High Court Writs are legal orders made by the court. Landlords sometimes use Writs of Possession to evict tenants, for example, but High Court Writs of Control are widely used by creditors to enforce County Court Judgments (CCJs).
High Court Writs of Control allow High Court Enforcement Officers (HCEOs) to collect an unpaid debt by seizing assets from the debtor’s commercial premises, and selling the goods at auction.
If a business receives this type of Writ it means that HCEOs can force entry to the commercial premises under certain conditions. This is why it’s important to seek professional insolvency assistance as soon as possible.
Speed is of the essence if the High Court has issued a Writ of Control against your company, as you only have seven days in which to act. So what are the effects on a business of a High Court Writ of Control, and can you prevent the seizure of goods?
High Court Writs are noted on the Registry Trust for six years, and this negatively affects a business’ ability to obtain borrowing. The total value of seized goods may also exceed the original debt.
This is partly to cover enforcement officer fees, but also because the return from individual goods sold at auction is generally lower than their true value. It’s also worth noting that a High Court Writ of Control typically remains valid for 12 months.
Repaying the total outstanding debt is the ideal outcome, but your business may not be in a position to do so. If you can pay off the debt within the seven-day timescale, the Writ will no longer be valid.
Your creditor(s) may be open to negotiating an instalment plan for repayment of the debt. As long as you keep up the payments, the High Court Enforcement Officers should take no further action.
If you have good reason, you can apply for a Stay of Execution. This would give you more time to prepare your defence, so what are the common reasons for making this type of application?
To apply for a Stay of Execution you should send the £100 fee with Form N244,¹ which is downloadable from the government website. You’ll also need to provide written evidence or a witness statement in support of your application.
It’s important to ensure that you have genuine reasons to make this type of application, however, and be able to provide the required supporting documentation
You may be able to source an alternative form of finance that frees up working capital so you can repay the debt. One such example is invoice finance, which leverages the value of your sales ledger to provide advances on unpaid invoices.
UK Liquidators can help if you’ve been served a High Court Writ of Control. We’ll provide the professional guidance you need, and present all your options going forward. If liquidation is the ultimate outcome, however, it’s essential to be proactive rather than wait for your creditor to forcibly close down the insolvent business.
Please contact our licensed insolvency practitioners to find out more – we offer free, same-day consultations to quickly provide the information you need.
If you are considering liquidation for your limited company, taking advice from a licensed insolvency practitioner can help you understand your options.
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If you are considering liquidation for your company, taking expert advice at an early stage is crucial. At UK Liquidators, our team of licensed insolvency practitioners are committed to providing limited company directors with the help and advice they need to make an informed decision.
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