Debt recovery update: Enforcement of Judgement
Some debtors, and occasionally their solicitors, believe that High Court enforcement of judgement against a limited liability company cannot be executed at a home address.
I can confirm that this is not the case. Enforcement of judgement can and regularly does take place under these circumstances by Sherriff Officers, often with high success.
The Sherriff’s Office has confirmed the following:
“HCEOs can enforce against a limited company that is based in a home office. If the enforcement officer believes assets belong to the company, he can seize them and the debtor will have five days to prove personal ownership”.
In our experience, usually assets belonging to the company will be found at the address and are available for seizure. These often include home office equipment (computers and printers etc.), tools and machinery and company vehicles.
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Further, you may recall from previous articles that a limited company cannot claim these goods are exempt from seizure by being ‘tools of the trade’ either, aiding enforcement of judgement accordingly.
If goods of the debtor are in a building not attached to the residence then the Enforcement Officer may force entry (usually using a locksmith) if instructed to do so.
In the majority of cases, we find the seizure, threat of removal and the potential disruption to the business encourages the debtor to make payment, even though in reality the goods seized may not be of a high enough value at auction to clear the debt in full.
We have the in-depth expertise to advise you on the most appropriate, efficient and cost effective strategic judgement enforcement method for your particular debt.
Do remember though, in the long term the best approach is fast action on late payments. A letter before action from a debt recovery solicitor is often enough to encourage most debtors to pay, avoiding County Court Judgements and enforcement of judgement. We help business owners across Essex to receive payment in full without the need to take further legal action.
DEBT RECOVERY LETTER
Interested to find out more? Look at our recommended reads –
Suing a limited company and enforcing judgment; read more on the High Sherriff’s website >>
10 important things to do to make sure you get paid; discover more in our popular TM Law blog >>
About TM Law – Specialist Debt Recovery Solicitors
Based in Hockley, Essex, TM Law is a small and dedicated solicitors. With many years’ experience, helping business owners and local individuals with matters of personal injury, compromise agreements, employment disputes, debt collection, commercial disputes and much more.
As a specialist debt recovery solicitors, TM Laws’ knowledge of the debt recovery system available to recover money is second to none, and their approach is proven to achieve maximum recovery for minimum outlay on behalf of local business.
We offer a debt recovery letter for just £20+vat and provide wider debt recovery services for a fair, fixed fee.
For a personal service, practical advice and quick recovery of your money contact us today >>