Section 5 – Judgments for qualifying debts etc
27.Section 5 reduces the value of judgments and arbitration awards relating to debts to which the Act applies. It applies to judgments given in the UK before commencement of the Act, so that such judgments may be enforced only for the reduced amount. Section 5 also applies to the enforcement of awards and foreign judgments in the UK, and those awards and judgments may only be enforced for the reduced amount.
28.Subsection (6) has the effect of ensuring that a creditor that has compromised a claim is not disadvantaged, as with section 3(3) and (4).