what is a high court writ

When it comes to the world of business, there are many elements to think about. In this blog, we’re answering the question, what is a High Court Writ?

What is a High Court Writ?

A High Court Writ is a very important legal document which should not be ignored. This legal document can be referred to as a High Court Writ or a High Court Writ of Control. These are the same.

A High Court Writ is used to transfer a CCJ to the High Court, which opens it up to higher powers. After this has been issued, the High Court Enforcement Officers will have the ability to enter your business premises and may seize assets to generate money for creditors.

Before the High Court Enforcement Officer begins the process of seizing assets, they will try to agree on a payment plan with you. You must not agree to the payment plan if you cannot stick to it. Otherwise, you will risk further issues, such as having assets taken from the premises.

What is a CCJ?

A CCJ is a County Court Judgment which can be used against directors or their companies if they fail to repay the money they owe. Having a CCJ against you can cause issues and can make it more difficult for directors.

A CCJ may come as a last resort when a creditor is trying to retrieve their money. This means that they must have issued warnings and other aspects before a CCJ can be used. One of these will be a letter warning you about the CCJ, which will usually give you 30 days to pay back the money.

If you fail to pay this money, you will be given a default notice, followed by a CCJ. If payment is not made after the CCJ (County Court Judgment) is issued, then a High Court Writ may be issued.

Who issues a High Court Writ?

High court judgements are initiated by unpaid creditors, but they can only be issued by the High Court themselves. These High Court Writs can last for 12 months at one time, but creditors can renew these. This will start the process again with the High Court Enforcement Officer.

What is the High Court Writ enforcement process?

Once the writ has been issued, the enforcement officers will visit your business premises. This will be initiated with a Notice of Enforcement, and from this point, directors have seven days to try and sort the issues.

Enforcement officers can visit the premises if no contact is made within seven days. If you cannot agree on a payment plan or other arrangements, the enforcement agent may begin seizing your business’s assets to make up the money owed.

If the company’s assets are set to be sold by the enforcement agents, they will be placed under a Controlled Goods Agreement, which means you cannot sell or remove the assets from the premises.

Can you stop a High Court Writ?

A High Court Writ is a very serious legal document that should not be ignored. Instead, it’s very important that you act quickly and are honest about your circumstances. There are some instances where you might be able to stop the process of a High Court Writ. However, you must seek professional advice on this.

Failing to seek advice from a qualified professional could lead to much more serious issues for your business to deal with.

Pay the debt

This may be easier said than done, but if you do have the money, then now is your last chance to pay the debt back. If you continue to not pay the debt, your company may end up being wound up and closed. This will not be the most preferable outcome for you as it reflects poorly on you as the director, as you have not had your creditors’ interests in mind, therefore, failing on your director responsibilities.

company high court writ

Consider a Stay of Execution

A Stay of Execution can be used if you can prove a few criteria. These can include the following.

  • You do not owe the debt
  • You did not know that the judgment was in place
  • Incorrect methods have been used to try and gain the money from you

You must be able to provide strong evidence to back up your claims for a Stay of Execution.

Payment plan

Many creditors will be more helpful if you are honest with them about your financial situation. If you are honest and admit that you cannot pay the money when it is due, then they may be willing to organise a payment plan for you. This will likely lead to paying in instalments at certain times, such as once a month.

If you continue to make these payments on time, enforcement officers won’t take further action against you. However, if you fail to keep up with the plan, you will face further consequences.

Consider other finance options

We know how challenging it can be when your company is struggling financially. The best thing you can do is face your problems upfront rather than burying your head in the sand. Consider taking an in-depth look into your finances and assessing where money could be made back. This may include chasing your customers for money they owe your company or selling company assets.

Be wary of selling your company assets. To avoid issues, you will need to ensure that they are sold at market value and that you retain all paperwork and invoices regarding the sales. You may be asked for proof of this further down the line, so it’s good to be prepared.

Consider other options for the company

There are a few options that you could consider for your company. A CVA (Company Voluntary Arrangement) is a popular option that can allow you to pay back your creditors over a certain period of time.

CVAs are not appropriate for every business, so it’s crucial that you seek professional advice before entering into one.

Please be aware that you may not be able to use these options, as it completely depends on your personal circumstances and financial situation. You should always seek advice from a qualified professional before making any changes. You must also ensure that they have checked all aspects of your company’s debts. The last thing you want is to find that you are personally liable for debts later down the line.

As the director, you may be required to also pay the court fee, enforcement officer fees and additional costs.

We hope this blog has been helpful regarding High Court Enforcement Officers, County Court Judgments and a Writ of Control. At 1st Business Rescue, we’re here to support you with all aspects of your business.

We can offer honest, confidential advice to help you make the most suitable decisions for your business. Please don’t hesitate to contact us if you have any questions, and we will be more than happy to help.

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