PROTECTING ASSETS.....HOW PROTECTED ARE YOUR COMPANIES?

Worryingly the majority of the companies that we visit do not have the correct protection in place for their assets. They may have taken advice from their accountant or simply believe that a Directors Loan offers all the protection they need. What they don’t realize is that if the company closes (or is forced to close) the Directors Loan would not receive any preference over any other creditor.

Tenable Solutions Limited offers a proactive approach to protecting company assets; this can be done at any stage of business and guards against any action that may be taken. As companies tighten their belts to ride the financial storm, they are thinking of effective ways to collect their debts. This means that more companies are being issued with County Court Judgements (CCJs); these may be justified or may be part of a dispute. Even if the action taken is a dispute assets can be placed in jeopardy – protecting them correctly ensures that they cannot be taken.

Imagine the quandary if a bailiff walked into your premises today (if you premises are solely commercial they can enter without permission) – what could they take? In 99.5% of the cases they can take anything. There is a grey area in bailiff law which covers tools of the trade; it is a little known fact that when bailiffs refer to tools of the trade it only refers to one set. Therefore if for example the debtor runs a large hairdressers employing several hairdressers the bailiff only need leave one pair of scissors, one hairdryer, one set of combs etc. This was an amendment to the 1981 Supreme Court Act in 1996. It states:-

“Section 138(3a)(a)(i) such tools, books, vehicles and other items of equipment as are necessary to that person for use personally by him in his employment, business or vocation”

Imagine how that could ruin the livelihood of a business; it could be costly and time consuming to purchase new “tools” in a short space of time.

Some companies we have visited have illegally protected assets, they have done this with information they have retrieved from the internet. Luckily, we have now ensured that they are protected within the law. Illegally protecting assets could be construed as misconduct and is viewed dimly by the courts and action could be taken on the Directors personally.

Tenable Solutions Limited specialize in legally protecting assets, this can be done quickly and conveniently and without disrupting trading.

It doesn’t matter whether the company has just set-up, been trading seventy years has £30million or £10,000 turnover. What matters is they have assets that need protecting, this could be physical assets or money personally lent to the company.

If you would like to learn more about protecting assets and how it could be of a benefit to your company, contact us for an informal chat.

EMAIL or call 0800 4 96 95 94

LITTLE KNOWN FACT ABOUT BAILIFFS.........

It is a little known fact that when bailiffs refer to tools of the trade it only refers to one set. Therefore if for example if the debtor runs a large hairdressers employing several hairdressers the bailiff only need leave one pair of scissors, one hairdryer, one set of combs etc.

This was an amendment to the 1981 Supreme Court Act in 1996. It states:-

“Section 138(3a)(a)(i) such tools, books, vehicles and other items of equipment as are necessary to that person for use personally by him in his employment, business or vocation”

If a bailiffs’ visit is looming then it is imperative that advice is sought. There are things that can be done to protect a debtor’s assets prior to a bailiffs’ visit.

BAILIFF FACTS / BAILIFF LAW

Types of Bailiff


Private Bailiffs (certified bailiff)

A County Court judge supplies a certified bailiff with a certificate lasting just two years. In order to obtain the certificate the applicant must demonstrate that he is a “fit and proper person” to hold the certificate, prove that they are not in the business of buying debts and that they have adequate knowledge of the law of distress. They must undertake a criminal records check, a County Court Judgment (CCJ) check, provide two references and also a security bond of £10,000 (usually being an insurance bond). Once the applicant has received the certificate it authorises them to levy distress anywhere in England and Wales.

A certified bailiff is not employed by the court nor are they an officer of the court. However, they are viewed as representatives of the court because they act under the certificate issued by the court. Because of this the court sets out strict standards of competence and conduct for Certified Bailiffs.

Only certified bailiffs can carry out the distress for council tax, non-domestic rates and parking fines, rent and child support agency arrears etc.

County Court Bailiff

County Court bailiffs are civil servants employed by the County Courts. They enforce County Court Orders and Judgements. These bailiffs are managed by senior staff at the County Court but they are responsible to the District Judge for their actions (for further info see section 123 of the Courts act 1984).

High Court Enforcement Officers

In this country there are only approximately 70 High Court Enforcement Officers. These are private sector bailiffs appointed to enforce High Court orders and any County Court order that has been transferred to the High Court for enforcement.


Bailiff Rights

Bailiffs do not have the right to force their way into an individuals’ home to seize goods. They only have the right of peaceful entry, peaceful entry constitutes as entering through an unlocked door, an open window even if a fence/gate has to be climbed over to reach it. They cannot damage property i.e. break a window / door. The ONLY exception to this is if the bailiff is from the Collector of Taxes (HMRC), they can get a warrant to force entry but this is very, very rare.

There is NO law that states entry has to be given to the bailiff and he is not allowed to force his way past the debtor to gain entry. They will however use ingenious methods to try and gain entry, asking to use the toilet etc.

There is a code of conduct for levies:-

· Unlawful force should not be used to enter premises
· If the only person present is under 18, the bailiff must depart but they are allowed to ask when the debtor will return. If there is only children 12 or under present the bailiff must simply leave.
· If the police are present, it will simply be to deal with breach of the peace and not assist with the levy. This must clearly be explained.
· Bailiffs should not disclose the purpose of their visit to anyone other than the debtor. Relevant documents should be left for the debtor in a sealed envelope.
· Visits should ideally be made between 6am and 9pm. Visits should not take place on Sundays, Bank Holidays, Good Friday or Christmas Day unless a court permits. Respect for other religions and cultures should be upheld and visits avoided on appropriate festivals and holidays.
· Goods that are clearly those of a child should not be seized.
· Bailiffs should take all reasonable steps to satisfy themselves that the values of the goods seized is proportional to the debt and charges owing.
· A receipt must be given to the debtor when goods have been removed.
· The debtor must be notified of the fees on each visit and of the fees that will be accrued if further action takes place.

Exempt Goods

There are several goods that bailiffs are unable to seize (except bailiffs acting on behalf of the Magistrate’s Court). These constitute goods that are deemed necessary to meet the basic domestic needs of the debtors family such as cooker, clothing, bedding etc. They are also unable to levy on items that are required for use in employment, business or vocation such as tools, goods or vehicles.

It is unlawful to hide or remove goods prior to a bailiffs visit.


Goods that don’t belong to the debtor

If a bailiffs visit is imminent it is wise for the debtor to get proof that the goods do not belong to them. Photographic evidence is also useful at this point, along with a list. Goods that are on Hire Purchase (HP) do not legally belong to the debtor until the final payment has been made BUT there may be circumstances in which these can be seized.

If the bailiff seizes goods that do not belong to the debtor the owner of the goods can then apply for the goods to be returned.

This is a very grey area and advice needs to be sought urgently by the debtor.


Overview

There are lots of grey areas where bailiffs are concerned, it is imperative that the debtor seeks advice.

If the premises are solely commercial rights of entry change and entry can be forced.

TENABLE SOLUTIONS LIMITED

Tenable Solutions Limited was formed to help businesses who are struggling with financial pressures; the aim is to recover the business and effectively turn it around. We spend a lot of time trying to improve our services and we have ascertained that business believe their problems worsened because they did not know where to turn for advice. Frighteningly many are members of organisations such as The Federation of Small Businesses and The Chamber of Commerce. Although these organisations have "legal helplines" etc the information that they have received has not been adequate or tailored to their individual issues. It became evident there was clearly a need in the business world, this is where Tenable Business Support Service was formed. The service offered far out rivals any from other organisations and membership costs just £25 per month - with a discount for annual membership.

Many of our clients have personally funded their businesses during the current economic climate - this has led to large credit card bills and loans which they are struggling to pay. Pure Financial Management is a debt management plan which can take away the stress from creditors and enable the client to make lower monthly payments. Although initially this was formed to help business people, Pure Financial Management can help ANY individual with debt problems and alleviate the stress and worry that debt can cause.

Many of our clients at Tenable Solutions Limited have problems with bad debts owed to the company. Many of them have tried to collect these debts but failed, this of course then has a knock on effect in their business. Tenable Debt Collection uses effective debt collection methods.

Another string to our bow at Tenable Solutions Limited is Tenable Accountancy, this is a service designed to help sole-traders, partnerships and small Limited companies with all their accounting issues.

If you would like to discuss any of the issues above then please do not hesitate to contact me:-

EMAIL or call 0800 4 96 95 94