Short answer: the court will not enforce a judgment unless you ask. Against a limited company, the main options are a warrant or writ of control over goods, a third-party debt order against its bank account, a charging order over property it owns, an order for a company officer to answer questions about its finances, and, for an undisputed debt of £750 or more, a winding-up petition. Choose based on what the company actually owns.
Getting a county court judgment against a company that owes you money is a milestone, but it is not the finish line. Some companies pay as soon as judgment is entered. Others carry on ignoring you. This guide explains the enforcement options available in England and Wales, how to pick the right one, and when it makes sense to stop spending money on a debt.
Debt Collection UK is a trading name of PASECOM GROUP LTD, an introducer. Independent partner agencies collect; we do not. We are not solicitors, we are not enforcement agents, and we are not authorised by the FCA. We accept debts owed by limited companies, LLPs and PLCs only.
Why do some companies ignore a CCJ?
A limited company is a separate legal person. Its directors are not usually personally liable for its debts, so a judgment against the company does not touch their own assets unless they gave a personal guarantee. Some directors therefore treat a judgment as a problem they can postpone. Others simply have no money in the company. Knowing which situation you face is the most important step in choosing enforcement.
How do you find out what the company owns?
Start with public information. On Companies House, the latest accounts give a picture of assets and liabilities, and the charges register shows whether a lender holds security. HM Land Registry records will show whether the company owns property.
If you need more, you can apply for an order to obtain information. An officer of the company, usually a director, is ordered to attend court and answer questions on oath about the company’s assets, bank accounts and debts. It is a useful step before choosing a method, and failing to attend has consequences for the officer. Details are on GOV.UK’s enforcement guidance.
What is a warrant or writ of control?
A warrant of control is issued by the county court and carried out by county court enforcement officers. They can visit the company’s premises and take control of goods to be sold towards the debt, under the rules in Part 3 of the Tribunals, Courts and Enforcement Act 2007.
For judgments of £600 or more, you can instead ask for the judgment to be transferred to the High Court for enforcement by a writ of control. Judgments of £5,000 or more (other than those under regulated consumer credit agreements) must be enforced in the High Court if you want to take control of goods. A writ of control is executed by an enforcement officer authorised by the High Court, not by a collection agency, and not by us.
Taking control of goods works best when the company has valuable, unencumbered goods at a known trading address. The registered office may be an accountant’s office with nothing to take.
What is a third-party debt order?
A third-party debt order freezes money held for the company by someone else, most commonly its bank, and then orders that money to be paid to you. You need to know where the company banks; your own payment records may show this. It is quick when it works, but if the account is empty on the day the interim order is served, it catches nothing.
What is a charging order?
If the company owns land or buildings, a charging order secures the judgment debt against that property. It does not produce cash immediately, but it means you are likely to be paid if the property is sold or refinanced, and in some cases you can apply for an order for sale. It is slower, but it can protect a large debt.
Can you use an attachment of earnings order against a company?
No. Attachment of earnings takes money from an individual’s wages, so it is not available against a company.
When should you consider a winding-up petition?
Under section 123 of the Insolvency Act 1986, a company is treated as unable to pay its debts if, among other things, it fails to pay an undisputed debt of £750 or more within 21 days of a statutory demand, or if enforcement of a judgment is returned unsatisfied. A creditor can then petition the court to wind the company up.
A petition is a serious step. It has a court fee and a deposit, it is advertised, and it can lead to the company’s bank account being frozen. If the company is wound up, a liquidator takes control and you become one of many unsecured creditors, so you may get little or nothing. A petition is not a debt collection tool for disputed debts; the company can ask the court to stop it, and you could be ordered to pay costs. See GOV.UK on winding up a company that owes you money, and our guide to statutory demands.
How do you choose the right method?
- Trading company with goods on site: warrant or writ of control.
- Company you know banks with a particular bank and receives regular payments: third-party debt order.
- Company owning property: charging order.
- You do not know what it owns: order to obtain information first.
- Clearly solvent company refusing an undisputed debt of £750 or more: consider a statutory demand or petition with advice.
- Company that appears insolvent: check The Gazette and think carefully before spending more.
What can you add to the judgment debt?
Court fees for enforcement applications can normally be added to the debt. Judgment interest may also run on some judgments. Before judgment, on a qualifying commercial debt, the Late Payment of Commercial Debts (Interest) Act 1998 allows interest at 8% above the Bank of England base rate, plus fixed compensation and reasonable recovery costs under section 5A, so include those in your claim from the start.
How can a partner agency help with a judgment?
A partner agency can contact a company that has ignored a judgment and negotiate payment or a plan, often before you spend more on enforcement fees. If enforcement is the better route, the partner can explain the options and costs, and work with solicitors or enforcement professionals where needed. Any court or enforcement fees are separate from the agency’s commission, and nothing is filed without your instruction.
Frequently asked questions
Does the court enforce the judgment automatically?
No. You must apply for enforcement and pay the relevant fee.
Can I enforce against a director personally?
Not on a judgment against the company, unless the director is separately liable, for example under a personal guarantee.
What if the company has been dissolved?
A dissolved company cannot be enforced against. In some cases it can be restored to the register, but take advice first.
Is a winding-up petition a quick way to get paid?
It can prompt a solvent company to pay, but it is costly and risky. It should only be used on a clearly undisputed debt, with advice.
Want a partner agency to look at it?
If the debtor is a limited company, LLP or PLC, you can upload the invoice, with any judgment, using the form below. We introduce it to an independent partner agency. The fixed fee is 15% of what is recovered, only when you are paid. Recovery is not guaranteed.