Debt judgments down by 27%, new figures show
The combined value of UK debt judgments fell sharply last year, according to statistics collected from courts across the UK.
Figures released yesterday by Registry Trust, a non-profit company which runs a UK-wide register of judgment information, also show a rise in the use of online searches.
In the first six months of 2012, the total value of judgments dropped by 27.1% compared with the same period last year, from £1.49bn to £1.09bn. In the half year Registry Trust collected and processed 324,345 judgments in the UK, 43,525 fewer than the 367,870 registered in the first half of the previous year.
Registry Trust was set up in 1985 to operate the Registry of County Court Judgments for England and Wales. It now operates the Register of Judgments, Orders and Fines for England and Wales on behalf of the Ministry of Justice.
It also maintains public records of judgment and decree information for other jurisdictions in the British Isles including Northern Ireland high court information and ordinary cause data from Scotland.
Comments
Compensation Culture
It should be down 100%. This is the compensation culture gone mad. No win no fee, fat cat lawyers etc, etc..
Odd comment
Why should debt claims be down 100% and is a sign of compensation culture gone mad? Debt claims are about collecting unpaid debts/loans/etc, not claiming compensation.
Look at the username
Look at the username
Judgment debts down but overall debt increasing
As we read in the press that overall debt is increasing, these stats are not indicative of less debt, there must be other reasons why the number of CCJs is falling. I can think of several
1. loss of confidence in court based collection systems - unfortunately solicitors usually get blamed for this so it turns into reluctance to instruct solicitors
2. increase in collection companies that do not use the courts, often perceived to be quicker and cheaper
3.creditors' own precarious financial position precludes spending vast sums on court fees particularly where there is a non-court no-win-no-fee option
4. creditors too busy trying to find new business and keep their companies afloat
etc
etc
etc
Fall in Judgment Debts
As a solicitor and High Court Enforcement Officer I read the stats with interest and indeed I blog continually about what's going on in the enforcement world at www.shergroup.net/blog.
I agree with the earlier comment about the lack of confidence in the system of enforcement.
Having started with Burchell & Ruston in 1980 and been articled to Alastair Black, both a terrific lawyer and Under Sheriff, I have had a front ring seat with the changing fortunes of the Sheriffs and Government.
In that debate I have often been disappointed that the legal profession has not been more determined to get justice for their creditor clients by insisting that the bailiffs up their game or that they have freedom of choice to use either bailiffs or HCEOs.
There is no doubt in my mind that being incentivised to enforce produces better results and whilst one cannot get "blood out of a stone" generally I think HCEOs are much more determined to deliver a result to their client.
So how can a solicitor take advantage of transferring judgment debts to the High Court? It costs 60 POUNDS to seal the Writ of Fifa and all HCEOs will provide a free service to transfer the judgment. It may cost another 60 POUNDS to the client if the HCEO is unable to enforce.
However if the enforcement is successful it costs the judgment creditor nothing, and interest runs at 8% per annum from the date of transfer of the county court judgment, or the date of judgment (if it was given in the High Court). Costs of execution of 101.75 POUNDS are also added to the judgment debt.
I am very happy to give professional colleagues any advice on enforcement that I can - please look up the Shergroup Community on LINKEDIN or contact me directly by email at c-sandbrook@shergroup.net. I for one would very much like to see the professionalism of solicitors taking a lead in the enforcement debate as they can add so much value to the whole process.
debt judgements
Oh let me see here....we do not receive payment after completing the work in a timely fashion. The client just says I cannot afford to pay so I will not. We then have to spend more money on court costs and are awarded a judgement. The client pleads guilty and then asks for an instalment order.
the court then hears their overinflated sob story and awards us (on a 10k debt) ......67p PER MONTH.
Wake up people are you really wondering why we do not waste any more money on obtaining judgements when the courts will believe any sob story without checking this is in fact the case.
And people wonder why lawyers are now the laughing stock of this country!!!!!!!!!!
Roll on escaping the 'honourable professions'. What is so honourable in doing 10 works , only being able to charge for a fraction of its worth, to be threatened with negligence just for daring to advise a client in the of the consequences of taking a certain course of action as per the real world in stead of the yes sir no sir world and then not being able to get paid unless we accept 67p a month.
Follow Up on Comment on Enforcement
Dear A Bell - sounds like you are cheesed off - to put it mildly - always happy to share a vent on the subject of enforcement although I wasn't quite sure if you were fed up with the client or the debtor who is ordered to pay 67p a month on a 10K debt. Either way can I say "been there, done that, got the TV shirt - and dare I say made it all into SherTV!"
But there is some hope - and we continue to escalate cases to removal where people who apparently have nothing are driving around in posh cars, trading shops stuffed with stock, and are running their restaurants with customers inside - and all within the scrutiny of the Queen's Bench and Chancery Masters who continue to support the work we do with proper judicial oversight.