Bailiffs
If you owe money, one of the ways your creditors might try to get their money back is by using bailiffs. The role of the bailiffs is to take your goods away and sell them to raise money to pay your creditors.
The rules about bailiffs are very complicated and what the bailiffs can do legally depends on what the debt is for. Bailiffs are commonly used if you have council tax arrears or if you have a court judgment against you. They can also be used for unpaid fines, child support arrears, rent arrears, income tax arrears and parking penalties (fines).
The bailiffs almost always need a court order to take your goods away.
Do I have to let the bailiffs in?
In many cases, you do not have to let the bailiffs in and they can't force their way into your property. However, they are allowed into your property without your permission if they can enter without breaking in. This is called 'gaining peaceful entry' and includes getting in through an unlocked door or open window.
Sometimes, bailiffs are allowed to break into your property. For example, if you have got unpaid criminal fines, bailiffs working for the magistrates' court can, in some circumstances, use reasonable force to get into your home to seize goods. Also, in some circumstances, bailiffs can, with the court's permission, force their way into commercial property if there is no living accommodation attached.
However, it is unlikely that a bailiff would be allowed to break into your property in most other circumstances.
Will the bailiffs take everything away?
There are rules about what the bailiffs can take and these rules depend to some extent on what the debt was for. For example, for most debts, the bailiffs aren't allowed to take basic clothing, bedding, basic furniture and basic household goods.
Can the bailiffs take things that don't belong to the debtor?
Again the rules are very complicated. The basic rule is that bailiffs can only take away things that belong to the person who owes money. But they could take away goods that are jointly-owned by you and someone else.
What happens when goods are taken away?
They will be sold at auction. The money raised will pay first of all for the bailiffs' fees and the rest will be given to your creditors.
Can I negotiate with the bailiffs?
This depends. Sometimes the bailiffs say that you must negotiate directly with your creditors.
If the bailiffs do get in, you may have to sign a 'walking possession agreement'.
This means that the bailiffs make a list of the goods which they?ll take away if you do not pay within the time set out in the agreement or if you miss an instalment. You will usually have to pay a daily fee and you can't remove the goods on the list from the premises.
Signing a walking possession agreement will give you breathing space to get the money together to pay the debt, but it does mean that the bailiffs could break into your home to take the goods away if you don?t? stick to the agreement.
There are rules and policies about how bailiffs should behave. For example, they should not threaten a person and they should come to a person?s home at a reasonable time of day.
Creditor
Someone you owe money to.
Unsecured lending
Total loan & credit card debts excluding your mortgage and any hire purchase.
Country
The country you currently live in.
Insolvency Practitioners
Also known as an IP, a person who specialises in formal insolvency cases.
Valuations
The process of determing the current value of an asset.
Equity
The difference between the market value of a property and the claims held against it.
Lender
Someone you owe money to.
Eviction Order
A court order by which a person may be evicted.
Arrears
An unpaid and overdue debt.
Disposable Income
The amount of income left to an individual after taxes have been paid, available for spending and saving.
Statement of Affairs
A financial report showing assets and liabilities at expected liquidation values and shareholders' equity.
Insolvent
Unable to meet debt obligations.
Secured Loan
Money borrowed using goods or property as a guarantee.