CCJs Thoughts

[echo]

Just been doing some looking around and Found this on legislation.gov.uk site under the limitation Act 1980 section 24

Miscellaneous and supplemental

Time limit for actions to enforce judgments.
(1)An action shall not be brought upon any judgment after the expiration of six years from the date on which the judgment became enforceable.
(2)No arrears of interest in respect of any judgment debt shall be recovered after the expiration of six years from the date on which the interest became due.

Would this mean that a CCJ would be unenforceable after 6 years? As I did hear that they would be able to take back to court and have it re-enforced after 6 however this state’s otherwise, Could have this all wrong though but I’d like to hear some thoughts on it if anyone’s interested

many thanks
Echo

[Never-In-Doubt]

Re: CCJs Thoughts

If you don't own a home and just "move". They'd find it very hard convincing a judge to grant an extension after 5 or so years as the judges first question is "why haven't you found them in 5 years? Hardly likely you'll now find them is it?" kinda scenario.

[echo]

Re: CCJs Thoughts

Thanks for the reply niddy, you all do a brilliant job on this site.
Cheers
Echo

[Never-In-Doubt]

Re: CCJs Thoughts

[Riz]

Re: CCJs Thoughts

Allegedly for bankruptcy proceedings........

Introduction and Definition of Debt/Liability

The Court of Appeal in the case of Ridgeway Motors (Isleworth) Limited v ALTS Limited [2005] EWCA Civ 92 concluded that winding-up and bankruptcy proceedings are not an action upon a judgment within the meaning section 24 and therefore are not subject to the 6 year limitation period and that consequently there is nothing to prevent a judgment creditor presenting a petition at any time after the 6 year period has expired.

[Riz]

Re: CCJs Thoughts

Would this mean that a CCJ would be unenforceable after 6 years? As I did hear that they would be able to take back to court and have it re-enforced after 6 however this state’s otherwise,

No, it's doesn't state otherwise.

An action refers to "fresh proceedings", and does not apply to "enforcement" of the judgement which form part of the original.

So no, a CCJ doesn't become statute barred regards enforcement due to the Limitation Act.

The CPR/court rules however do set a completely separate time limit of 6 years within which to enforce. After which, leave of the court is required, not prohibited altogether.

[Riz]

Re: CCJs Thoughts

JAs I did hear that they would be able to take back to court and have it re-enforced after 6 years

You heard correctly.

However, they would have to present the court with a damn good reason as to why they hadn't attempted enforcement before that time.

[PlanB]

Re: CCJs Thoughts

Allegedly for bankruptcy proceedings........

Introduction and Definition of Debt/Liability

Rizzle. Are you suggesting that a creditor could petition for bankruptcy in order to recover money due under a CCJ even after six years have passed from the judgement date?

[Riz]

Re: CCJs Thoughts

Rizzle. Are you suggesting that a creditor could petition for bankruptcy in order to recover money due under a CCJ even after six years have passed from the judgement date?

So says the court of appeal.

http://www.bailii.org/ew/cases/EWCA/Civ/2005/92.html

[oldyboy]

Re: CCJs Thoughts

That's how it read at first to me, PB, but might the petitioner find it difficult to convince a judge, such as 'you couldn't be bothered to try and enforce the CCJ within the 6-year timescale, so why should I grant this now'.

[Riz]

Re: CCJs Thoughts

May explain better?

PLC - Ask the team: Is there a limitation period for enforcing a money judgment?

[PlanB]

Re: CCJs Thoughts

That's how it read at first to me, PB, but might the petitioner find it difficult to convince a judge, such as 'you couldn't be bothered to try and enforce the CCJ within the 6-year timescale, so why should I grant this now'.

To which the creditor will say "we've been playing cat and mouse for 10 years while the debtor has failed to provide his current address contrary to (most) Ts & Cs" I don't like the sound of all this at the start of my day

[Riz]

Re: CCJs Thoughts

CAB also commented on this in 2009 when the consultation for reducing the 6 year LP was doing the rounds.

http://www.citizensadvice.org.uk/lim...t_recovery.pdf

We are disappointed that the consultation does not consider introducing time limits for the
enforcement of judgments.

Currently, there are no time limits for the enforcement of judgments,
other than by way of execution of goods (see CPR Schedule 2 CCR Order 26 rule 5 and CPR
Schedule 1 RSC Order 24 rule 2(1) which requires judgment creditors to apply for leave to enforce
judgments where 6 years or more has passed since the judgment was entered.

Therefore, creditors can wait indefinitely to enforce judgments and this can be very unfair to judgment
debtors. It would be far better for creditors to have to apply for leave to enforce by execution where
three or more years have passed since the judgment was entered and for all methods of enforcement
to come under the same regime. This would require amendment to the CPR.

We welcome the proposals at paragraph 28 in relation to a reduction on the limitation period for
bringing actions on a judgment. We would, however, like to point out to the Ministry of Justice, that
we believe that a bankruptcy petition on an unpaid judgment is an incorrect example of an action on a
judgment. In the case Ridgeway Motors (Isleworth) Ltd v Alts Ltd [2005] EWCA Civ 92, the court
held that although a winding up petition was ‘proceedings in a court of law’, insolvency proceedings,
whether corporate or personal, were neither an action on a judgment under s24(1) nor the
enforcement of an existing judgment under Lowsely v Forbes. We would therefore welcome
clarification from the Ministry of Justice on whether they intend to bring petitions based on unpaid
judgments within the definition of ‘action on a judgment’ under section 24(1) of the Limitations Act. If
the MoJ does intend to do this, Citizens Advice would welcome it.

[PlanB]

Re: CCJs Thoughts

Thanks for all this Rizzle. The expression 'you can run but you can't hide' springs to mind But I'll take heart from Niddy's post # 2 because if you aren't a homeowner the creditor may not be motivated to go down the bankruptcy route It also flags up the usefulness of getting a watertight F & F whenever possible. I would like to think a DJ or bankruptcy court would be reluctant to grant further enforcement options in the absence of having the debtor actually in front of them. Stay under the radar may be the way forward for some

[Riz]

Re: CCJs Thoughts

Despite all that looking very very scary and disheartening, I have to say that in the 4/5 years I've been on forums such as this that I cannot recall a case where a creditor has enforced after such a delay, let alone made someone bankrupt.

Not saying that it can't or doesn't happen, but it seems to me to be a rare or unlikely prospect.

So a technical possibility to bear in mind, but not something to let weigh on it too much.