Debt Enforcement – Make It Public by Registering a Judgment
Once you have obtained judgment against your debtor, the next step is enforcing that judgement so that you can get paid. Although there are a number of different methods by which you can enforce a judgement, one method of debt enforcement that can be quite effective is making the debt public.
How will registering a judgment help me get paid faster?
Publicising a judgement does not enforce the judgement made against the debtor, i.e. it will not force the debtor to pay the debt there and then, but often the threat of making the Judgment public is sufficient to bring about payment of the debt where a debtor is afraid of the negative impact such publication may have on their business.
Judgements are publicised in a number of different locations; magazines, databases, websites, for example and for the debtor this could have a negative impact. Publicised judgments can have an impact on a company’s;
- credit rating. This can lead to difficulties in borrowing money in the future if there is a judgement against them publicised. It is in their best interest not to have a judgement against them publicised.
- professional reputation. A publication could let other business know to avoid doing business with this debtor or perhaps change how they do business with them. Such an approach works both ways, so that if you see a Judgment registered against a business you do business with you can make a decision not to deal with that business or at least be more cautious in your dealings keeping your risk of bad debt at bay.
How can I register a Judgment?
Once judgement has been issued, you can publicise it by registering the judgment in the Central Office of the High Court. It is important to note that you must tell your debtor that you intend on registering the judgment and give them an opportunity to pay the debt before making it public.
It has been found that the threat of publication can be very effective and in order to make the process as simple as possible for you Carlisle Solicitors will always write to the debtor when Judgment has been obtained to inform them of such a consequence and give the debtor a further opportunity to pay their debt – this way you do not have to do this yourself. It is a relatively inexpensive method of enforcement of your Judgment and usually quite a quick process.