DMBM681430 - Ordinary Cause: Preparing full discharges
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A full discharge can only be provided when you receive payment of:
- the whole of the debt included in your action
- all expenses
- statutory interest accrued to the date of payment.
That being so you must make it clear to the defender that the discharge can only be provided once you are in possession of cleared funds (a bank or building society cheque or a cheque drawn on a Solicitor’s client’s account are regarded as cleared funds).
If either the defender or his agent intends to make payment by way of a personal cheque you must advise him that the discharge will not be given until the cheque is cleared by the bank. This will usually delay the issue of the discharge for a further 14 days.
Defender’s solicitor to prepare full discharge
Where the defender has a solicitor acting for him you should request that he ask his solicitor to prepare a form of discharge and send it to you for checking and signature.
On receipt of this you must check the discharge to ensure that the details shown are correct and then arrange for signature.
Wherever possible the signature should be that of the debt manager named as the pursuer in the action.
You should then take a photocopy of this document and retain it with your case papers.
Debt management office to prepare full discharge
Where you receive a request for a full discharge from a defender who has no solicitor acting for him you must explain that a full discharge can only be granted once the whole debt is paid. You must also advise the defender that payment should be made by banker’s draft or a building society cheque if he wishes you to issue an immediate discharge. If the payment tendered is in the form of a personal cheque you must then explain to him that there will be a further delay in issuing the discharge until the cheque is cleared.
Once you are satisfied with the arrangements for payment you should prepare the discharge.
This must be typed in the format shown on high quality deed paper so that it endures and the paper should be blue in colour wherever possible.
Information that must be shown on the reverse of the discharge
The following details must be shown on the reverse of the discharge on the right hand side of the page.
For an individual
DISCHARGE OF INHIBITION
by
IAN HOUND
Officer of Revenue and Customs
against
BRIAN FOX
Debt Management Office Barking
For a Partnership
DISCHARGE OF INHIBITION
by
IAN HOUND
Officer of Revenue and Customs
against
JOHN BLUNT and
MRS SUSAN BLUNT the whole partners of the firm of RAZOR EDGE & CO
Debt Management Office Barking
This is so that when the discharge is folded lengthways it will then be readily identifiable. Lastly the debt manager who initiated the ordinary cause action should sign the discharge.
Information that must be shown on the front page of the discharge
The following details must be shown on the front page of the discharge.
For an individual
I, IAN HOUND, an officer of HM Revenue and Customs, Beagle House, Great Dane Street, Barking HEREBY DISCHARGE the Inhibition at my instance against BRIAN FOX, Painter, who resides at Briar Lane, BARKING BB1 2HO proceeding upon Letters of Inhibition containing Warrant for Inhibition at my instance signed the second day of February and executed against the said BRIAN FOX on the third day of February and registered in the Register of Inhibitions and Adjudications on the twelfth day of February, all in the year Two thousand and six and all that has followed or is competent to follow upon the said Inhibition; and I warrant this discharge at all hands: IN WITNESS WHEREOF* these presents consisting of this [** and the (insert number) previous] page(s) are signed by me before DAVID BASSET, an officer of HM Revenue and Customs, Beagle House, Great Dane Street, Barking on the twelfth day of June, Two thousand and six at the aforesaid Beagle House, Great Dane Street, Barking.
| (insert) | (insert) |
|---|---|
| signature of Pursuer | signature of Witness |
**this wording need only be included in the exceptional case where more than one page is required.
For a Partnership
I, IAN HOUND, an officer of HM Revenue and Customs, Beagle House, Great Dane Street, Barking, HEREBY DISCHARGE the Inhibitions at my instance against JOHN BLUNT and MRS SUSAN BLUNT residing at 4 Sharp Way, Barking BB1 3TU, the whole partners of the firm of RAZOR EDGE & CO as such partners and as individuals proceeding upon Letters of Inhibition containing Warrant for Inhibition at my instance signeted the second day of February, and executed against the said JOHN BLUNT and MRS SUSAN BLUNT on the Third day of February and registered in the Register of Inhibitions and Adjudications on the Twelfth day of February, all in the year Two thousand and six and all that has followed or is competent to follow upon the said Inhibition; and I warrant this discharge at all hands: IN WITNESS WHEREOF * these presents consisting of this [**and the (insert number) previous] page(s)are signed by me before DAVID BASSET, an officer of HM Revenue and Customs, Beagle House, Great Dane Street, Barking on the twelfth day of June, Two thousand and six at the aforesaid Beagle House, Great Dane Street, Barking.
| insert | insert |
|---|---|
| signature of Pursuer | signature of Witness |
** this wording need only be included in the exceptional case where more than one pageis required.
Next steps
Where the defender’s solicitor has prepared and forwarded discharge to Debt Management Office
Once you have checked and signed the discharge prepared by the defender’s solicitor you should arrange a meeting with the defender or the defender’s solicitor on the settlement date of the property sale. This is so that you can arrange to hand over the discharge in return for payment as long as the payment is in the form of a bank draft/building society cheque or a cheque drawn on a Solicitor’s client’s account. If however the payment is in the form of a personal cheque then you must inform the defender/defender’s solicitor that you will be unable to hand over the discharge to him until the cheque has cleared. (In this situation it will be necessary for you to make suitable arrangements with the defender/defender’s solicitor for the discharge to be handed over to him.)
Where Debt Management Office has prepared the discharge
Once the appropriate form of discharge has been completed you must arrange a meeting with the defender to exchange the document for payment of the debt.