Kiteleys Solicitors

Kiteleys Solicitors. 7 St. Stephen's Court, 15-17 St. Stephen's Road, Bournemouth, Dorset. BH2 6LA. Telephone 01425 278866.
Kiteleys Solicitors is the trading style of Kiteleys Solicitors Limited registered in England and Wales, registered number 03113721. VAT Registration No: 658 8813 79.
This firm is authorised and regulated by the Solicitors Regulation Authority. A list of directors is available for inspection at our registered office.

How to get a Third Party Debt Order

  • Call us now on 01425 278866
    • Kiteleys Canford Cliffs 01202 708634
    • Kiteleys Highcliffe 01425 278866
    • Kiteleys Southampton 02380 909091
    • Kiteleys Wimborne 01202 849242
    • Kiteleys Ferndown 01202 875646
    • Kiteleys West Moors 01202 863933
    • Kiteleys Boscombe 01202 393506

Third Party Debt Orders

 

What is a third party debt order?

A third party debt order is an order by the court to freeze money held by the debtor, e.g. the debtors bank account.

The organization holding the money belonging to debtor becomes the third party in this enforcement method.

 

The order will prevent the debtor accessing their money until the court has ruled whether or not the money owed to you should be paid from this holding.

 

When can a third party debt order not be used

You cannot apply for a third party debt order if the account is in joint names unless all account holders have judgment against them. The account would need to be in the sole name of the debtor if the judgment is for an individual.

 

Another consideration when looking at whether a third party debt order can be made is that of the amount of funds held in the account. If the account is overdrawn on the day of the order no money can be taken from the debtor in this way.

 

When to apply for a third party debt order

An application to apply for a third party debt order can be made at any time once you are in receipt of judgment.

The judge considering your application will not grant the order unless one of the following apply:

  • The debtor has failed to pay one or more of the instalments under the terms of the judgment
  • The debtor has failed to pay the full sum due under the judgment

Careful consideration should be given as to when you make your application. This is because the order will be sent to the third party by the court and will only freeze the money held on account on the day it is received by the third party. The order will not be applicable to any funds deposited into the account after the date on which the court order was received.

 

How to apply for a third party debt order

To apply for a third party debt order you need to complete From N349, “Application for a third party debt order”. This form can be found online at hmctsformfinder.justice.gov.uk.

 

 

If your claim is purely a Part 7 money only claim and was originally issued in the County Court Money Claims Centre (CCMCC) or the County Court Business Centre (CCMBC), your application should be made to the court covering the debtor’s home address.

 

The information needed to complete Form N349 includes the following:

  • Name and address of the debtor
  • Judgment amount, current amount outstanding including costs and interest, if any. If the judgment specified payment in instalments then the amount would include only those instalments which the debtor has failed to pay.
  • Name and address of the third party, this address must be within England and Wales
  • If the third party is a bank the head office address should be used
  • Whether you are aware of anyone else having an interest in the same money, and if you are their details need to be included
  • Whether you have made any previous applications for third party debt orders in respect of the same judgment

 

What the court will do with the application

If the judge is satisfied with the information put in front of him and interim third party debt order will be made. A copy of the interim order will be sent both to you and the third party by first class post. A copy will not be sent to the debtor until 7 days after it has been sent to the third party, this is to allow the third party sufficient time to freeze the money before the debtor is made aware of the order.

 

Within the order the judge will include a hearing date where it will be decided if the money that has been frozen should be paid to you. It is important that you attend the hearing, failure to do so may result in your application being dismissed by the judge.

 

 

What happens when the third party receive the interim order?

If the third party is not a bank, they should within 7 days of being served with the order let both the court and you know if any of the following apply:

  • The third party claims not to owe the debtor any money; or
  • The third party claims to owe the debtor a lesser sum than the amount given on the order

If the third party is a bank or building society, they should within 7 days of receiving the order carry out a search to determine all the accounts held solely by the debtor.

For each account found the bank or building society must notify both you and the court of the following:

  • Account number
  • Whether the account is in credit
  • If the balance is sufficient to cover the amount in the order
  • If the amount is not sufficient then the balance at the time the order was served
  • If they are entitled to retain monies to offset debit balances

 

Can the debtor stop the order?

If the debtor is an individual and the bank or building society is the third party, an application for a hardship payment order can be made.

 

What is a hardship payment order?

The order is made by a judge ordering the third party to release some of the frozen funds as a result of the interim third party debt order. This order will only be made by the judge if the debtor is able to prove that both themselves and their family are unable to meet their day to day living expenses due to funds being frozen.

 

Final order hearing

The judge will consider your application alongside any evidence provided by you, the debtor, or the third party. If the judge decides that a final order should be granted the order will be drawn on Form 85 “Final third party debt order”.

 

If there is sufficient money the final order will determine that the third party will pay you your judgment debt, any costs and your costs of bringing the application. Should the order be for a lesser amount then the judgment the application costs will be satisfied first and part of the judgment debt will remain outstanding.

 

The third party will be informed of the amount they have to pay and by when. If the amount paid is less than you are owed then alternative methods of enforcement may need to be considered.

 

 

 

by

Kiteleys Solicitors. 40 Haven Road, Canford Cliffs, Poole, Dorset. BH13 7LP. Telephone 01425 278866.
Kiteleys Solicitors is the trading style of Kiteleys Solicitors Limited registered in England and Wales, registered number 03113721. VAT Registration No: 658 8813 79.
This firm is authorised and regulated by the Solicitors Regulation Authority. A list of directors is available for inspection at our registered office.