Helping hand for creditors
Kent businesses trying to get money from people
who refuse to pay their debts now have a new weapon at their
Kings Hill-based Vertex Law has welcomed a High Court decision
forcing a debtor to take a lump sum from his personal pension fund
and to hand it over to his creditors.
“This is a new development in the world of debt recovery and is
a welcome addition to the options open to creditors when trying to
recover the money they are owed,” said Louise Worton, a solicitor
in the dispute resolution team.
The ruling follows a long-running legal wrangle by a group of
creditors seeking to be paid the full sum that they had been
awarded in the courts.
The claimants, who were victims of a former friend who had
committed fraud and forgery, were unable to recover the full
judgment sum from the debtor’s real property and shares and looked
to the debtor’s remaining asset – his pension fund – to pay the
remaining money they were owed.
A High Court judge upheld their argument and gave the creditors’
solicitor permission to withdraw a lump sum from the pension fund
which would then be used to clear the remaining debt.
“Unfortunately there are always people who try to avoid paying
the money that courts say they owe – and creditors have to take
legal enforcement action,” added Ms Worton.
“Looking to a debtor’s pension pot will not be applicable all
the time – they may not have one – and is likely to be something
you would do as a last resort, but nonetheless the ruling is good
news for creditors and will help ensure that money ends up in the
Council officers raised concerns about Italian investors' possible mafia links when it was drawing up a rescue package for debt-ridden Transeuropa.
Company chiefs in the county say "wholesale review" of business rates would be welcomed but admit they do not know what the alternative is.
Read all county news