Whether you are the applicant or a defendant - there are very important matters to be considered when dealing with freezing orders. Let our team of experts provide the help you need.
In debt recovery scenarios, there is always a danger that assets may be put beyond a claimant or creditor’s reach – meaning that any court judgment could become very difficult to enforce and you don’t recover the money you are owed.
Looking to freeze assets by way of an asset freeze is a possibility in certain circumstances but it is not as easy as some people think.
- in order to stop a party putting assets beyond a claimant’s reach, it might be possible to apply for what is known as a freezing order or freezing injunction to help with an asset freeze.
- however, these can only be obtained in limited circumstances, for example where there is a “real risk of dissipation of assets” and that the judgment or award will go unsatisfied.
There are various legal authorities relating to this particular area which also suggest that the more liquid / disposable the nature of the respondent’s assets (eg money and shares), the more likely a freezing injunction or freezing order will be granted by the court.
The court will also look at other issues when considering an asset freeze including the nature and financial standing of a defendant’s business, its past dealings, whether it is located and /or resident in the United Kingdom or abroad, whether there are any issues relating to dishonesty or fraud, whether there has been a past history of failing to comply with court orders or payments and whether for example the defendant has been evasive to previous questions and requests for payment.
Each asset freeze situation needs to be judged on its own merits. At Francis Wilks & Jones we have a brilliant team who can help in asset freeze situations. Contact our expert solicitors now and we can help you.