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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: Third Party Debt Orders (TPDOs): action to be taken by third parties

Action by Banks (except the National Savings Bank) and Building Societies

Banks or Building Societies served as third parties must search all their accounts within 7 days of service and for each account held individually by the judgment debtor, provide:

  • the account number
  • whether the account is in credit and, if so
  • whether the balance is sufficient to cover the amount specified in the order; if it is less, then they must provide the amount in the account when the order was served.

The bank or building society must inform the court and the judgment creditor within seven days of service of the order if:

  • the judgment debtor does not hold an account with the bank or building society
  • the bank or building society is unable to comply with the order for any other reason, for example because it cannot identify the precise judgment debtor involved.

If you are notified of such an event and you can provide further information (for example any other name the judgment debtor has used, such as a maiden or stage name, the judgment debtor’s date of birth and so on), you should file and serve your evidence immediately. You will need to liaise with the court about the hearing date.

If you accept the bank or building society’s statement:

  • withdraw your application
  • write off the court fees
  • consider enforcing the judgment by alternative means.

If you are in doubt, refer the paper to the EIS Bradford CCP Technical Team.

Action by other third parties

Other third parties who are not banks or building societies, must inform the court and the judgment creditor in writing within seven days of service of the order if either:

  • they are not indebted to the judgment debtor
  • they owe the judgment debtor an amount less than the amount in the order.

If you are notified of such an application and you have evidence to refute it, you must file and serve written evidence at least three days before the hearing, setting out the grounds on which you dispute the third party’s case. The matter will be decided at the hearing of the final third party debt order.

If you accept that the third party owes the judgment debtor an amount less than the amount in the order, attend the hearing and ask for payment of that lesser amount.

If you accept that the third party does not owe the judgment debtor any money:

  • withdraw the application
  • write off the court fees
  • consider enforcing the judgment by alternative means.

If you are in doubt about the third party’s claim, refer the papers to the EIS Bradford CCP Technical Team.