Paying Your Judgement Debt
What if you do not have the money to pay a judgement debt which has been ordered by the court
. This is not unusual in these difficult times but will you be given time to pay?
A court has the power when giving judgement to order payment by instalments or at some later date. The Civil Procedure Rules provides (CPR 40.11) that:
A party must comply with a judgment or order for the payment of an amount of money, including costs, within 14 days of the date of the judgment or order unless the judgment or order specifies a different date for compliance, including specific payment by instalments.
This would seem simple and straightforward enough and give the judge an absolute discretion to set a time scale which would allow the losing party to pay by instalments and thereby avoid bankruptcy or a winding up order. Unfortunately however it is not the end of the story as a recent case has shown.
In the case of 'Amsalem' the judge held that the courts discretion when making orders concerning the payment of judgement debts must be exercised in accordance with CPR 70. The enforcement of judgements is dealt with in this section of the Civil Procedure Rules. The particular rule states that it is not for the court to enforce judgements or decide how enforcement is to take place. That is a matter for the judgement creditor who is entitled to use any of the enforcement methods available or insolvency proceedings.
It was held by the judge that the intention of the law was clear and that it was the entitlement of the judgement creditor to enforce the judgement. It would not therefore be right in any other than most unusual circumstances for the court, having given judgement, to exercise its discretion to allow time to pay where there was no realistic prospect of payment being made even if an instalment order was made..
It became clear that the defendant could not possibly pay the judgement even if payment was to be by instalments. If there is no realistic prospect that the money can be paid the judge is not able to exercise a discretion to allow time to pay. It is only where it is shown that there is a realistic prospect of payment that the discretion to allow time to pay will be exercised.11, would be exercised. What is also clear is that the court will always balance the right of a judgement creditor to be paid as soon as possible against the interests of the judgement debtor not to be placed in an insolvency position.
So if you are in the unfortunate position of having to pay a judgement debt without having the money to do so, you are going to have to make realistic offers of payment and show that if the payment is to be by instalments; you will be able to pay the whole amount within a reasonable time.
by: Andrew John
Corolla Lease Recipients Will Be Able To Purchase From An American Plant By 2011 Calculating At What Time To Press The Panic Button About Your Debts Hints To Obtain Debt Help Grants Do You Have Bad Debt? Ways To Purchase Different Light Fixtures For Any Kind Of Office How To Discover A Useful Expert To Help When Debt Is A Problem Christian Debt Counseling Debtors Have Protection In Certain States Purchase And Wear Trainers With Stress From Where Should You Purchase Galvin Green Clothing? Say Goodbye To Your Debt And Hello To Financial Freedom Advantages When You Purchase Books In Bulk What's Debt Settlement And How It Can Assist You Actually Escape Of Debt