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HMRC internal manual

Debt Management and Banking Manual

From
HM Revenue & Customs
Updated
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Enforcement action: county court proceedings: warrants of execution: setting effective instalments to allow a warrant to be effective

Where the judgment debtor has insufficient goods to recover the full amount of the judgment debt, but sufficient to recover a reasonable portion of it, a warrant of execution may be a very useful means of enforcement.

To be most effective, the amount that can be realised by selling the goods should be greater than the amount the debtor is able to pay (or has been ordered to pay) each month. If the order is for payment forthwith, a debt manager should consider applying for a new order for payment by instalments. The instalments should be at a level that the defendant can pay each month so that in default, the order can be enforced by warrant of execution, repeated if necessary.

Applying for a new order for payment

The claimant should prepare form N294 and send it to the court.

The court will

  • make the new order (form N35)
  • send a copy to the judgment debtor.

As soon as there is default in payment of one or more instalments sufficient to justify enforcement action (the amount is £50 or more), you should apply for the issue of a warrant of execution for the overdue instalments.