CRAR Notice of Enforcement / Binding

 

Background

When a warrant is issued, a Notice of Enforcement is sent by the Enforcement Agent (Bailiff) to the debtor / defendant to advise them that recovery action is to be taken.

The Notice of Enforcement acts as more than simply a warning letter. The issue of that notice binds the goods of a debtor to prevent them disposing or selling them until the matter is settled.

CRAR Notice of Enforcement / Binding

Tribunals, Courts and Enforcement Act 2007 Schedule 12 Part 2 para 4 says:

“For the purposes of any enforcement power, the property in all goods of the debtor, except goods that are exempt goods for the purposes of this Schedule or are protected under any other enactment, becomes bound in accordance with this paragraph.”

Para 5 says:

“An assignment or transfer of any interest of the debtor's in goods while the property in them is bound for the purposes of an enforcement power—

  1. is subject to that power, and
  2. does not affect the operation of this Schedule in relation to the goods, except as provided by paragraph 61 (application to assignee or transferee).”

The Problem

One of the complaints I hear about CRAR compared to the old Distress for Rent rules is that Distress was instant and CRAR requires the Notice to be served first.

The CRAR Notice of Enforcement could of course give the debtor chance to hide away anything worth seizing, even though they should not do so.

How can you guard against this?

The Solution

Although in my experience this rarely happens, if you do suspect that your debtor may do this there is an alternative that usually works.

Instruct Enforcement Bailiffs Ltd to attend the property to serve the Notice of Enforcement.

At the same time the Enforcement Agent (Bailiff) will

  • make the debtor aware that the notice binds the goods of the debtor to prevent them disposing or selling them until the matter is settled
  • search for goods and list and photograph them for identification if needed later

The law says under Tribunals, Courts and Enforcement Act 2007 Schedule 12 Part 2

“Entry without warrant

p14(1) An enforcement agent may enter relevant premises to search for and take control of goods.”

The Act does not say the case has to be at enforcement stage for this to apply.

Consequently there is nothing to stop an Enforcement Agent (Bailiff) attending on day one to search and list the goods of a debtor tenant. Whilst doing this visit they serve the notice of Enforcement by hand which shortens taking control time down to 7 days.

This has the clear advantage of being able to gather intelligence on assets, and having a greater impact on the debtor tenant than something coming by post or email.

Attendance at the property can be undertaken from as little as £75. A number of our London commercial landlords have been taking advantage of this additional service to our Commercial Rent Arrears Recovery Service CRAR.

We can help

Enforcement Bailiffs Ltd has over twenty five years of experience in the execution of warrants especially in the commercial rent sector.

London & South
0208 090 2439
Midlands & Wales
01733 306 462
Northern England
01325 526 127

read more crar news articles