Third Party Debt Order

A Third Party Debt Order provides for a judgment creditor to obtain an order for the payment to him of money which a third party who is within the jurisdiction owes to the judgment debtor. A third party may include bank or building society.

An application for a third party debt order will initially be dealt with by a judge without a hearing and he may elect to make an interim third party debt order.

Copies of any interim third party debt order, the application notice and any documents filed in support of it must be served on the third party, not less than 21 days before the date fixed for the hearing and on the judgment debtor not less than 7 days after a copy has been served on the third party. Service on the debtor must also be at least 7 days before the date fixed for the hearing.

In terms of a bank or building society served with an interim third party debt order, they must carry out a search to identify all accounts held with it by the judgment debtor and thereafter they must disclose to the court and the creditor within 7 days of being served with the order, in respect of each account held by the judgment debtor:

  • the number of the account
  • whether the account is in credit
  • if the account is in credit:
    • whether the balance of the account is sufficient to cover the amount specified in the order
    • the amount of the balance at the date it was served with the order, if it is less than the amount specified in the order
    • whether the bank or building society asserts any right to the money in the account, whether pursuant to a right of set-off or otherwise, and if so giving details of the grounds for that assertion.

Upon the application of a judgment creditor, the court may make an order (a ‘final third party debt order’) requiring a third party to pay to the judgment creditor:-

  • the amount of any debt due or accruing due to the judgment debtor from the third party; or
  • so much of that debt as is sufficient to satisfy the judgment debt and the judgment creditor's costs of the application

The content of this website is for general information only and should not be relied upon. It is not intended to be construed as legal advice and should not be treated as a substitute for specific advice.