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The Insolvency Experts are specialists when it comes to dealing with business debt. We can provide advice and support on the best course of action for your company. If you are struggling with pressure from creditors and would like to speak to a member of our team, please contact us directly on 0300 303 8284.

Dealing with Creditor Pressure – Your Rights

At the Insolvency Experts, we understand how much of a burden it can be to deal with financial difficulties alone. It is crucial to know your rights when it comes to dealing with bailiffs and allowing them entry to your properties.

• How are bailiffs instructed?

Bailiffs can be instructed, once a judgement has been obtained, to confirm a liability is due. HMRC liabilities don’t require a CCJ and their enforcement officers can attend site following a demand for repayment.

• When do bailiffs have right of entry in respect of a CCJ?

Bailiffs chasing a liability related to non-criminal liabilities are not allowed to enter your property without your permission unless they do so by ‘peaceful entry’. This means that they can enter through an unlocked door or open window.

• Rent and HMRC Arrears

Since 2014, Commercial Rent Arrears Recovery (CRAR) is a new statutory procedure dictating how a Landlord can recover rent arrears from a commercial property. This now means that they have no automatic right of entry and have to give 7 days’ notice before gaining entry. HMRC Enforcement Officers do not have to provide any documentation before attending site to recover their liability however will only recover assets as a last resort. They are more likely to obtain Walking Possession over the company assets which, when signed by the Director, cannot be disposed of without their consent. Walking Possession can also be obtained by a bailiff in respect of a CCJ liability.

• What is a Walking Possession Order?

A Walking Possession Order consists of a list of goods that will be seized unless you repay the debt within a specific time period. You will not be allowed to remove those goods from the premises until the debt is repaid, and you will be charged an additional amount for each day that the debt remains outstanding.

• What happens to goods seized?

When goods are seized, these will then be sold via auction to recover the costs of the bailiff and then the original liability. Bailiffs cannot remove goods that belong to a third party however if no proof of ownership exists, they may choose to remove the goods until ownership can be clarified.

• What can be done if a Bailiff attends site?

There is no good news. If a bailiff attends your business and gains entry, there is very little that can be done. That is why it is important to seek advice should the threat of bailiff action exist. We at The Insolvency Experts can negotiate with creditors on the Company’s behalf and try to ‘head off’ any danger or asset removal. If you would like any more information regarding the rights of bailiffs, you can find out more online.

Contact the Insolvency Experts

For business debt advice or support, contact our team today. You can an adviser directly on 0300 303 8284 or contact us online.