High Court Enforcement Officers (HCEOs) are similar to bailiffs, however, their main job is to enforce judgments that were made by the high court. They do have the right to enforce County Court Judgements too, although this is not their primary role. HCEOs work in England and Wales, and pursue debts through the use of controlled goods orders. They are permitted to seize assets under the Taking Control of Goods Regulations, 2013.
HCEOs are given authorization via a Writ of Control issued by the High Court when a debtor fails to pay their debts. This writ gives the right of entry during the enforcement process. Many people conflate HCEOs with bailiffs because they do similar jobs. There are some important differences in the level of authority they have.
When Might a HCEO Be Used?
Who can use court enforcement services? An HCEO could be called upon to enforce a court judgement, at either the High Court or County Court level, if the debt is not covered by the Consumer Credit Act and the amount owing is £600 or more. The debt must still be outstanding and other reasonable action must have been taken to recover it.
If the judgement was made in the High Court, the creditor has the right to seek a Writ of Control straight away, as long as the debtor has not applied for a stay of execution. This is a common way for business creditors to operate, and the courts will ask the creditor to explain why they’re seeking a Writ of Control at this stage. The court will often accept an application simply because the debt is large.
If you are in a position where a creditor is pursuing you for an unpaid judgement, the first thing to do is learn about how the process works, so you fully understand the options an HCEO has available to them when they visit your property to enforce the judgement.
What Rights Does a High Court Enforcement Officer Have?
An HCE has the right to take control of any goods or assets belonging to the business, up to the value of the judgement. They may also take additional goods or assets to cover any associated court costs, interest on the debt, or the costs of enforcing the judgement.
Before visiting the property, the HCEO must give seven days notice. You will be given the opportunity to pay the debt or make a payment plan. If you do not do this, the HCEO can immediately take control of goods, so they can be sold at auction, or, with the permission of the courts, to a private seller.
In most cases, the HCEO will not immediately take goods, but rather do an inventory of your assets and offer the opportunity for you to enter into a controlled goods agreement. If you make payments on time, you will be able to keep your assets. Should you default on the agreement, the HCEO can return and seize the goods at that point to cover the debts.
Can HCEOs Force Entry Into a Property?
HCEOs cannot force their way into a residential property unless they have been given access to the property in the past. However, they do have the right of entry when it comes to business premises.
They must give seven days’ notice before visity, and they must properly secure the premises before leaving. There are strict codes of conduct that High Court Enforcement Officers must abide by, and the “Taking Control of Goods” national standards require that enforcement officers do not misrepresent their rights and powers.
While the standards require bailiffs and enforcement officers to act in an honest and ethical manner, it’s still useful for debtors to know their rights because some debt collectors misrepresent the abilities of their private agents, and not all HCEOs behave appropriately. Seeing professional advice can help debtors ensure they are treated fairly throughout the enforcement process.
What Can an HCEO Seize?
If the debt is owed by a limited company, HCEOs are only permitted to seize the company’s property. Anything owned by the directors is off-limits. With sole traders, this is not the case. The business is not a separate legal entity, and the individual is liable for the business’ debts.
However, there are some things that cannot be seized. For example, an HCEO will allow a business or individual to keep tools of the trade up to a value of £1,350, so they can continue their work. They may take any tools above this value.
They will also leave any goods that belong to third parties, although the debtor will be asked to provide evidence of this, such as a receipt or a credit agreement. If you cannot provide proof, you can make a statutory declaration that the goods belong to someone else. Hired or leased goods cannot be taken, nor can perishable goods.
Things that are usually seized via an enforcement order include:
– Vehicles owned by the business
– Machinery or equipment
– Business furniture
– Non-perishable stock