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Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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I am a creditor and the debtor has acknowledged a debt of

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I am a creditor and the debtor has acknowledged a debt of £45,000 to me in a legal document. In return for my not claiming immediate repayment, he has entered into a Settlement Agreement with me whereby he will repay the debt from the proceeds of the sale of his house which is now nearing completion.As per the agreement, he has instructed his solicitor accordingly but he is also expected to give instructions for the issue of a legal undertaking to me by this solicitor that he will pay me that amount within 7 days of the monies being received. This is, of course, to prevent him countermanding instructions at a critical time. The solicitor confirms that he has received instructions to that effect but has declined to provide that undertaking. The debtor has been given the choice of chosing another solicitor with me paying fo any extra cost or offering me a charge on the property but he has not responded.
In view of his past deceits, I cannot afford to take chances. Completion is imminent. What is the way forward?

Hello my name is ***** ***** I will help you with this.

Do you have a County Court Judgment or anything?

Customer: replied 1 year ago.
A county court claims has just been issued but no judgment yet.

Thanks, ***** ***** would want an undertaking.

However you have not. If you had a claim form then ideally you would want Judgment so you could enforce by way of charging order, this makes the debt secure.

But you dont have this and therefore are not really in a position to stop the sale. All you can do is if the debtor does not pay up, is apply to the Court to freeze those funds and seek payment.

But sadly you cant do this yet, because the debtor hasnt breached any agreement.

You would ideally need a Court order but dont get one until there is a breach.

But you should have got Judgment with a restriction on the property.

However you would make him bankrupt if he doesnt pay and the Receiver can reverse any payments he has sent out.

I am sorry if this is not the answer you want and its certainly not the one I want to give you, but I have a duty to be honest.
Can I clarify anything for you about this today please?

Customer: replied 1 year ago.
I have a claim no. from Northampton. There is no way that the debtor can deny the claim but it is only at the end of the month when the delay allowed him to respond has expired that judgment will be delivered allowing me to apply for a charging order. Is there any way that with or without this claim no. ,I could obtain an urgent chargingorder/freezing order/any order from any court?.

No, because he hasn't breached anything. If he had you be ok, but he has not. Therefore you can only assume he will pay you upon completion.

If he does not then and only then can you apply to freeze his account.

Can I clairfy anything for you about this today please? Alex

Ash and other Law Specialists are ready to help you