Levying Execution

Generally, the Bailiff will be acting as a result of a Court Judgment obtained

There are some notable exceptions and these are dealt with below.

Surprisingly often, clients claim that they did not know of any proceedings, until the Bailiff knocks on the door. Frequently, the clients have recently moved offices and their Registered Office is still at their old address. The Registered Office is that address, at which proceedings against a Limited Company must be served. Nevertheless, one would have thought that the usual Post Office mail redirection would have brought the proceedings to the attention of the client.

Proceedings served at the Registered Office are deemed to have been duly served. A Court timetable starts running on that basis. Sometimes the Registered Office is at the client's accountants. Regrettably, the system for dealing with such important documents served is sometimes haphazard.

It is not easy, or cheap, to get a Judgment set aside. You have to prove how the Judgment came to be entered in default and show that you have a defence on the merits. It can cost some £2,000-3,000 for a contested hearing just to give you the chance to defend properly. In other cases, the Judgment will be a result of an adverse result in Court proceedings.

The Bailiff, armed with the appropriate documentation, is entitled to remove stock, furniture, and equipment from your premises. He will not usually attend with a lorry and sufficient labour to physically remove them. He will get you to sign a "Walking Possession Agreement". This lists the items that he has found in your premises. By signing, you agree not to remove them from the premises. To do so is a contempt of Court.

If Third Parties own any goods on the premises, point this out to the Bailiff and get the Third Party to write to him claiming those goods. The Bailiff may issue "Interpleader" proceedings, by which the ownership of those items is decided by the Court.

The Bailiff should list all the items individually with sufficient detail to identify them. Very often he does not. If you want to know exactly which items are affected, point this out to him. If you wish to reserve an argument for a later visit, let him describe things generally. He will want to go back to the Judgment Creditor with some sort of result. Offer him a deal. Give him some cash, or a bankers draft, or (if it is the first visit) a cheque and offer to pay the rest by instalments. Remember his job is to collect the money for the Judgment Creditor and his fees. He knows that putting you out of business will not achieve this and that the net sale proceeds (after expenses of removal and auction) might be very small.

Exceptions

A landlord of commercial premises can send in the Bailiffs for rent due without a Court Judgment. The Inland Revenue and Customs & Excise can do the same for the relevant tax owed.

Generally

The process is sometimes described as "levying distress". You may well be both stressed and distressed. Call us.

Related topics you may find useful:

Bankruptcy
Personal insolvency

Call Michael Breeze on 07900 195 195 or call 0845 270 2511 to set up an appointment