Is it really worth removing rather than seizing?
by David Carter on 27 July 2011
Under the writ of Fi Fa, it is the duty of the High Court Enforcement Officer (HCEO) to seize goods and, if necessary, to sell them at auction (or by private treaty) to clear the debt. For the HCEO it is often a judgment call as to what individual items will raise at auction.
Some items are protected from seizure and removal. For example, the HCEO is not permitted to seize items that the debtor and their family need for a basic level of domestic life, nor may he seize tools of the trade. However, for items to be deemed tools of the trade, they must be used solely by the debtor for the purposes of his work. This exemption only applies to sole traders, and not to limited companies or partnerships.
Electronic equipment such as TVs, computers, DVD players or music systems often have little intrinsic value, as they fetch very little at auction. However, the much higher cost of replacement may well encourage the debtor to pay the debt instead.
For companies, their computers will also have little intrinsic value, but the interruption to business of having them seized and removed (especially if it takes them time to put back-up systems into action in order to access their data), can be considerable. We find the threat of removal and sale of computers generally secures payment from companies. The same applies to equipment and machinery belonging to limited companies and partnerships, where the seizure and removal would often disrupt the business.
Vehicles are often a valuable asset, worthy of seizure and sale. They are worth considerably more if the officer is also able to obtain the keys and log book (although copies of the log book can be obtained from the DVLA). The main issue with vehicles is whether they are still subject to finance, especially hire purchase, where the hire purchase company will retain title until paid in full.
High value items are also often seized, such as our recent seizure of a private jet, as well as jewellery, artwork, livestock, stocks, shares and money - just last month we seized silver bullion from a vault. Jewellery and artwork can be difficult to sell without proper provenance and the seizure of livestock entails a complex and extensive process to ensure the safety and well-being of the animals.
At The Sheriffs Office, we find that only 1% of cases results in the actual removal of items for sale. The threat of removing and selling seized goods is almost always enough, especially as this is backed by a High Court writ authorising the HCEO to seize and if necessary sell the goods. What is worth seizing often comes down more to the value placed by the debtor on the item, than its tangible value.
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Disclaimer: The statements and opinions expressed in this article are those of the author and do not necessarily reflect those of Sheriffs High Court Enforcement Ltd, trading as The Sheriffs Office. Sheriffs High Court Enforcement Ltd does not take any responsibility for the views of the author. The author will not be held responsible for any comments posted by visitors to this site. Please note that this article does not constitute legal advice. The author has used his best endeavours to make this article as accurate and complete as possible, but requests that the reader be aware that the law of England and Wales frequently changes. The author strongly advises the reader to take legal advice before embarking on any enforcement action.
