Enforcement action: county court proceedings: administration orders: amounts becoming due after the AO has been made
Amounts due after AO made
Where an amount becomes payable after an AO has been made, take normal collection action and make every effort to obtain settlement in one sum or by reasonable instalments.
A debt due after the date of an AO and included in the AO later will not attract a dividend until the originally scheduled debts have been satisfied.
Payment not made
If you cannot make a reasonable arrangement for payment and the debtor either has not applied for the amount to be added to the AO (see below) or has had such an application refused, the higher debt manager must decide whether court proceedings are worthwhile by considering
- the debtor’s circumstances
- the duration of the AO
- any other relevant factors.
Where proceedings are possible but not considered worthwhile, refer the papers to your Group Office with a full report.
Court proceedings commenced
If you take court proceedings, and at a hearing you are asked why the sum claimed was not scheduled in the AO explain to the court that
- the amount in question became payable after the date of the AO
- you consider that the debtor should meet any current liabilities despite the AO.
If the court adds the liability to that scheduled in the AO, confirm that the fees have been included. If not treat them as irrecoverable.
Where you obtain judgment make every effort to obtain payment.
If you do not obtain payment refer the papers to the Group Office with a full report.
Debtor applies for the amount to be added to the AO
Where the debtor applies for the amount to be added to the AO, the court will send you a notice giving a period in which you may object. If you receive such a notice
- consider whether to file an objection
- ask for the case to be set down for hearing
- complete certificates of debt as necessary
- check to see whether the further amount (including interest chargeable to the date of the hearing) will cause the debts to exceed £5000).
Pre - hearing checks
Before the hearing
- carry out an RP check (DMBM615040)
- prepare certificates of debt as appropriate (DMBM615420)
- prepare an imminent proceedings list
- note the appropriate computer records.
At the hearing
At the hearing explain to the court that the amount in question became payable after the date of the AO and that you consider that the debtor should meet current liabilities despite the AO. Draw the court’s attention to the exceeded limit in appropriate cases.
If the District Judge decides to add the further amount to the AO
- advise the District Judge of the correct amount due (including interest to date)
- produce certificates of debt as necessary
- make a suitable note on the case papers about the allocation of dividends.