Adam Wonnacott gave a presentation on effective enforcement methods, comparing High Court Enforcement to alternative methods such as statutory demands and insolvency procedures. High Court Enforcement involves enforcing court judgments through High Court Enforcement Officers who can seize and sell a debtor's goods. It works well when the debtor has assets but may not be suitable if the debt is disputed. Alternative methods include statutory demands, charging orders, and starting insolvency proceedings, with the most appropriate method depending on the specific circumstances of the case and debtor. Wonnacott advised working closely with Enforcement Officers and establishing expectations around payment arrangements, reporting, and key contacts.

1. Adam Wonnacott
Sales Director, Burlington Group
ICM Law Conference 2013: The Law Society, London
www.burlingtongroup.co.uk
Effective Enforcement, Responsibly Delivered
“High Court Enforcement v Alternative methods of
enforcement & insolvency”

2. Scope of this seminar
(Brief) introduction to High Court Enforcement
Alternative methods of enforcement and using
insolvency procedures
Comparison/application of methods
Working with High Court Enforcement Officers

3. What is High Court Enforcement?
High Court Enforcement Officers enforce CCJ’s transferred to the High Court
and judgments issued in the High Court by seizing the goods of the
defendant/debtor
If payment isn’t made, goods can be removed and sold to pay the amount
owing under the writ
If the defendant opts to make payment, it will be liable to pay costs awarded
under the judgment (including court fees) and the High Court Enforcement
Officers costs in addition

4. Litigation and Enforcement in the High Court
When can High Court Enforcement be used?
- Where the creditor has a judgment debt over £600.00; and
- the judgment debt does not arise from a Consumer Credit Act regulated
agreement
Note: Changes to legislation that would permit enforcement of CCA regulated
judgments are currently being considered by government as part of a package
of bailiff reforms already underway

5. Litigation and Enforcement in the High Court
When does High Court Enforcement work well?
- Where the debtor is known to have or is likely to have assets
- Particularly where debtor is a trading business
Can be used in conjunction with (and at the same time as) alternative methods
of enforcement – CPR Part 70
There may be situations in which HCE may not be appropriate and where
another enforcement method might be better employed

6. Alternatives to High Court Enforcement
Pre Litigation/Non Litigation based alternatives:
- Instructing Debt Collection Agents
- Issuing Statutory Demands
Alternative Methods of Enforcement:
- Third Party Debt Orders
- Charging Orders
- Attachments of Earnings
- County Court Bailiffs (Warrant of execution)
- Order for questioning

7. Advantages
• Inexpensive: A statutory demand is not ‘court issued’ and, as such there is
no fee (besides process server fee)
• Leverage: As the first stage in insolvency, a Statutory Demand can be an
effective way of prioritising a debt
Statutory Demands

8. Disadvantages
• If the debt is disputed in good faith and on substantial grounds, the creditor
may obtain an injunction against winding up – potential for adverse costs
award
• May cause bank overdraft facilities/lines of credit to be withdrawn, making
it difficult for the debtor to make payment
• The next step (Winding up Petition) can be costly and ultimately
unrewarding – which can leave the debtor to conclude that a Statutory
Demand is an ‘idle threat’
Statutory Demands

9. Litigation and Enforcement in the High Court
How long does the High Court Enforcement process take?
The process of obtaining a High Court writ may take 2-3 weeks, after which
time the Enforcement Officer will make an attendance to enforce the judgment
Dependent on the circumstances, the Enforcement Officer may be able to
collect payment in full or may agree terms of repayment with the debtor

10. Litigation and Enforcement in the High Court
What happens of the defendant cannot pay?
If the defendant cannot make payment in full, the Enforcement Officer will
usually attempt to set up a payment arrangement.
If the defendant refuses to make a payment arrangement we may look to
remove assets for sale by public auction
If the defendant has insufficient assets to cover the cost of removal and sale
then we may return the file for alternative enforcement action

11. High Court Enforcement v Alternative Methods of Judgment
Enforcement
• Cost of issuing a writ is lower than cost of making an application for other
modes of enforcement – making HCE a good ‘default’ method for bulk
issuers
• Since no hearing is required, using HCE is generally quicker
• HCE can be a very effective alternative to a warrant of execution

12. Litigation and High Court Enforcement v Insolvency
• Issuing claim is a less ‘risky’ method of drawing out defences if there is a
possibility that the debtor will contest the debt
• Where the debtor is a business, commencing insolvency proceedings may
have undesired effects
• Issuing statutory demands will only be appropriate where the debtor is a
‘won’t pay’ (but does not contest the debt) or where the business would
realise a value for the creditor in administration/liquidation
N.B. Obtaining judgment/enforcing using HCEO’s and insolvency are not
mutually exclusive - they can be complementary methods

13. The most appropriate method will depend on circumstances:
• Is there any mileage in retaining a customer relationship?
• What is the average debt amount?
• What is the provenance of the debt? Goods or services?
• Is the debt disputed or is it likely to be? If so, is there a substantive defence?
• Does the debtor have assets that could be seized?
• Does the debtor own a property?
• Does the debtor business have any less tangible assets; debt book etc?
Also consider what you can develop as a scalable process
Which method is most appropriate?

14. What is everyone else doing?

15. Working effectively with High Court Enforcement Officers
Ways in which you can assist your HCEO
Provide as much information as you can – is there further information you can
collect during sales process?
Explain your ‘attitude’ towards enforcement – Is the focus on payment
arrangements or removal?
Payment arrangements – What are your acceptable terms/parameters for
payment arrangements?

16. Working effectively with High Court Enforcement Officers
What to expect
Decide upon KPI’s and expect to receive management information based on
these
Method of case reporting – how would you like to receive reports, how often
would you like to receive reports and how comprehensive should they be?
Establish a key contact or Account Manager
If acting on behalf of a client, would you entrust enforcement of your own
debts to your HCEO?

17. The right debt recovery method will depend upon your particular circumstances
High Court Enforcement is very often a good ‘jumping-off’ point and can be a
way of gathering information about your debtor
In many ways, we are simply a court-authorised method of debt collection; but
with powerful sanctions for non-compliance
If High Court Enforcement is your chosen method, ensure you are working with
your HCEO effectively and monitoring progress/benchmarking
Conclusions

18. Email: adam.wonnacott@burlingtongroup.com
Call: 07788 871250 / 0845 520 2000
@BurlGroup
www.burlingtongroup.co.uk
Winners of Credit Today Enforcement Team of the Year Award 2013