to them. It is a ‘non-insolvency option’. This means, it is not a process or remedy introduced by legislation specifically in relation to the insolvency and restructuring sector. It is one that is generally available for everyone as a potential cause of action.

The debtor will take legal action to recover the debt (known as ‘litigation’). They usually take action online (but can also take physical action in court) and present evidence to support their action.

If they win their action the court will issue judgment – execution is the enforcement of that judgment.

The process of execution is usually undertaken by a High Court Enforcement Officer (HCEO) on their behalf, although the successful litigant can take steps to enforce judgment themselves. The process involves going to the premises of the debtor and taking assets to the value of the debt, selling them and passing the cash to the successful party in the litigation.

[See ‘High Court Enforcement Officer’, ‘HCEO’ and ‘Litigation’.]

Exoneration

This means to reduce the burden.

F

Factoring Debts

Debt factoring involves a business selling their invoices to a third party at a discounted price in order to bypass the hefty waiting times which are associated with the payment of invoices by debtors.

The legal title to the unpaid invoices, and the potential actions that are associated with it, passes to the factoring company.

The factoring company will then chase the debts as if they were their own. The company using the service will receive all payments for their invoices, less a percentage of the amount owed. In this way the inconvenient chasing of debtors and non-payment of invoices can be avoided.