Walking possession orders are tools used by creditors to get debtors to pay an outstanding debt or county court judgments.
To obtain a walking possession order, a trade creditor must first get a judgment in the county court. They will then take action using a county court bailiff. Or they may enforce it via the High Court using a High Court enforcement officer (also called an HCEO; they used to be called High Court Sheriffs).
HRMC and commercial landlords can seize tenants' assets without first seeking a county court judgment in order to recover overdue taxes or rent, respectively (see our guide to the rights of commercial landlords and new changes to the law). These are the only two situations where notice and an appointed bailiff are not required (see changes to the distraint laws).
In all cases, the enforcement agent will need to gain peaceful entry to the premises and they do not need to physically remove the assets in order to seize them. In fact, the Lord Chancellor has stated that he prefers if the goods are left at the premises.
Instead of removing items, the enforcement agent does a walking possession order. Goods are only removed when the enforcement agent deems it necessary to safeguard them.
What happens when a walking possession order is issued?
When a walking possession order is issued, it provides an agreement between the enforcement agent and the debtor. It states that the goods have been possessed and that they will remain in the agent's custody until the debt and all costs have been paid.
Once a walking possession order is issued, debtors may not sell or remove the goods, nor may they let anyone else do so. If goods held under a walking possession order are sold, the enforcement agent can seize them from the purchaser, even if the purchaser was unaware of the situation.
If the enforcement agent seizes goods that do not belong to the debtor or are under a hire-purchase agreement, then the third party needs to provide evidence of this to reclaim the items from the walking possession order.
Once the walking possession order is signed, the enforcement agent will leave a copy with the debtor. The walking possession order also establishes permission for agents to re-enter at any time, as they may need to inspect or remove goods. The agreement also allows re-entry by force if necessary.
Do you have to sign the walking possession order?
If the debtor refuses to sign the walking possession order, the enforcement agent can obtain a signature from any responsible person at the premises.
If no one will sign it, then the enforcement officer will probably remove the goods to safeguard them, but they may require an indemnity from the claimant before doing so.
It is important to remember that enforcement officers do not want to remove goods; they simply want to get paid their commission for the successful collection of the debt.
To convince you to pay, they will try to put you under as much pressure as possible. Always remain calm and courteous and seek help from a professional who knows how to deal with walking possession orders.
4R: helping you avoid walking possession orders - and deal with them
At 4R Business Recovery, we provide reliable advice and assistance with all sorts of debt problems, including walking possession orders. We work closely with our clients to ensure that the best choices are made for the business and the stakeholders.
To find out more about how we can help you avoid walking possession orders, contact us today. We can also deal with county court bailiffs and High Court enforcement officers on your behalf to work out a satisfactory arrangement and halt any further action.