Third party debt order - Pros and cons

The cost to apply for a Third Party Debt Order is £100 (correct as of February 2011) and to apply you need to complete form N349 which is downloadable from the HMCS website.


It can be a very effective tool in collecting debts but it is quite complex.


Firstly, you need to have secured a CCJ against the debtor and the debtor needs to have either:-

a) Not paid the CCJ within the given timescale (by the court)
b) Not kept up to instalments


Once you have completed the Third Party Debt Order the court will freeze the debtors bank account and issue a date for a hearing. The debtor would be given no prior warning and would simply not be able to access any funds (and no funds will be able to be paid in), as with everything the debtor would be given the chance to appeal. At the hearing the judge would decide whether to grant the order and indeed pay the creditor from the funds held in the bank account.


This may all sound simple BUT there are several things to consider such as:-

• Not possible on a joint bank account unless both account holders are liable for the debt
• Only available if the debtors bank (head office) is in England or Wales
• The date is very important i.e. you need to be sure funds are in the account to cover the debt.
• If for example the CCJ is for £2000 and there is only £1999 then you would not get anything.


If you would like more information regarding debt collection then please do not hesitate to contact us on freephone 0800 4 96 95 94.