ROYAL COURT OF JERSEY
RC21/03
Applications for a Dégrèvement
After a
judgment debtor (“debtor”) has received formal notification from the Viscount,
(following an Acte Vicomte chargé d’écrire) to satisfy a judgment debt, a judgment creditor (“creditor”) may,
after a period of two months in the
case of a judgment of the Royal Court or a period of three months in the case of a judgment of
the Petty Debts Court apply to the Royal
Court for an act declaring the debtor’s immoveable property renounced with a consequential
order for a dégrèvement. Such
applications have historically been made without notice to the debtor.
With
effect from the date of this Practice Direction when making such an
application, the creditor must be able to demonstrate to the Court that all
reasonable steps have been taken to give notice to the debtor of the creditor’s
intention to make an application at that time on that day. Notice to
the debtor should be given substantially in the form set out in the attached
schedule. Personal service is not necessary.
At least 4
working days must elapse between the date on which notice of the intended
application is given to the debtor and the date for the hearing of the
application. All supporting evidence to be relied upon at the
hearing shall also be provided to the debtor at the same time as the notice of
the intended application is delivered.
The
Viscount is to be given written notice of the application (and all evidence
relied upon) at the same time as notice of the application is provided to the
debtor.
This Practice Direction will come into force with
immediate effect and will replace Practice Direction RC15/02 which is repealed.
Schedule
Dear
[debtor]
Your
current position and the dégrèvement proceedings.
As you are
aware, we are instructed by [creditor] and on [date] judgment was taken against
you in the sum of £[ ]. We obtained
an order from the [Royal/Petty Debts] Court (without notice to you) on [date]
for an Acte Vicomte chargé d’ecrire which was served on you on
[date]. That order gave you notice that if you did not repay the
debt within [two/three] calendar months from the date of the order, your assets
may be adjudged renounced by the Royal Court. In other words, any property you
own could be seized for the benefit of one or more of your creditors.
Unless
payment in full is received by [date] our client has instructed us to make an
application for renunciation at the next Royal Court sitting on [date]. This
letter constitutes formal notice that this application will be made; for any
land or buildings you own the application will be for a process known as dégrèvement. For all your other
possessions or property which is not land the application will be for a process
known as réalisation.
The
purpose of this letter is also to warn you of the effect of a successful
application for dégrèvement/ réalisation, so
that you may take immediate legal advice in relation to this matter, as there
may be alternative options available to you that the Royal Court may order, in
particular a declaration of désastre (bankruptcy) or a remise
de biens. The Viscount’s Department have
published guides on Désastre, Remise and Dégrèvement,
explaining the concepts and how to apply for them, copies of which are
available on their website at www.courts.je or on request in writing to the
Viscount. You should consider whether these alternatives may
be more appropriate for your financial situation. Notice is given of
the date and time we will be making this application so that you can attend
Court if you wish to make such representations as you think fit.
In
summary, if the renunciation application is granted, the Royal Court will order
a dégrèvement of any immovable
property i.e. land or buildings in your name. The court may also
order a realisation of any movable property which is the remainder of your
property which is not land or buildings.
Following
an order for renunciation, two Advocates or Solicitors will be appointed by the
Royal Court to be Attournés, and they
will have possession and care of all of your property
from the date of the order. They will carry out all of
the procedural steps, including the publication of Notices in the Jersey
Gazette, that lead up to the dégrèvement hearing,
which will be held 4-6 weeks after the renunciation is ordered. At this hearing
one of your creditors will become the legal owner of your immovable property.
You will no longer have any rights in relation to the property and can no
longer reside there. Should you refuse to leave, further eviction proceedings
will be commenced against you. Your other possessions or property apart from
land may also be disposed of.
When
the dégrèvement process has been
completed, you remain liable for any unpaid debts that existed before the
procedure with the exception of the debt owed to the creditor by which he, she
or it has become the legal owner of the immovable property, which debt will be
discharged (unlike in a désastre or a successful remise
de biens where the conclusion of the
procedure grants you a discharge from all your debts).
You are
urged to take legal advice on your position as soon as possible.
Yours
sincerely
[Applicant
creditors legal advisers]