What Exactly Is A ‘Writ Of Control’, And How Do You Use It?

So you’ve been chasing a debt for a while, and you ended up taking your client to court because they refused to pay. The court decided in your favour, and you obtained a county Court Judgment against them. They may have even agreed to a payment plan. But when it comes time to pay their first agreed amount, you still receive nothing from them.

It can be incredibly frustrating for business owners who just want to be paid for the services they provided. That’s why there’s another step you can take beyond obtaining a CCJ. It’s called a Writ of Control, and it can be an incredibly useful tool in enforcing the judgment of the courts.

What Is A Writ Of Control?

A Writ of Control is another type of court order. It’s issued by the High Court and gives you, as the creditor, the power to employ High Court Enforcement Officers – HCEO for short. These officers can seize and sell the debtor’s assets in order to settle the outstanding debt, as per the CCJ. It’s a common method of enforcing CCJs against uncooperative debtors, known as ‘execution against goods’.

You can use a Writ of Control to enforce most CCJs, but there are some rules you need to be aware of. First, the amount outstanding in the CCJ must be £600 or above. Second, you cannot use a Writ of Control to enforce a CCJ against any business that is regulated by the Consumer Credit Act 1974 – for example car loans or credit card debt.  This kind of debt can only be enforced by County Court bailiffs.

How Does a Writ Of Control Work?

Once you have instructed the HCEO, the first thing they will do is send a Notice of Enforcement to the debtor. This notice is a legal requirement and gives the debtor advance warning of what action will be taken and by when they need to pay in order to avoid such action. This is known as the compliance period.

The HCEO will then visit the debtors address to obtain payment or to review and assess what goods are at the debtor’s address. After assessment, they will be able to seize control of the relevant goods if payment is not made. There are a few limitations to what they can take and there are certain things they will prioritise, which we’ll go into in the next section.

Once the goods are under the HCEO’s control, the debtor can’t sell or transfer those goods to a third party until they have paid the amount owed. If, after this action, the debtor still fails to settle their debt,  the HCEO has the power to remove and sell those goods to pay the outstanding balance. In some cases, selling the goods might not raise enough money to settle the debt in full. If this happens, the HCEO will visit the premises again to review if they have any other assets that can be sold.

What Goods Can Be Seized From The Debtor?

‘Goods’ feels like a fuzzy term, so let’s look at what it actually means. Within their power, the HCEO can only take goods that are proven to be owned by the debtor. This includes things like vehicles, cash, jewellery, art and livestock, and these are often the items that will be targeted first as they are easiest to sell with the highest resale value.

As we mentioned earlier there are some things they are not allowed to seize. This includes:

• Tools of the trade with a value under £1,350
• Household items needed to satisfy basic needs (white goods etc.)
• Anything that is being paid for via finance agreement (e.g., a lease car)

As long as the HCEO stays within these rules, they can claim control of any items owned by the debtor. This is an important distinction when it comes to limited companies, as the HCEO cannot seize anything that is owned by the directors personally if the company is the debtor. They are separate legal entities, so the HCEO is limited to seizing company-owned assets.

How Long Does A Writ Of Control Last?

A Writ of Control lasts 12 months from the date it’s issued. Usually this is enough time to execute and reclaim the money you are owed. But if it isn’t, you can apply to extend it for a further 12 months. You can only do this once, and you will need to explain to the court why you need the extension, and why you haven’t been able to take control of the goods during the initial 12-month period. This can be tricky, and ultimately the court will decide if this is reasonable, or if you have had enough time, in which case they may refuse the extension.

Taking legal action against your customers is a big step, and it can be daunting for many business owners. And because it’s such a serious step, it’s important to ensure that everything is done correctly to have the best possible chance of getting a positive result as quickly as possible. After all, no one enjoys long, drawn-out legal battles!

At Debtcol we have extensive experience in all aspects of debt collection, from the very first chasing email to providing you with the evidence and advice you need for legal proceedings. If you have any questions about the debt collection process, or would just like to know more, just get in touch with the team today to book your free consultation.