Is there a time limit for enforcing a money judgment? Debt Recovery

The question of whether there is a time limit for enforcing a money judgment is something that we are frequently asked about. Whether you are a creditor seeking to recover debt or a debtor clarifying legal obligations, understanding the time limits for enforcement is crucial.

The Limitation Act 1980 and Money Judgments

The primary legislation governing the enforcement of money judgments in England and Wales is the Limitation Act 1980. Under section 24(1) of this Act, the time limit for enforcing a judgment is six years from the date of judgment. After this period, a creditor may face legal obstacles when attempting to enforce the debt. Typically, they would need to apply to the court for permission. The court would consider the reason for the delay in enforcement, whether the debtor was aware of the judgment, the potential impact on the debtor and the conduct of both parties since the judgment was issued.

Case law

However, The House of Lords considered the wording of section 24(1) in a case known as  Lowsley v Forbes [1998] 3 WLR 501 (in which Lowsley was enforcing a judgment by obtaining a charging order). It held that ‘action’ means a fresh action and does not include proceedings by way of execution. This is understood to mean that enforcement proceedings within proceedings already taken to enforce a judgment already obtained are not subject to a limitation period. Section 24 is not concerned with procedures to enforce judgments already obtained but only with substantive rights to bring an action on a judgment.

In Ridgeway Motors (Isleworth) Ltd v ALTS Ltd [2005] EWCA Civ 92, it was also held that the six-year limitation period under section 24 of the Limitations Act 1980 did not apply to bankruptcy or winding-up proceedings based on judgment debts.

Similarly, in Yorkshire Bank Finance Ltd v Mulhall and another [2008] EWCA Civ 1156, it was found that there was no provision in the Limitations Act 1980 that affected the enforcement of a charging order, even where more than 12 years had passed since the order was made. An application to enforce a charging order was not an application to enforce the judgment but to enforce the charging order, which had ‘a life of its own’. In reaching its decision, as well as considering section 24, the court considered section 20(1) of the Limitations Act 1980. The Court of Appeal considers the application of the Limitation Act 1980 to the enforcement of charging orders. These decisions fit with the court’s attitude to enforcement generally, set out in case law. The starting presumption is that the court should assist the judgment creditor to recover the debt due to it by all or any of the enforcement methods prescribed by court rules (see Roberts Petroleum v Bernard Kenny Ltd [1983] 2 AC 192 and Credit Lyonnais v SK Global Hong Kong Ltd [2003] HKCA 250).

 Need debt recovery advice?

For advice on any debt recovery matter, please contact Richard Anderson at Beswicks for further information. You can email richard.anderson@beswicks.com or call us our Stoke-on-Trent solicitors on 01782 205000 or our Altrincham solicitors on 0161 929 8494. Take a look at our services to find out more about how we can help you.