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What can a bailiff legally take from my business premises?

Bailiffs and enforcement officers are appointed by a creditor to recover money that they are owed by a person or a business. A creditor will usually already have tried to recover the debt without success before employing the service of a bailiff or enforcement officer to collect the debt on their behalf.

In the event of business debt, bailiffs do have the authority to take control of goods relating to your business which can be sold at auction to try to recover the amount owing to the creditor in question.

There are different types of debt collectors with varying powers so dependent on who collects the debt from you will depend on what they can take from you. However, there are some standard things you should be aware of in case a debt collector ever turns up at your business premises.

What is likely to happen?

On their first visit, bailiffs will try to establish whether you can afford to pay the debt or not. They prefer to accept payment from you rather than goods to be sold at a later date.

However on their first visit, as preparation in case the debt isn’t repaid, they are also likely to take a full inventory of the assets they would be allowed to sell. Assets that can be easily removed tend to be considered first as payment before looking into taking larger items of property which can be costly for bailiffs to remove.

If you don’t or can’t afford to pay straight away then assets will be secured at the business premises by the bailiff until they come to collect and you cannot sell or remove the assets from the premises.

If you can’t afford to pay all the debt at once, bailiffs may allow you to pay in instalments and you may be able to continue to use your assets during this time so your business can keep running. However, if you miss repayments of the debt then assets totalling the debt value will be taken as payment instead.

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What can a bailiff take?

Bailiffs can only take certain items from your business when they take assets as a form of payment.

For a limited company, only items that belong to the company can be taken as the company is a separate legal entity from the directors who run it so their personal assets will not be affected.

From a limited company, a bailiff can take:

  • Money
  • Stock and work in progress (if they think there is value in it)
  • Office equipment
  • Machinery
  • Vehicles belonging to the company

For sole traders, business debts are treated as personal debts therefore there is less distinction between business assets and personal assets that can be taken by a bailiff. Bailiffs can also take things belonging to you personally or jointly owned between you and a partner or another person (although are only entitled to use your share of the asset).

From sole traders, a bailiff can take such as:

  • Cash or cheques
  • Games consoles
  • Cars
  • Computers and tools worth over £1,350

What can’t a bailiff take?

From a limited company, bailiffs cannot take:

  • Any goods they are leased or on a hire purchase agreement
  • Property which is being rented
  • Items that are not owned by the company (you are likely to need evidence to prove this)
  • Assets essential to the business, such as tools up to the value of £1,350
  • Vehicles showing a disabled badge

For sole traders, bailiffs cannot take:

  • Any items which are being leased or are subject to a hire purchase agreement
  • Property which is being rented
  • Any items which belong to someone else or a child
  • Basic domestic items such as a washing machine or cooker
  • Any assets used for work purposes under the value of £1,350

Can a bailiff force entry into the business premises?

Certain types of bailiffs can force entry into a business premises but bailiffs are never allowed to force entry into a premises if the address they are attending is residential. They can only forcefully enter a residential premises if they have previously entered or they are there to evict you from your premises.

However, in most situations, bailiffs will not break into a business premises as their aim is to speak to the company director to ensure that they are aware of the debt and assess their affordability for repaying the debt. On the majority of occasions, if a bailiff cannot enter a property and the director is not in, they will return another day in business hours to try to speak to the director in person.

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