Received a High Court Writ? Your Questions Answered

In short:

• High Court writs are serious legal documents that require a prompt response.
• These writs give High Court enforcement officers the right to seize a company’s assets.
• Bailiffs can take vehicles, freeze accounts and more in an effort to recover a debt.

 

What is a High Court writ?

A High Court writ is a legal order issued by the High Court to pay a debt to a creditor. They are used to enforce county court judgments and potentially seize assets to cover a company’s commercial debt.

If a county court judgment is left unpaid, a High Court enforcement officer or bailiff will be issued a High Court writ that allows them to recover assets or money sufficient to cover the debt.

 

What are the powers of a High Court writ?

CCJs can be transferred to the High Court for enforcement if the debt is above £600. The resultant writ provides High Court enforcement officers the power to potentially seize a company’s assets, freeze an owner’s bank account, or even evict them from their premises.

 

Can I ignore a High Court writ?

Ignoring a High Court writ is a very bad idea.

A High Court writ usually contains a notice of enforcement which warns the recipient of the intention to seize goods after seven working days. This notice period provides businesses with extra time to settle the debt without having High Court enforcement officers involved.

Ignoring this warning can result in even more costs being added to the debt. Court costs and other additional fees can soon build up to an unmanageable amount.

I severe cases, completely ignoring all correspondence and contact can eventually lead to eviction from a property.

 

What happens if you can’t pay a High Court writ?

If you can’t pay a High Court writ, a High Court enforcement officer (HCEO) will be instructed to visit your business premises and seize assets to the amount that you owe, as well as any interest and additional fees that have been accrued.

Seized assets are then sold at auction in an attempt to cover the debt.

The HCEO can also request that your bank account be frozen, or take steps to issue a winding up petition against your business.

 

Can a bailiff force entry with a High Court writ?

When it comes to business premises, a bailiff can force entry if they’re collecting tax debts from HM Revenue and Customs. This has to be considered ‘reasonable force’ however, and doesn’t allow for the breaking down of doors or smashing of windows.

They can, instead, return with a locksmith and gain entry that way, though this isn’t something that happens particularly often. In most cases, there will still be opportunity to pay off the debt to avoid such action.

Usually, a bailiff can only force entry if they’ve been invited into the premises previously.

 

My business is registered at my home address. Will bailiffs visit my home?

Yes, bailiffs will attend whichever address is registered to the business. For commercial premises, bailiffs generally have no need to force entry as they’ll attend during trading hours.

Case manager at Forbes Burton, Emma Blyth, warns that this doesn’t mean that they only operate between the typical 9-5. “High Court enforcement officers will attend when the business is open. We’ve seen nightclub owners receive visits late into the night from bailiffs keen to enter the premises.

 

 

Can a bailiff take a car from my drive?

Yes. We have spoken to clients that have had vehicles taken from outside of their home before. In this scenario, the business owner has seven days to submit evidence that the vehicle in question does not belong to the business.

If the vehicle does belong to the business, however, then it is likely to be sold at auction along with any other assets to cover the debt.

Cars can also be taken from public roads or outside a work address. They may also be clamped instead of taken.

 

How long does a High Court writ last?

The writ issued is valid for 12 months, at which point, the creditor will need to renew it for another 12.

The notice of enforcement within the initial letter received is a notice that the business owner has seven days from the date of the letter to settle the debt before a bailiff visits.

 

Types of High Court writ

There are several types of writ that the High Court can produce. the following are the most common.

 

Writ of control

This is the type of writ most commonly seen in cases of business debt (though they can also be used against individuals too). This allows High Court enforcement officers to seize assets and sell them to raise funds against a debt.

 

Writ of possession

Similar to a writ of control, this allows enforcement officers to evict a tenant to take possession of a property.

 

Writ of restitution

Provides the legal powers to remove anybody who has returned to a property after being evicted previously.

 

Writ of delivery

This gives officers the right to recover specific items that are owned by creditors. This could be a vehicle, machinery, or any other high-value goods.

 

How much is a High Court writ?

It costs £80 regardless of which type of High Court writ is chosen. There can then be additional costs depending on the enforcement agency used. Extra charges can then be added if locksmiths, auctioneers, or storage facilities are needed.

Some of these fees can be added to the debt that is to be repaid. VAT on these charges, however, is usually charged to the creditor if they are VAT registered. Otherwise, it is charged to the debtor instead.

 

Does your business need extra finance?

Forbes Burton provide several different alternative financing options that help UK businesses to survive difficult times.

Whether it’s invoice factoring, bridging loans, or other financial products, we offer an array of solutions that can help you free up cash flow and pay off creditors.

Give one of our specialist advisers a ring now on  0800 975 0380, or email advice@forbesburton.com for a free consultation with zero obligation to see how we can help.