Duncan Lewis Litigation Solicitors – Third party debt orders
Third party debt orders (TPDO) can be used where a court judgment has been made in favour of the creditor – the person owed money – but the debtor’s assets are being held by a third party, such as a bank or building society.
TPDOs are a court order and involve both the freezing of any assets held by the third party – as well as a court order for the third party to pay out the monies owed to the creditor.
Unlike freezing injunctions, because a judgment has already been made in favour of the creditor, there is no liability on the part of the creditor for any losses incurred by the debtor or third party.
With third party debt orders, it is necessary for the creditor to obtain details of any assets held and where they are held (eg bank or building society) – or details of any monies owed to the debtor.
It is advisable to try and maintain a co-operative relationship with the debtor at all times, so that such information can be requested and communications can remain open.
The application for a TPDO has to include details of the court judgment and also the debtor’s name and details of assets held by a third party – as well as contact details of any bank or building society or other third party involved. The exact amount of monies held by a third party will also be states on the application – and whether they will satisfy the debt or not.
Duncan Lewis civil litigation solicitors can advise at any stage of the debt recovery process – and have extensive experience in dealing with debt recovery matters, including third party debt orders.
TPDOs can be an effective method of claims recovery once a court judgment has been made in favour of a creditor, because it a third party debt order is treated as an urgent matter by the court – and a decision is usually made the same day as the application is made.
Once the order has been granted by the court, the third party will be served with an interim order and required to freeze the assets or monies held in an account immediately – and the third party will also be required by the court order to disclose any further accounts or assets being held on behalf of the debtor.
TPDOs are not only fast and effective in the recovery of claims – but can also provide a creditor with a more comprehensive view of the debtor’s ability to repay the debt.
For expert legal advice on debt recovery and Third Party Debt Orders, contact Duncan Lewis Civil Litigation Solicitors on 0333 772 0409.