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DEBT COLLECTING – You can’t get blood out of a stone but …

One of the first considerations in the risk analysis of a party intending to pursue a Claim against a debtor is whether or not that debtor has the means to pay the Judgment Debt and the costs of the Claimant if the Claim succeeds. The old adage ‘you can’t get blood out of a stone’ still applies. However, the debtor’s fortunes might improve in years to come and therefore there might still be some merit in pursuing a Claim.

There are time limits on taking Court action to recover debts (usually six years) but not for enforcing a Judgment obtained in proceedings.

The Court’s permission is required before you can issue instructions to the Bailiff or the Enforcement Officer six years after the Judgment was obtained but, in the right case, such permission can be obtained. There is no specific restriction on enforcing a Charging Order, although the Court has the discretion whether or not to make a Charging Order. You should also still be able to apply for a Third Party Debt Order.

If the debtor has not been adjudged bankrupt and his or her fortunes have improved over the years you might be able to recover that Judgment Debt.