Walking possession order

[Lizzy]

A bailiff has put a walking possession on one of my husbands machines at work. The company is a limited company but my husband owns all the machines on a personal basis. He allowed this to happen because he panicked and also agreed to make payments way beyond his means.

 

The question is, can they still take the machine even though he can prove he owns it ?

Also if they can't take the machine and they have nothing left to levy on can they close the factory?

 

Any advice would be greatly appreciated.

 

Many thanks

[Seminole]

If he can prove that he owns it personally, then it should be difficult for them to take it but expect them to try. He will need to produce an original receipt and I wouldn't be surprised if they took it away and argued about it later, I'm afraid.

 

You could try contacting these guys:

 

http://www.guide-information.org.uk/search_index_detail.lasso?RecID=G4574

 

but I don't know what they're like.

[diddled]

I may be wrong, but I always thought that Bailiffs were not allowed to take someones tools of their trade

[davemanik]

I may be wrong, but I always thought that Bailiffs were not allowed to take someones tools of their trade

 

that is true.

 

work related tools and also family items etc.

[Seminole]

The argument here is about ownership. If the asset doesn't belong to the company then the bailiff should not be able to take it. However, I wouldn't bet that there isn't some case law somewhere which "lifts the corporate veil" in a situation like this. However, the argument about ownership if backed up with a receipt should satisfy the bailiff.

 

The argument about tools of the trade would only apply to an individual or potentially a partnership.

[jonni2bad]

I may be wrong, but I always thought that Bailiffs were not allowed to take someones tools of their trade

 

Are there any goods that the bailiff cannot seize?

Bailiffs (except bailiffs acting on behalf of the magistrate's court - see below) cannot seize the following goods:

• tools, goods, vehicles and other items of equipment necessary for use by you in your employment, business or vocation;
  
• clothing, bedding, furniture, household equipment and provisions as are necessary for satisfying the basic domestic needs of you and your family

SEEN HERE

[Lizzy]

I see so as a LIMITED COMPANY they could take the lot. But as he owns all the machines on a personal basis they can't take them, even though he signed the form but can prove he owns them.

 

The other question is. If there is nothing left for them to take can they close the factory. The debt is not for rent arrears. ?

 

Thanks for everyones help so far. It's a complicated business.............

 

The argument here is about ownership. If the asset doesn't belong to the company then the bailiff should not be able to take it. However, I wouldn't bet that there isn't some case law somewhere which "lifts the corporate veil" in a situation like this. However, the argument about ownership if backed up with a receipt should satisfy the bailiff chimp.

 

The argument about tools of the trade would only apply to an individual or potentially a partnership.

 

[Seminole]

I see so as a LIMITED COMPANY they could take the lot. But as he owns all the machines on a personal basis they can't take them, even though he signed the form but can prove he owns them.

 

The other question is. If there is nothing left for them to take can they close the factory. The debt is not for rent arrears. ?

 

Thanks for everyones help so far. It's a complicated business.............

 

 

 

 

I don't know the answer to that I'm afraid. I know of one instance where a VAT bailiff was denied access to a business premises by the owner. The owner put a padlock on the door so that the bailiff couldn't get in. The bailiff responded by putting a bigger padlock on the door so that the owner couldn't get in! I don't know whether it would be legal for a bailiff to do something similar for a non-tax debt but I think that this is the only way he could close down the operation.

[diddled]

I imagine that the only way the business could be closed down for non-payment would be by a winding-up petition issued by the creditor in question

[Guest Alison82]

Just came across this

 

 

Warrant of execution

A warrant of execution gives court bailiffs the authority to take goods from the defendant's home or business. Bailiffs will try to either:

 

collect the money you are owed; or

take goods to sell at auction.

You cannot ask the county court to issue a warrant if the amount you want the bailiff to collect is more than £5,000, unless you are enforcing an agreement made under the Consumer Credit Act 1974. (This is because regulated agreements can only be enforced in the county court.) But you can ask the sheriff's officer (through the High Court) to try to collect the money you are owed or to remove goods. The staff at any county court will be able to tell you what you need to do.

 

Bailiffs cannot always remove and sell the defendant's goods. For example, they cannot remove essential household items and tradesman's tools or goods subject to hire purchase or rental agreements.

[Lizzy]

UPDATE.

 

Hubby faxed though ownership details of the machine to the debt collection agency. As they had nothing to take they said they would give their client this information and see what they wanted to do.

 

They can either

 

Write off the debt

 

Take the COMPANY to court to fill out a form stating company assets etc to see if its worth bothering to bankrupt to get their money back.

 

Issue a winding up order.

 

Its been a few weeks now and not heard anything yet........Im sure it won't go away as seems the debt is now owned by a BANK. The will just do their worst because they can.

 

Not worried too much as the business can still trade. Our major concern was that they could close the factory. I think that can only happen if the debt is for rent.

[meagain]

• clothing, bedding, furniture, household equipment and provisions as are necessary for satisfying the basic domestic needs of you and your family

 

So, does that mean all those times you hear of people being left with their house entirely empty (on five-figure debts), the bailiffs have acted illegally?

[jonni2bad]

Illegally or unlawfully, one of them....

[Lizzy]

This is a LIMITED COMPANY debt. This means the debt is limited to what the company owes/owns. My husband owns the machines on a personal basis like we own the tv, settee, cooker etc. The LIMITED COMPANY owns nothing.

 

The bailiff can take a persons personal things if the person owes the debt thats why they can enter a house to take things.

 

If the LIMITED COMPANY had owned the machines, vehicles etc they could have been taken.

 

Complicated I know. Having a limited company protects the owner from losing their home in the case of a major debt.

[Lizzy]

This topic was closed on 09 March 2019.

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