Search reveals an existing Attachment of Earnings Order

Apply to the court for aConsolidated Attachment of

Earnings Order

Apply for an Attachment ofEarnings Order by

completed Fom N337 andsubmitting to the court

with the appropriate fee -CCR Ord 27 r 4(1)

Court will complete and issue Form N55 (Notice of Application forAttachment ofEarnings Order) to the Judgment Debtor

Ifthe Form N55 is returned undelivered then the court will send theJudpent Creditor Form N216. This advises the Judpent Creditor

that tiey must arrange for service ofthe Form N55 themselves

Judgnent Debtor must complete and return to the court FormN56 providing details of their employment. Form must be

retumed to the court $/ithin 8 days of seroice of the Form N55

Once the Judgment Creditor has successfully arranged forservice of the Form N55 they must complete and file at

court a Form N215 (Certificate ofService)

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iudgnent Debtor completes the Fo.- N56 - 9ir !4]1:5(2

Once the court has the completed Form N56 the court offtcer will either:. Make an Attachment of Earnings Order without a hearing- Fom N60. Make a Suspended Attachm€nt of Eamings Order - Form N64. Send the Order to the Judgment Debtor's employer. Send copies of the Order and Form N56 to both parties

The Court serves a FormN61A (Order for Production of

Statement of Means) on theJudgrnent Debtor

Judgnent Debtor mustcomplete the Form N61A andreturn it to the court within 8days ofreceipt ofthe order or

pay the debt in full

Once the Attachment ofEarnings Order has been made a seroed on

the Judgm.ent Debtor's employer. The employer will make regular

deductions from the Judgment Debtor's salary and pay these to the

Centralised Attachment of Eamings Payment System who will

forward payments to the Judgment Creditor

Judgm€nt Debtor completesand returns Form N56

The Court will serve a Form N63 (Failure to Provide

Statement Means) ordering the Judgrrlent Debtor

to attend court and explain their failure to frle Form

N56 or be sent to prison for 14 days or fined up to

f250 - CCR Ord 27 r 7 A(Z)

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Process To Pursue InsolvencyAgainst a Limited Company

You can either proceed straight to issue a Winding UpPetition, or you can serve a Statutory Demand

Fom 4. I - Statutory Demand under section123(l)(a) or 222(lxa) ofthe insolvency Act 1986

Prepare the Winding Up Petition. Form 4.2 - WindingUp Petition. Must also prepare a Witness Statement

verifying the content of the Petition

When issuing the Winding Up Petition in theHigh Court you must also pay a search fee for

the court to check to see if there are anyexisting Petitions

Send 3 copies ofthe Petition to the court, togetherwith the Witness Statements in Support and th€

appropriate court fee and Offrcial Receiver's Deposit

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Once the Petition is issued and the hearing date listed, the court will return the Petition to you for service upo the Company.

It must be served personallY on:. A director of the company. A duly authorised person of the debtor company. Leaving it at the debtor company's registered office

You must also arrange for the Winding Up Petition to be advertised in the London Gazette. The advert must be placed:. At least 7 days after the service ofthe petition; and. At least 7 days before the hearing ofthe petition

At least 5 days before the hearing ofthe petition you must file a Certficate ofCompliance at court showing:

. The date of the preseotation of the petition; the date hxed for the hearing; the date of service of the petition; and

. The advertising rules have been complied with (a copy of the advert should be filed with the Certificate)

At th€ hearing of the petition the cout will make one of the following orders:. Dismiss the petition. Adjourn the hearing conditionally or unconditionally. Make a compulsory winding uP order. Make any other order it thinks fit

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Process To PursueInsolvency Against An Individual

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Debt is for more than f,750 -complete a Statutory Demand

Fom 6.2 - Statutory Demandunder section 268(lxa) oftheInsolvency Act 1986. Debt for

Liquidated Sum PayableImmediately Following a

Judgment or Order of the Court

Form 6.3 - Statutory Demandunder section 268(2) oftheInsolvency Act 1986. Debt

Payable at Future Date

Form 6.1 - Statutory Demandunder section 268(1)(a) of thelnsolvency Act 1986. Debt for

Liquidated Sum PayableImmediately

Arrange for personal seruice ofthe Statutory Demand on the debtor,

Statement of Setrice, exhibiting aWithin 18 days ofservice ofthe Statutory

Demand the debtor can apply for thedemand to be set aside matter listed for a

hearing for the court to decide if theDemand is valid. Cannot proceed withbankruptcy until the hearing has taken

place and the decision of the court is known 21 days after seruice oftheStatutory Demarnd upon the debtor,

ifpayment has not been received,issue a bankruptcy petition

Form 6.9 - Creditor's Bankruptcy Petitionwhere execution or other process on a

judgurent has been returned in whole or part

Form 6.7 - Creditor's Bankruptcy Petitionon Failue to Comply with a Statutory

Demand for a Liquidated Sum Payable Immediately

a Witness Statement verifying the contents ofthe Bankruptcy Petition

Send the Bankruptcy Petition in triplicate to the court, together with the Statement of

Service ofthe Statutory Demand and the appropriate court fee and Official Receiver's Deposit

court will issue the petition and list the matter for hearing. The petition to you for service upon the debtor.

File the Statement of Service of the Bankruptcy Petition at court Immediately after service of the Petition

Prepare a List of Creditors (if any) who have given notice oftheir intention to either support or oppose the bankuptcy

petition. Must be filed at court before the hearing.

Ifthe debtor intends to oppose the making ofabankruptcy order they must file a notice sprcifying the

grounds for the objection and sewe this on the Creditor ortheir solicitor. Must be filed and served not later than 7

days before the hearingHearing of the petition. The court will make one of thefollowing orders:. Dismiss the petition. Adjourn the hearing conditionally or unconditionally. Make a bankruptcy order. Make any other order it thinks fit

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