Has anyone used third party debt orders to recover debts?

Has anyone used third party debt orders to recover debts?

0:25 AM, 29th August 2024, About a month ago 1

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I have received a court judgment against my ex-tenants, but they have left without a forwarding address.

One of the tenants is receiving partial benefits, therefore I can’t use an attached earning order to reinforce the court order. I wonder if I could use a third-party debt order to recover the debts they owe me.

Has anyone used this option before?

Can you please let me know how effective this option is?

Many Thanks

Fed Up Landlord

Below from .Gov >> https://www.gov.uk/government/publications/third-party-debt-orders-and-charging-orders-ex325/apply-for-a-third-party-debt-order

Third party debt order

A third party debt order is an order of the court that freezes money that might otherwise be paid to the defendant of a judgment. This order can be made against a:

  • person
  • organisation or institution – such as a bank or building society

The person or organisation holding the money is called the ‘third party’. A third party debt order will stop the defendant having access to the money until the court makes a decision. The person who owes the money is the ‘debtor’, and the person who is owed the money is the ‘creditor’.

The money held by the third party must only be held for the debtor. For example, you cannot apply for a third party debt order against a joint bank account unless the money is owed by all the account holders.

When to apply

You can apply after you have a judgment. The judge will only make an order if the debtor has failed to pay either:

  • the amount of the judgment when it was due
  • one or more of the instalments due under the terms of the judgment

It is important to consider when to make your application. The court order sent to the third party will only freeze money held in an account on the day it is received by (served on) the third party. For example, if the order is received before the debtor’s salary is paid into their account, you are likely to receive little or nothing. This is because the freeze will not be applied to any money paid into the account after the court’s order was received.

How to apply

You must complete form N349.

If you have a money claim issued in the Civil National Business Centre you must apply to the court that covers the debtor’s homes address. You can find the nearest court using the debtors address.


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Throwing in the towel LL

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15:52 PM, 30th August 2024, About a month ago

I speak from my own experience concerning a Money Claim Court Order. You will need to use Debttrace to find your ex-tenants new address then apply back to the court to have the address on the claim changed, this will cost £119. You will then have another long wait for it to be applied to your claim and the order to be re-served on your ex-tenant at their new address. I don't know about a third party debt order but I still think you would have to find the persons new address and get the order served there first before anything else could be put into action. Good Luck

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