How does a third party debt order work?
Firstly the creditor applies to the court for the order. A fee of £110 will be added to your debt and the court will write to your bank or building society telling them to freeze your account. Your bank or building society can also charge you up to £55 when they freeze your account.
A week later the court will send you a form called an N349 Interim third party debt order telling you that the money in your account has been frozen.
Only the amount of money in your account at the time of the application is frozen. Any money paid in after this is not frozen and you can withdraw it. If the amount in your account is more than the CCJ and court costs only that amount will be frozen and you can withdraw anything extra.
The interim third party debt order will include a date and time to attend your local County Court hearing centre. You’ll get at least 28 days’ notice.
At the hearing a judge will decide whether to make a final third party debt order. If the judge agrees to do this, your bank or building society will pay the frozen money to your creditor.
If you don’t want the final third party debt order to go ahead you can explain your reasons to the court at the hearing.
For example, you could object to the order if your whole monthly wage has been frozen if this has left you unable to afford your essential living costs and payments to other priority debts.