If a debtor refuses to pay, but you know they are owed funds by a third party, this could be an effective option. However, the issuance of a Third-Party Debt Order (TPDO) must occur before the funds are paid to the debtor. This legal order freezes the debtor’s bank account and redirects funds to you.
At Talbots Law, we assist creditors in securing TPDOs to recover outstanding debts quickly.
How Does a Third-Party Debt Order Work?
- The court issues a freezing order, preventing the debtor from accessing their bank account.
- Funds are then transferred to you instead of the debtor.
- This is an effective way to secure immediate payment if the debtor has available funds.
How to Apply for a Third-Party Debt Order
- Complete Form N349 and pay a court fee.
- The court reviews the application and grants an Interim Order.
- Once granted, the court will serve the Interim Order on the debtor and any relevant third party to safeguard the available funds.
- The third party must confirm if it holds any funds until the Final Order Hearing.
- The bank is notified and freezes the debtor’s account.
- Any funds held by the third party will then be paid to the Judgment Creditor.
Supporting your Debt Recovery Challenges
Recovering unpaid debts can be a frustrating and time-consuming process, particularly if you are unfamiliar with the legal procedures involved. As experienced civil litigation lawyers, we have put together a clear, step-by-step guide to help individuals and businesses understand the debt recovery process in England and Wales.
Our series of comprehensive articles will walk you through each stage, from initial communication with the debtor to enforcement of a court judgment.
For further information and guidance, read the full series:
- Step 1 – Contacting the Debtor
- Step 2 – Sending a Letter Before Action (LBA)
- Step 3 – Issuing a County Court Claim
- Step 4 – Default Judgment & The Debtor’s Response
- Step 5 – Enforcing a County Court Judgment
- Step 6 – Warrant of Control: Sending Bailiffs to Recover a Debt
- Step 7 – Writ of Control and HCEOs
- Step 8 – Charging Orders and Orders for Sale
- Step 9 – Attachment of Earnings Order
- Step 11 – Preventing Debt Issues
Expert Legal Advice
We provide expert guidance on applying for a Third-Party Debt Order, ensuring a smooth recovery process.
Our debt recovery product, Talbots Collect, is a fixed-fee debt recovery product specifically focussed on business-to-business debts that is fast, simple, and delivered at a competitive price. If you would like to speak with one of our debt recovery experts, please complete the form below.
Disclaimer
The contents of this blog or any other published by Talbots Law cannot be considered as legal advice. You should take no action without prior consultation with a qualified solicitor or legal professional. The contents of this blog refers to the process in England and Wales.
This blog is written by Daria Stepien, a Legal Executive (FCILEx) in our Dispute Resolution team.