Bailiff action against a company
When a company owes money, a creditor with a court judgment, or HMRC using its own powers, can instruct enforcement agents, still widely called bailiffs, to take control of company goods and sell them to clear the debt. Agents must usually give notice first, normally seven clear days, before they visit. Enforcement is a sign the debt has reached a serious stage, so it should prompt immediate advice. Taking Control of Goods Regulations 2013; gov.uk
- Who can act
- Enforcement agents with a judgment, or HMRC using its powers
- Notice
- Usually 7 clear days' notice before a visit
- Cannot take
- Essential trade tools below a value, hired or third-party goods
- What it signals
- The debt is at a serious, late stage. Take advice now
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What enforcement agents can and cannot do
The process is governed by the Taking Control of Goods rules. There are strict rules on what agents can take, when they can enter and the fees they can charge. They generally cannot take goods that are essential tools of the trade below a set value, items on hire purchase that the company does not own, or third-party property.
Enforcement comes late, so act fast
Bailiff action usually means a debt has already passed through demands and often a County Court Judgment or an HMRC enforcement notice. A formal procedure such as administration creates a moratorium that can stop enforcement, so this is the point to speak to a Licensed Insolvency Practitioner the same day about whether it would protect the company.
Common questions
Can bailiffs force entry to business premises?
For most company debts, enforcement agents can enter through usual means but face limits on forcing entry, and there are strict rules and fees. The detail depends on the debt type, so get advice quickly.
Can a formal procedure stop bailiffs?
An administration moratorium can halt most enforcement action, which is one reason directors under enforcement pressure should speak to a practitioner urgently.