I understand that judgment debt interest in the county court ceases to run if and when enforcement action is taken?
I understand that judgment debt interest in the county court ceases to run if and when enforcement action is taken. Does an application for a charging order rank as enforcement for this purpose?
No. The County Courts (Interest on Judgment Debts) Order 1991 (SI 1991/1184) which establishes the creditor’s entitlement to interest on a judgment debt of at least £5,000 expressly excludes an application for a charging order as an enforcement step which would otherwise stop interest running. If other enforcement action fails to produce any payment from the debtor then interest is unaffected.
A wily debtor might pay a nominal sum under a warrant of execution and thereby stop judgment debt interest running for good. A creditor will avoid this trap if he enforces in the High Court where he is able to do so.
