If you are considering applying for a freezing injunction, it is essential that you consider all the implications of this legal remedy and the short and long term consequences of proceeding with it. Our team have been advising individuals, companies and financiers since 2002. Let us help you too.
If you are thinking of obtaining an asset freezing order, then there are certain strict requirements that need to be met in order to satisfy both the evidential and legal grounds required by a court before one is granted.
Asset freezing orders (or freezing injunctions as they are more commonly known) can only be obtained in certain circumstances and not as many people believe, in cases where one party simply owes money to someone else.
There are various key tests that need to be met for a freezing injunction or freezing order to be granted and these include
- demonstrating that there is a real risk that the debtors assets will be disposed of (i.e. put beyond the reach of the creditor); and
- that there is a good arguable case in respect of the main claim against the potential defendant.
- whilst there does not have to be a clear demonstration of some form of dishonesty or fraud involved in the underlying claim, freezing injunctions are most commonly sought in circumstances where there is a degree of dishonesty involved.
How we can help
Obtaining an asset freezing order requires the preparation of detailed affidavit (witness statement) evidence setting out all of the background to the claim, identifying the risk of dissipation of assets, identifying the assets concerned and setting out the key areas of dispute between the parties. The court will then consider this in the context of the legal argument put forward by your barrister at the asset freeze hearing and consider the terms of the order which is being sought.
If the court is minded to make an asset freeze order, it will then confirm the wording of the freezing order and this will then be sealed by the court. That sealed freezing order along with all relevant supporting papers and documentation and a copy of the underlying claim form and particulars of claim relating to the main case are then served on the defendant.
Asset freezing orders can be highly effective in the right circumstances. However great care needs to be taken when preparing for an asset freezing injunction application. The expert asset freezing order team at Francis Wilks & Jones can advise you on all aspects of the process including the evidence required and the cost of such an application.