Third party debt orders
Usually the order is made against your bank or building society that is holding your money for you. However, they can also apply for an order if you are due to get a lump sum such as:
With the order, the creditor could get your employer, solicitor or insurance company to pay the money to them instead of you.
A judgment creditor can apply to the court for an order to obtain information to find out details about your bank accounts, savings or whether you are expecting a lump sum payment. See enforcement for more details about information orders.
The first step is to apply for an interim third party order which prohibits the third party (such as your bank) from making any payment which may reduce the amount available to less than what you owe to the creditor plus the cost of the application. This has the effect of freezing your account but no money is taken. The interim order is made ex-parte (without notice) so as to prevent you from withdrawing money.
The interim order is made final at a hearing which must be at least 28 days after the interim order is made. If you wish to object to the final order, you must file a witness statement with any evidence setting out your objecton, at least three days before the hearing.
Upon receipt of the interim order, a financial institution must search for any accounts in your name, freeze them and provide details to the court and the creditor within seven days. The bank can deduct £55 from your account towards admin costs.
Hardship payment order
If the third party debt order is causing you and your family hardship in meeting ordinary living expenses, you can apply to your local court for a hardship payment order. The application is made on FormN244 and a fee is payable, however, you may qualify for fee remission. See EX160a fee remission.
Explain how other family members are being affected, such as children or an elderly or disabled relative living with you. Fill in the form and take it to court yourself with evidence such as: