Interest on judgment debt

The New Law Journal Judicial Line of 4 June was asked if an application for a charging order ranks as enforcement or the purpose of terminating interest on the judgment debt. The answer was: ‘No. The County Courts (Interest on Judgment Debts) Order 1991 which establishes a creditor’s entitlement to interest on a judgment debt of at least £5,000 expressly excludes an application for a charging order as an enforcement step which would otherwise stop interest running. If other enforcement action fails to produce any payment from the debtor then interest is unaffected. An astute debtor might pay a nominal sum under a warrant of execution and thereby stop judgment debt interest running for good. A creditor will avoid this trap if he enforces in the High Court where he is able to do so.’