Third party debt order meaning

Procedural Guide This Procedural Guide explains the process for making an application under the Civil Procedure Rules 1998 (CPR), in line with CPR 72 and CPR PD 72, together with the Family Procedure Rules 2010 (FPR 2010), SI 2010/2955, to enforce a liability owed to the debtor by a third party within the jurisdiction (formerly described as a garnishee order). It also provides direction on interim third party debt orders, duties of third parties, hardship payment orders, the evidence required and the range of orders the court may make and grant where appropriate. A third party debt order is an enforcement route enabling a creditor to recover sums, for example arrears of maintenance or a lump sum, from money payable and owed to the debtor by a third party within the jurisdiction. This encompasses funds held in the debtor’s name with a bank or building society. Whether a third party debt order is granted lies within the court’s discretion and will depend upon the circumstances prevailing at the time...

In this issue: Key DR developments Claims and remedies Cost and funding Case management Scottish Dispute Resolution New content Dates for your diary Useful information Daily and weekly news alerts Key DR developments Court information HMCTS updates Form N215 certificate of service HM Courts & Tribunals Service (HMCTS) has issued a revised English Form N215 Certificate of Service for civil proceedings, which also brings in a new statement of truth. While the layout has been updated, the details required remain unchanged, with extra notes added to assist with completing the form. For further detail, see: HMCTS updates Form N215 certificate of service—LNB News 27/01/2026 36. Additional permanent courtrooms to boost capacity The government will make four former Nightingale Courts in Fleetwood, Telford, Chichester and Cirencester permanent, creating 11 additional courtrooms across England and Wales to increase capacity for criminal, family and civil work and help cut delays. For further detail, see:...

Zubarev and another v Singh and others [2025] EWHC 2242 (Ch) What are the practical implications of this case? This ruling supplies practical direction on how a judgment creditor can pursue recovery from a debtor by accessing the debtor’s personal pension at a stage when the member’s benefits remain uncrystallised. The creditors’ strategy was twofold: first, to seek a third party debt order under CPR Part 72; and second, to obtain an order under SCA 1981, s 37 compelling the debtor to take every step required to crystallise their interests under the relevant pension arrangements, thereby creating an entitlement to a monetary payment to which the third party debt order could attach. The court held that, in this setting, a section 37 order is not merely auxiliary; rather, it is the mechanism by which scheme assets can, to the extent necessary, be turned into cash. After that conversion, a third party debt order may, or may not, be needed to complete enforcement. Accordingly, section 37 operates as the vehicle...

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This Practice Note outlines equitable execution and sets out the procedure to follow when seeking an order appointing a receiver by way of equitable execution. What is equitable execution? Equitable execution is the court’s appointment of a receiver to collect income produced by a judgment debtor’s assets. That receiver oversees those income streams and makes payments to the judgment creditor to clear the judgment debt, without conferring any entitlement on the creditor to the underlying asset. This is a different kind of receiver from those encountered in insolvency. Equitable execution is not an insolvency process and the creditor gains no proprietary interest or secured standing. It is neither a simple nor inexpensive mode of enforcement and, often, securing a third party debt order or a charging order will be the preferable way to enforce a judgment debt. Nevertheless, where the standard enforcement routes are unsuitable or unavailable, equitable execution may offer a viable path. Equitable execution is largely governed by case law...

This Practice Note addresses several frequently asked questions that may arise when deciding whether to pursue a Third Party Debt Order (TPDO). For guidance on what a TPDO is and the steps to obtain one, see Practice Notes: What is a third party debt order (TPDO)? How to apply for a third party debt order (TPDO) Does a TPDO have to be issued against a financial institution? No. You can apply for a TPDO against any third party within the jurisdiction that owes money to your debtor. This extends to an individual who is a debtor of the judgment debtor. Can a TPDO be made in respect of cryptocurrency? Following the decision in Ion Science Ltd v Persons Unknown (2020) (not reported by LexisNexis), the High Court confirmed that crypto assets are capable of being treated as property and can be traced and enforced against, including via an application for a TPDO. For guidance, see News Analysis: First third-party debt...

This Practice Note explains how to make an application for a third party debt order (TPDO). It outlines the appropriate court in which to apply, identifies the correct form to file (Form N349), and emphasises the requirement for full and frank disclosure. It also covers when and what must be served after an interim TPDO is made, the evidence to be lodged ahead of the final hearing, and the court’s likely approach to that hearing. Note: With effect from 14 August 2023, the County Court Money Claims Centre (CCMCC) and the County Court Business Centre (CCBC) were renamed the Civil National Business Centre (CNBC). This Practice Note supplies guidance on the steps to obtain a TPDO. For the overarching principles—such as which debts can be caught, the impact of a TPDO, and debtor hardship payments—see Practice Note: What is a third party debt order (TPDO)? For further material on TPDOs, see: Money owed to the debtor—overview. It also explains how...

The general rule The general rule is that when a buyer of a freehold interest enters into covenants with the seller, although the burden of restrictive obligations will in many instances bind a successor in title, positive duties requiring the covenantor to act do not run when the freehold is conveyed. A rentcharge operates as a device by which a monetary duty can pass to the successor of the initial buyer. There is no issue, as a matter of contractual privity, in imposing on the purchaser a contractual obligation to pay the seller for the supply of services relating to the land; however, matters become more intricate once the seller transfers the freehold estate to a third party. The rentcharge nonetheless entitles its holder to demand regular periodic payments of money from the owner of the freehold estate. It is not a mortgage, because it does not function as security for a debt...