Understand the rights of bailiffs and what they can take

What can a bailiff take from my home or workplace?

Bailiffs have the authority to seize assets from your workplace to satisfy the debt being recovered. 

For limited company directors, they can only take property from the business premises that belongs to the company. However, if you are a sole trader, business debts are treated similarly to personal debts, allowing bailiffs to seize assets from your home.

 

The Legal Authority of Bailiffs to Seize Assets from Homes and Workplaces

Enforcement officers, commonly referred to as bailiffs, can be assigned by your creditor to retrieve the money you owe. If the debt cannot be settled in full, the bailiff has the right to seize and sell goods to recover the owed amount. However, they must possess proper authorisation, such as a Writ of Control or a Warrant of Execution. The goods they take control of should generate sufficient funds to cover the debt, including any accrued interest and the bailiff’s fees. Typically, your goods will be sold at auction.

 

The Legal Jurisdiction and Powers of Bailiffs

On the first visit, the bailiff may not immediately seize your goods. Their primary goal is to prompt you to settle your debt. It’s more convenient for them if you pay the money, whether in full or in instalments, rather than proceeding with the seizure and sale of your goods. During the initial visit, they might survey your home or premises and compile a list of assets they believe, when auctioned, will cover the debt’s value.

It’s essential to note that this list can include items outside your home or premises that belong to you or the business, such as a car. Once on this list, these items become controlled goods, prohibiting you from selling, removing, or giving them away. Instead of taking the controlled goods immediately, the bailiff may secure them at your property, or you might continue using them under a Controlled Goods Agreement while paying off the debt. However, missing payments could lead to the bailiff returning to take away those goods.

 

Read More: 

• Antecedent Transactions – A complete guide for company directors
• Sole Trader Insolvency: What happens to me and my business
• What is a Seized Goods Letter
• Director Duties and Responsibilities When Insolvent
• What is a High Court Enforcement Officer and what rights do they have

 

Are bailiffs regulated?

There are regulations outlining what a bailiff can and cannot seize from your home or business premises. For sole traders, business debts are treated similarly to personal debts. From your home, bailiffs can take items that belong to you, jointly-owned items, and any cash or monetary items like bonds or pawn tickets. However, they cannot seize leased or hire-purchase items, items owned by someone else, or items belonging to a child.

Certain exemptions exist, including items essential for basic domestic needs like a cooker, washing machine, or furniture. Non-essential items such as a dishwasher or a games console can be taken. Items used personally for work, study, or education, such as books, tools, and computers, are also exempt, but only up to a value of £1350.
For a limited company, bailiffs can only seize items that belong to the company, excluding goods under lease or hire-purchase. As a limited company is a distinct legal entity, a director won’t be pursued personally unless they have signed personal guarantees. Bailiffs can take money, stock, office equipment, or machinery. This can be detrimental to a company and may lead to closure, so prompt action to settle the debt or seek professional advice is crucial upon receiving notice from a bailiff.