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HMRC internal manual

Debt Management and Banking Manual

From
HM Revenue & Customs
Updated
, see all updates

Enforcement action: county court proceedings: warrants of execution: judgment debtor becomes insolvent or enters into a voluntary arrangement after issue of warrant of execution

Debtor insolvent

Where you learn of a judgment debtor’s insolvency after you have issued a warrant of execution or writ of fi fa

  • tell the court in writing

    • that the judgment debtor is insolvent and you do not intend taking further proceedings
    • that the warrant should be suspended
  • treat any unpaid court fees not awarded by the court as irrecoverable
  • refer the papers to ICHU as in INS2303 who will include any unpaid court fees and costs awarded by the court in the Department’s claim.

Where the court learns of a judgment debtor’s insolvency (other than from you) it will send you notification on form N331 to say it has withdrawn from possession of goods seized under the warrant of execution, or has paid over any money it is holding to the trustee or liquidator.

On receipt of form N331, you should take action as in INS2303.

Individual voluntary arrangements

Where you learn that the judgment debtor has entered into an Individual Voluntary Arrangement or that an interim order has been made, and it is after you have issued a warrant of execution or writ of fi fa

  • tell the court in writing

    • that you do not intend taking further proceedings
    • that the warrant should be suspended
  • treat any unpaid court fees not awarded by the court as irrecoverable

Take further action as in DMBM660460 onwards.